Argentina: Extension Of The Amnesty Program For The Disclosure Of Unreported Foreign Currency

Last Updated: 19 April 2017
Article by Martín Barreiro and Juan Pablo Menna

EXTENSION OF THE AMNESTY PROGRAM FOR THE DISCLOSURE OF UNREPORTED FOREIGN CURRENCY

Executive Order No. 2008/2015 (the "Executive Order") was published in the Official Gazette on September 30, 2015. It extends for a 3-calendar month period until December 31, 2015 the possibility of adhering to the benefit granted by Law No. 26.860 which authorizes individuals or corporations to regularize foreign currency not previously reported with AFIP-DGI.

Remember that by means of Law No. 26,860 it was established an Amnesty Program for the Disclosure of Unreported Foreign Currency (the "Regime") in Argentina and abroad, authorizing the issuance of the following financial instruments, known as "Bono Argentino de Ahorro para el Desarrollo Económico" (Argentine Savings Bond Regime for Economic Development) ("BAADE" – by its acronym in Spanish), "Pagaré de Ahorro para el Desarrollo Económico" (Savings Note for the Economic Development) ("PAPDE" – by its acronym in Spanish), and the "Certificado de Depósito para Inversión" (Certificate of Deposit for Investment) ("CEDIN"- by its acronym in Spanish).

The benefits to be granted by the Regime are subject to the condition that the externalized foreign currency amount be allocated to purchase any of the financial instruments created by the Regime. 

I. BAADE. PAPDE

The Regime authorizes the Argentine Ministry of the Economy and Public Finance to issue the BAADE and PAPDE in U.S. dollars, under the financial conditions to be determined at the time of their issue. The funds generated by it shall be used to finance public investment projects in strategic sectors, such as infrastructure and hydrocarbons. 

II. CEDIN

The Regime authorizes the Banco Central de la República Argentina (Argentine Central Bank) (the "BCRA") to issue the CEDIN in U.S. dollars and shall be a registered, endorsable instrument qualified to pay debts in US dollars.

CEDIN subscription may be processed at the banks listed in the Ley de Entidades Financieras (Financial Entities Law). The certificate shall be cancelled in US dollars only after having verified that it has been allocated to purchase pieces of land, storehouses/warehouses, business premises, offices, garages, plots and parcels of land and dwelling houses already existing and/or to build new dwelling units and/or to the refurbishment of buildings. 

III. Beneficiaries. Exclusions

Individuals, undivided estates of deceased persons, corporations and trust where the trustor (or settlor) is also the beneficiary (excluding financial trusts and trusts in which the trustor-beneficiary is not an Argentine resident for tax purposes) may be eligible to voluntarily externalizing foreign currency holdings in the country and abroad.

Externalization shall include foreign currency holdings in Argentina and abroad as of April 30, 2013. Holdings of foreign currency in the country and abroad resulting from the proceeds of assets existing as April 30, 2013 will also be included within the scope of the Regime.

The following individuals are excluded from the scope of the Regime:

a) Bankrupts not discharged;

b) Those criminally prosecuted or accused under the Criminal Tax Law;

c) Those formally arraigned or criminally prosecuted for minor offenses for having infringed their tax obligations or the obligations of third parties that were subject to final judgment rendered prior to the effective date of the Regime;

d) Those accused of having committed money laundering or terrorism financing crimes, their spouses and relatives up to the second degree of consanguinity or affinity;

e) Corporations, the directors of which have been formally arraigned or criminally prosecuted under the Tax Criminal Law and for minor offenses related to the infringement of their tax obligations or the tax obligations of third parties;

f) Those who hold or have held a public office, their spouses and relatives up to the second degree of consanguinity or affinity, in any branch of the national, provincial, municipal government or the City of Buenos Aires. 

IV. Procedure to implement the disclosure

The benefits to be granted under the Regime are subject to the condition that the externalized foreign currency amount be allocated to purchase any of the financial instruments created by the Regime.

The externalization shall be implemented by the deposit or transfer of funds from foreign countries to those entities listed in the Ley de Entidades Financieras (Financial Entities Law).

In order to enjoy the benefits granted by the Regime, taxpayers must have previously complied with the filing and payment of the relevant income tax, minimum presumed income tax, and tax on personal assets no later than May 31, 2013 corresponding to the fiscal years ended as of December 31, 2012.

Moreover, those taxpayers that decide to avail themselves of those benefits under the Regime shall previously waive promotion of any procedure based on Executive Order No. 1043-1003 (application of the convergence factor to foreign trade transactions) or to demand the implementation of any kind of updating procedures. 

V. Benefits

The underlying benefits are as follows:

a) They shall not be bound to report to the Administración Federal de Ingresos Públicos (Federal Tax Authority ("AFIP") either the date of purchase of the assets that are externalized or the origin of the funds with which they were acquired;

b) Externalized assets are exempt from Income Tax, Value Added Tax as Unreported Income;

c) They are released from any civil, commercial, criminal, tax, administrative and professional actions or proceedings that may correspond to those held liable for violations or infringements punished by the Regime and those that may derive therefrom. The following individuals shall also be exempt therefrom, namely, managing partners and managers of partnerships, directors, managers, statutory auditors and members of supervisory committees of sociedades anónimas (stock corporations) and sociedades en comandita por acciones (partnerships limited by shares) and those holding equivalent positions at cooperatives, trusts and mutual investment funds, and any professionals certifying the respective balance sheets;

d) Exemption from the payment of Income Tax, Tax on Transfers of Title to Real Property of Individuals or Undivided Estates of Deceased Persons, and Taxes on Credits and Debits on Bank Accounts, Excises and Value Added Tax, Minimum Presumed Income Tax and Tax on Personal Assets and the Special Contribution on the Capital of Cooperatives, Tax on Credits and Debits on Bank Accounts and Other Transactions with regard to the taxable amount of the relevant tax; and

e) The AFIP shall be not be bound to file any criminal charges for offenses under the Criminal Tax Law and the BCRA shall not be bound to bring summary proceedings for infringement of exchange regulations and/or file any criminal charges in respect of offenses under the Criminal Exchange Regime, to those individuals adhering to the Regime.

The Regime shall not release financial institutions or other individuals liable for obligations associated with legislation aimed at preventing money laundering, financing of terrorism or other crimes under special laws.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
 
Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
 
Related Articles
 
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions