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Argentina

Government and institution measures in response to COVID-19.

Government and institution measures in response to COVID-19.

Return to homepage  |  Last updated: 20 May, 2020

General Information

The administration announced a number of measures, to fight the slowdown, targeted at poorer consumers (estimated cost of 2% of GDP). This includes a special bonus for people who receive the lowest pensions, as well as for poor families with children. Also increased assistance to food banks including at schools, and more resources for social programs reaching over 9 million people. Price ceilings have been established for essential products including food and sanitary products. Layoffs are prohibited for 60 days effective March 31st. Monetary policy will remain expansionary, as the administration focuses on protecting the economic activity and this is the main relief measure available for large companies, in general.  The Government announced it will implement a plan of ARS 350 billion (USD 5 billion) to provide relief to companies certified as “MiPyMEs” (small and medium companies) for which social security contributions will be reduced and the State will absorb the cost of part of the salaries. 

Tax measures – Direct and Indirect

(e.g. payment deferrals, rate reductions…)

Click here to see a comprehensive summary of jurisdictional tax measures and government reliefs in response to COVID-19.

Employment-related measures

(e.g. state compensation schemes, training…)

  • Labor license for vulnerable populations including people over 60.
  • Decreto 332 creates the Emergency Assistance Program for Jobs and Production with these benefits: a) Postponement of the payment of employer contributions to the Argentine Integrated Social Security System (SIPA); b) Reduction of up to 95% of the payment of employer contributions destined to SIPA; c) The National Social Security Administration (ANSeS) will cover part of the wages. Among the requirements to access this help we can mention: i) economic activities critically affected ii) significant percentage of employees who cannot provide services ii) there is a substantial reduction in sales after March 20th, 2020.
  • By Resolución AFIP 4693/2000, employers included in the activities published by the AFIP (basically all those not considered essential) and who register will enjoy an automatic postponement of March employer’s contributions to mid-June.  Other benefits to these and other employers will depend on the decision of a Committee created under the Emergency Assistance Program for Jobs and Production.

Economic stimulus measures

(e.g. loans, moratorium on debt repayments…)

  • C A6946 of the Central Bank provides incentives so banks grant credits at preferential rates to small and medium companies for the payment of salaries.
  • Expansion of Ahora 12 program which provides incentives for consumption of national products, including through online platforms.

Custom Measures

Duty relief

  • A 0% import duty rate has been established for several goods (e.g. personal protection equipment, medical equipment and tools, etc.).
  • The imports of such goods are exempted from the application of the statistics fee.

Other measures

  • By means of Decree Nbr. 297/2020, the President established a measure of "social preventive and mandatory isolation", aimed at protecting public health. Among other activities, pressing and essential activities related to international trade are exempted of such measures.
  • However, as a consequence of such measure, Customs is currently handling essential import and export operations and verifications with reduced staff and shifts.
  • The above referenced exemption was extended to the following activities related with international trade: exports of products already elaborated, and imports deemed to be essential for the functioning of the economy.

Measures to ease the lockdown

  • Ban on entering the national territory extended up to and including May 10.

Other measures and sources

  • Trade restrictions including required pre-authorizations to export medicine and medical equipment have been imposed.
  • Res 11 IGJ allows the collegiate bodies of the companies to meet virtually during the time that the quarantine lasts, even though the by-laws do not provide for it.
  • Public bodies (e.g. courts, tax authorities of different level) declared administrative/judicial non-working days for which deadlines for procedures before these bodies (e.g. tax litigation) have been extended.  The recess ends sometime between March 31st and April 10th, depending on the jurisdiction and will be probably extended. This does not affect the obligation of taxpayers to declare and pay taxes normally. 

Main sources of information

Contact us

Tax: Rodolfo P Canese Mendez –  rcanese@kpmg.com.ar
Restructuring: Andrea Oteiza – aoteiza@kpmg.com.ar
Legal: Juan M Jovanovich – mjovanovich@kpmg.com.ar