Argentina Fintech Legal News | #3.
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Fintech Department Report | Argentina Fintech Legal News #3
Dear Sir or Madam,
From the Fintech department of Beccar Varela please find our Newsletter Nº 3 in which you can find a brief summary of the recent legal developments that we consider relevant for the Fintech environment in Argentina.
FX Restrictions for certain Offshore Payments with Cards
To avoid the purchase of FX in excess of legal limits.
On October 31st, 2019, the BCRA issued Communication “A” 6823 whereby offshore payments abroad are restricted by the use of credit, debit or prepaid cards issued in the country, when payments are originated in gambling and betting games, in transfer of funds to accounts of Payment Service Providers, in transfer of funds to investment accounts in investment managers located abroad, in the carrying out of foreign exchange operations, and/or in the acquisition of crypto assets in its different modalities.
New Tax Withholding Regimes
Applying on electronic payment means.
On October 29th, AFIP issued the General Resolution No. 4622/2019 establishing new tax withholding regimes for the Value Added Tax and Income Tax. These new tax withholding regime are in charge of providers of electronic payment services and/or electronic collections on behalf of third parties, including payments made through the use of mobile devices and/or any other electronic means, including virtual means. The tax withholdings apply to the liquidation of funds made to merchants through the referred electronic means.
These regimes are in effect for liquidations as from November 19 and only apply to merchants who are registered as responsible subjects for the Value Added Tax or who do not evidence their condition on such tax or their condition of being under the Simplified Tax Treatment for Small Taxpayers. “Micro Enterprises” and “Potential Micro Enterprises” are also exempted.
The Resolution establishes scales with the withholding amounts corresponding to each tax, which vary in each case depending on the type activity and the means used for the purchase (i.e. whether or not a credit or purchase card was used). The base liquidation subject to withholding may deduct (up to 15% of the base) the amounts of any gratification, tips or rewards voluntarily paid by the purchaser.
New Tax Information Regimes with the AFIP
For both those who provide electronic payment services on their own behalf and for those who provide them on behalf of third parties.
On October 24th, AFIP issued the General Resolution No. 4614/2019, through which a new tax information regime was established with the purpose of ensuring the “transparency and traceability of operations” carried out through electronic means of payment.
With effect for operations as of November 1st, providers of electronic payment services (such as aggregators, etc.), that are residents or domiciled in the country, must comply with an information regime about the fees charged for the services they offer, as well as about the operations carried out by the merchants associated to the mentioned service.
The monthly information to be provided for each merchant includes tax identification number (CUIT), activity code, bank or virtual account number (CBU/CVU), total amount of operations, and amount of the fees charged by the platform for the electronic payment service.
On the other hand, the providers that manage, control or process movements of assets through electronic or digital platforms, on behalf of individuals or legal entities that reside in the country or that reside abroad, must comply with an information regime related to the name of accounts of their clients, as well as to the opening, cancellations or alterations of clients, and the total amounts of inflow, outflow and final monthly balance of the clients’ accounts. The regulation also establishes a conversion mechanism of the amounts expressed in foreign currency or cryptocurrency into local currency.
Regulation of the IT Promotion Regime
The regime was finally regulated and certain rules regarding its application were established.
On October 15th, Decree No. 708/2019 approved the regulation of the “Regime for the Promotion of the Knowledge Economy” created by Law No. 27,506. In addition, on October 18th the Secretary of Entrepreneurs and Small and Medium-sized Enterprises complemented the regulation with its Resolution No. 449/2019.
In brief, these dispositions regulate the minimum percentages of sales, earnings, exports and employment that IT companies must comply in order to qualify for the promotion regime, and also the administrative process for getting and keeping the registration.
We hereby redirect the first and second Reports issued by our Tax Law Department, which outline in more detail the main aspects of these regulations.
A Court Suspended the Equivalence between Digital Signature and Notarized Signature
Pre-cautionary measure requested by the Notary Bar.
On September 24, 2019, the Federal Civil and Commercial Court No. 5, in re “Colegio de Escribanos de la Ciudad de Buenos Aires c/ Estado Nacional Jefatura de Gabinete de Ministros”, File 4451/2019, admitted a precautionary measure in favor of the Notary Bar of the City of Buenos Aires and suspended the application of certain sections of Decree No. 182/2019, which assimilated the digital signature with a physical signature certified by a notary public. The main allegation made by the plaintiff is that the Executive Branch, by the issuance of this Decree, exceeded its constitutional regulatory power.
The court resolution was appealed by the Federal Government and is awaiting a new decision at the second court level.
Do not hesitate to contact us should you require any further information on these matters.
Sincerely,
Daniel Levi
María Shakespear
Pablo J. Torretta
This report contains a summary of regulations published in Argentina. The summary as such is not complete and does not imply advice of any kind. Do not hesitate to contact us shall you require assistance on these matters.