close
Share with your friends

Argentina: Emergency assistance program for employers (COVID-19)

Argentina: Emergency assistance program for employers

Additional relief is provided under an emergency assistance program for employment and jobs in response to the coronavirus (COVID-19) pandemic.

1000

Related content

Resolución General 4746/2020 (Spanish) (published 27 June 2020) announces the opening of the period for employers to register for benefits under the emergency assistance program for jobs and production (“ATP” for its acronym in Spanish) for the month of June 2020. 

Separate norms or decisións administratives (DECAD 817/2020 (Spanish) , DECAD 887/2020 (Spanish) and DECAD 1133/2020 (Spanish)) impose restrictions on companies that receive assistance under the ATP program. These provided, in part, that:

  • Employers cannot distribute dividends for the fiscal periods closed from November 2019.
  • Employers cannot repurchase their shares directly or indirectly.
  • Employers will not have access to the financial market to exchange pesos into foreign currency.
  • Employers will not be able to make payments of any kind, directly or indirectly, to beneficiaries whose residence, location or domicile is in a “non-cooperative jurisdiction” or a jurisdiction with low or no taxation.

These restrictions are applicable for a period of 12 months for companies with up to 800 workers, and for two years for companies with more than 800 employees. Additionally, for companies with more than 800 employees, they cannot increase by more than 5% the amounts of salaries, advances or fees that they pay to members of the corporate administrative bodies (such as the Board of Directors) for two years.

Some of these requirements are applicable retroactively for prior months, for which DECAD 817/2020 recommends establishing a mechanism so that enrollees can cancel their participation in the program and return the amounts received.

Resolución General 4719/2020 (Spanish) establishes the mechanism by which employers can cancel their participation in the emergency assistance program and return the amounts received (increased by an inflation adjustment factor imposed from the date the benefits were disbursed until the date of restitution). 


For more information, contact a KPMG tax professional in Argentina:

Hernán Caire | +54 (11) 431 65737 | hcaire@kpmg.com.ar

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal