The Argentine Central Bank (BCRA) issued Communication “A” 7518 (“Communication“), which provides some flexibility on the obligation to settle in the official foreign exchange market proceeds related to exports of certain services, both for individuals and legal entities.
The Communication establishes that it will not be necessary to settle proceeds related to exports of services corresponding to (i) construction, (ii) telecommunications, (iii) information technology, (iv) advertising, and (v) trade-related services, among others (“Benefit” and the “Excepted Services“, respectively). In this sense, the following limits and requirements must be complied with:
Individuals: Individuals can use the Benefit for up to USD 12,000 per calendar year. Once the limit is reached, then the individual has an obligation to settle all proceeds related to exports of services.
In addition, the individual must submit an affidavit indicating that within the 90 days prior to and within the 90 days after the use of the Benefit, they have not made or will not make any sale, exchange, or acquisition of securities issued by Argentine residents with settlement in foreign currency or acquisition in the country of securities with settlement in pesos issued by nonresidents.
Legal entities: Legal entities must obtain a Certification of Increase in Exports of Services in 2022 to be issued by a local financial entity (“Certification“). For this, the local financial entity must verify: (i) that the number of exports settled for the Excepted Services during 2022 is higher than in 2021; and (ii) that the legal entity has settlements of exports related to the Excepted Services during 2021. In addition, the Certification may not exceed the foreign currency equivalent of the lesser of (a) 50% of the value by which the income received under the Excepted Services in 2022 exceeds that in 2021, and (b) the amount in foreign currency equivalent to 20% of the remuneration paid to workers in the previous calendar month multiplied by the number of months remaining until the end of the year. The lesser amount is the amount that may be paid without liquidation.
In addition, the legal entity must comply with the following obligations: (a) submit an affidavit as the one indicated for individuals in relation to the operation with securities; (b) only use the funds to pay up to 20% of salaries to employees (in accordance with Section 107 of the Employment Law); and (c) settle in the official foreign exchange market, within a maximum term of five business days, those funds that were finally not used to pay salaries to employees as of 31 December 2022.
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