MAY 26, 2020

Decisión Administrativa N°817/2020 – Adopción recomendaciones del Comité de Monitoreo de Evaluación del Programa de Asistencia de Emergencia al Trabajo y a la Producción en el Acta N°11.

CIRCULARS

CIRCULAR

Labor & Social Security Law Department Report | Administrative Decision No. 817/20: adoption of measures of the Monitoring Committee for Evaluation and Assistance to Work and Production

Dear Sir or Madam,

Administrative Decision No. 817/20 (the “Administrative Decision”), published in the Official Gazette on May 18th, issued by the Chief of the Cabinet of Ministers, adopts the recommendations made by the Monitoring Committee for Evaluation and Assistance to Work and Production (the “Committee”) in Minutes No. 11.

The Administrative Decision states the following:

(i) In relation to the Supplementary Salary benefit:

a) To incorporate new activities in the transport, health, and sports club sectors.

b) To recommend AFIP establishing a mechanism to implement the withdrawals requested by the companies with respect to the benefits that have been granted to them under the ATP.

c) To set that those companies with less than 800 workers that were granted with the benefit shall not carry out the following operations during the current year and the 12 months following the end of the financial year after which the benefit was granted:

1. Distribute profits for the fiscal periods closed from November 2019.
2. Buyback your shares directly or indirectly.
3. Acquire securities in Argentinian Pesos for their subsequent and immediate sale in foreign currency or their transfer in custody abroad.
4. Make expenditures of any kind to subjects directly or indirectly related to the beneficiary whose residence, location or domicile is in a non-cooperative jurisdiction or with low or no taxation.
5. Decrease their net patrimony for any of the reasons previously described until the conclusion of the 12 months period following the end of the financial year after which the benefit was granted.

d) Those companies with more than 800 employees, will not be able to carry out the aforementioned operations for a period of 24 months following the end of the financial year after which the benefit was granted.

e) That AFIP must send the Central Bank and the National Securities Commission the list of beneficiary companies.

(ii) In relation to social security contributions payable over May salaries:

a) To postpone the due date of the contributions of employers who are beneficiaries of the ATP program and are included in the activities to which the benefit was granted in previous periods.
b) To reduce by 95% the employer contributions for those employers included in the activities mentioned in the embedded Exhibit of Minutes No. 4 and in point 2.3 of Minutes No. 5 of the Committee.

Should you require any further information on this matter, please do not hesitate to contact us.

Sincerely,

Alvaro J. Galli