Communication “A” 6869 “Exchange Controls”

On January 16, 2020, the Central Bank of Argentina (CBA) relaxed exchange restrictions and enabled entities to exchange foreign currency abroad in terms of profits and dividends without prior CBA compliance under a series of requirements:

• Profits and dividends must correspond to closed and audited balance sheets.
• The total amount paid in profits and dividends to non-resident shareholders, won’t exceed the amount in local currency that corresponds to them according to the distribution determined by the shareholders meeting.
• The total amount of transfers for this concept since 01/17/2020 should not exceed 30% of the value of the new contributions of foreign direct investment in resident companies entered and settled through the exchange market.
• The client must present the documentation that guarantees the final capitalization of the contribution. If they do not have it, proof of the beginning of the registration process must be presented before the Public Commerce Registry of the final capitalization decision of the capital contributions computed according to the corresponding legal requirements and present the documentation of the final capitalization contribution within 365 calendar days from the beginning of the process.
• If applicable, it must be verified that the declaration of “Relief of external assets and liabilities” for the operations involved has been accomplished.

Cases that do not fit into these conditions must have the prior approval of the CBA to access the foreign exchange market for the foreign exchange currency for these concepts.