Argentina

Government and institution measures in response to COVID-19.

Government and institution measures in response to COVID-19.

Return to homepage  |  Last updated: 14 October, 2020

General Information

The administration's policies are aimed at guaranteeing access to food, sustaining the income of the most vulnerable sectors, facilitating access to credit for companies and small businesses and granting certain state aid so that the companies affected by the quarantine can pay the salaries.(estimated cost of 5 % 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. Aid to pay wages is channeled through the Emergency Assistance Program for Jobs and Production, which access requires companies to meet certain requirements. Price ceilings have been established for essential products including food and sanitary products. Layoffs are prohibited until November 30th, 2020. Monetary policy will remain expansionary to lower interest rates in a context of high inflation and thus facilitate access to credit.

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, depending on the case: 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.  In addition, and related to for the fiscal periods closed from November 2019, employers cannot make dividend distributions, engage in certain financial transactions, make payments to beneficiaries located in low-tax on non-cooperative jurisdictions.  These restrictions apply for 12 months for companies with 800 or less employees and 24 months for the rest.  In addition, companies with more than 800 employees cannot increase wages or fees of their Board of Directors or similar collegiate bodies.

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.
  • Resolution 132 of the Ministry of Productive Development creates a program that aims to promote, through technical and financial assistance to companies that develop productive and technological solutions, mainly in the medical-health sector, whose purpose is to contribute to the treatment and mitigation of Coronavirus.
  • Law 27563.  Relaunch of the tourism industry.  Low income tourists will be awarded a discount voucher for tourism in the country.  Airlines, land passenger transport services, hotels, travel agencies, certain restaurants, etc. and their supplies can use these vouchers to pay federal taxes.  These activities are also granted a deferral of federal taxes until December 31st, 2020.  Some benefits will not be operative until regulations are issued.
  • Resolution 327 of the Ministry of Productive Development provides financial assistance to promote innovative solutions generated by the sectors of the knowledge economy (computer and digital software and services, audiovisual production, biotechnology, nanotechnology, aerospace and satellite Industry, engineering and Industry 4.0, among others) to address the health, economic and productive problems generated by the COVID-19 Coronavirus pandemic.

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
  • Exports of leather are exempt of export duties for 60 days effective June 24 (it was not extended).

Measures to ease the lockdown

  • Restrictions to enter the national territory extended up to October 11th, which will most probably be renewed.

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 during the time of the lockdown. This does not affect the obligation of companies to declare and pay taxes normally, although the due dates of certain informative returns have been postponed (e.g. transfer pricing studies). 

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