Foreign Exchange Controls in Argentina
1. General overview
In December 2001 and after over ten years of economic deregulation, the Central Bank of the Republic of Argentina (the “Central Bank”) imposed very tight exchange controls. As from the end of the year 2002, the Central Bank has gradually loosened some restrictions until October 2011, when it started to strengthen the restrictions again as consequence of the global economic crisis and the depletion of its foreign exchange reserves. Currently, foreign exchange restrictions are not only imposed by the Central Bank but, in practice, also by the Argentine Tax Authority, through tax regulations. Foreign exchange and tax related regulations are very detailed and specific and are being modified very often. Notwithstanding the regulatory foreign exchange and tax, in addition, since October 2011, foreign exchange transactions have been generally subject to de-facto restrictions, preventing local financial entities or exchange houses from processing operations of their clients that would otherwise be authorized pursuant to regulations. Under this scenario, please note that the following is a general description and that is limited to the regulations currently in effect.
Termination of the Bilateral Double Taxation Treaties with Chile and Spain
The Argentine Government has recently terminated the bilateral Double Taxation Treaties in place with Chile and Spain.
Offer letters tacitly accepted are not subject to stamp tax
In Petrobras Energía S.A c/Prov. del Chaco, the Supreme Court of Argentina decided that the Provincial Stamp Tax did not apply to this case since the existence of the taxable event had not been proved. The case related to an offer letter for the supply of fuel in the territory of the Province sent by a gas stationer to the oil company that was tacitly accepted by the oil company trough the performance of an action stated in such letter.
New tax credit regime for investors in the Province of Buenos Aires - Law 14,005
Through Law No. 14,005, the Province of Buenos Aires established a tax credit regime that will apply to investors in real estate, farming, industry, tourism and services located in said Province, provided that such investments remains owned by the original investor for a minimum of 2 years.
Investments in new capital goods
Decree No. 726/2009 was issued regulating Law 26,360, which provides for a special tax treatment of investments in new capital assets, excluding automobiles, provided that they are depreciable movable property to be used in industrial activities and as infrastructure works, excluding civil engineering works.