Agreement with Luxembourg

On April 13, 2019, in Washington, United States, within the framework of the IMF and World Bank Spring Meetings, the Minister of Treasury, Nicolás Dujovne, and the Minister of Finance of Luxembourg, pierre Gramegna, signed an agreement to avoid double taxation. The agreement includes provisions on income and property tax and on the prevention of tax evasion and avoidance.

The execution of the agreement constitutes a milestone in the relationship between both countries and increases legal certainty.

This agreement includes anti-abuse provisions in accordance with the latest international recommendations. It has been signed by the Ministers, but it still needs the internal approval of each country for its entry into force.

Agreement between Chile and Argentina

Argentina and Chile have acknowledged the activation of the “most-favored nation clause” set forth in Article 12 of the Protocol to the Agreement to avoid double taxation.

As a result, the maximum percentage on the payment of the interest rate applied within the framework of the agreement has been reduced from 15% to 12% for payments as from January 1, 2019.

Agreement between Argentina and France

Both countries have agreed that the tax treatment set forth in Article 11, Section (b) of the Agreement is applicable to the interest rate paid regarding a loan granted, guaranteed or covered by the French governmental body Bpifrance Assurance Export.

Tax agreements entered into during the G20 Leaders Summit in Argentina

Within the framework of the last G20 Leaders Summit in Buenos Aires, the Agreement between Argentina and Turkey and the Agreement between Argentina and China were entered into.

Both agreements comply with the negotiation policy for tax agreements in Argentina and with the relevant international standards.     

Buenos Aires, April 15, 2019. The Ministry of Treasury announces it will begin with daily auctions, through the Central Bank of the Argentine Republic (BCRA in Spanish), to allocate dollars received within the framework of the Stand-By Agreement with the International Monetary Fund (IMF). The objective of the auctions is to enable the Ministry of Treasury get the necessary pesos to cover the expenses the Treasury has in local currency.

The Ministry of Treasury has informed to the BCRA it is willing to sell 60 million dollars per day until it reaches a total of 9.6 billion dollars.

The BCRA will inform the details of the auction and the results.

As from May 2, the Tax Dispute Resolution Tribunal of Argentina will begin to implement the electronic file, which will be the only and mandatory way to bring actions within its jurisdiction.

This way, the body that depends of the Argentine Ministry of Treasury is modernizing itself and facing a new period where all the procedures will be developed electronically. Files in paper will no longer be used.

All the cases will be administered through a digital platform where users can access with their Argentine Tax ID and Tax Code No.2, in every stage of the procedures and 24 hours a day. There is a User’s Guide available at the website: https://www.argentina.gob.ar/tribunalfiscal

The Ministry of Treasury reports it received USD 877 million, nominal value, in offers for LETES due on 11/15/2019 and ARS 43.3 billion, nominal value, for LECAPS due on 07/31/2019.

For 217-day LETES, the Ministry sold a total of USD 700 million, nominal value, the cut-off price was of USD 973.94 for every USD 1,000, nominal value, which represents a Nominal Annual Rate of 4.50% and an Annual Effective Internal Rate of Return of 4.54%. The cut-off price offers at the Competitive Stage were distributed on a pro-rate basis by a factor of 97.2220945622667%.

For 110-day LECPAS, the Ministry sold a total of ARS 38 billion, nominal value, the cut-off price was of ARS 988.50 for every ARS 1,000, nominal value, which represents an Annual Nominal Rate of 55.02% and an Annual Effective Internal Rate of Return of 66.34%. The cut-off price offers at the Competitive Stage were distributed on a pro-rate basis by a factor of 49.0389730136856%.

The Ministry received a total of 8,840 purchase orders.