Central Bank publishes regulations for the Investment Promotion Regime for Exports
8 abril 2021

ARGENTINA

On April 8, the Central Bank of Argentina published the regulations for the Investment Promotion Regime for Exports, created by the Executive Branch through Decree 234/2021, with the purpose of promoting investments for the start-up of new productive projects and the expansion of existing business units that require investment in order to increase their production. You may access the press release by clicking here.

As explained by the entity, companies that adhere to the regime and make investments exceeding US$ 100 million may use up to 20% of the foreign currency obtained from exports related to the project, to be used for the payment of capital and interests of commercial or financial liabilities abroad and/or profits and dividends corresponding to closed and audited balance sheets and/or repatriation of direct investments of non-residents. This benefit has a maximum annual limit equivalent to 25% of the gross amount of foreign currency entered by the company in the Single and Free Exchange Market (MULC, in Spanish).

On the other hand, the Central Bank will admit the application of foreign currency collections for exports for the following operations:

  • Payment upon expiration of capital and interest on debts for the importation of goods and services.
  • Payment upon expiration of capital and interest on financial indebtedness abroad.
  • Payment of profits and dividends corresponding to closed and audited balance sheets.
  • Repatriation of direct investments of non-residents in companies that are not controlling companies of local financial entities.  

In addition, exporters opting for this mechanism must designate a local financial entity to monitor the project.

Noticias Relacionadas
wefeqwf