Through Communication A 5899 of the Central Bank of Argentina, dated February 4, 2016, the obligation to settle foreign currency from the export of services was eased. Communication A 5899 contains a lot of provisions designed to correct and simplify the intricate tangle of exchange regulations in Argentina, and enables exporters of services to keep the foreign currency earned from the export of services, provided that the currency is actually entered into the country and the requirements contained in the Communication are met.
Communication A 5899 provides in Section 3 that exporters of services and those who obtain foreign income from the exploitation of non-financial non-produced assets may enter into the country the currency thus obtained for credit in local foreign currency accounts without being enforceable the settlement on the domestic foreign exchange market, to the extent that the following conditions are met:
- The entry is made within the period applicable to the corresponding concept to the money paid.
- The amounts entered under this procedure shall not exceed the monthly limit of USD $ 2M for the formation of foreign assets set forth by Communication “A” 5850.
- The inflow of funds under this scheme will involve a reduction in the same amount of monthly limit indicated in the preceding point, equivalent to the amount entered.
Entry of foreign currency in this mode is subject to a special registration system to allow monitoring and control of the limits for this kind of transactions, and requires the accreditation of foreign currency at a bank in Argentina, but even with the limitations contained is an enormous step forward to put behind the foreign exchange settlement obligations imposed by a presidential decree in 1964 that is still in force.
The funds thus obtained can then be transferred abroad in payment of obligations of the exporter, or for the formation of foreign assets abroad. It should be noted that this system is not available for exports of goods, for which the obligation to settle the foreign exchange earned from exports is maintained. We also call attention to this new regime does not foresee the possibility of maintaining the export currency accounts abroad, but that the currency should be admitted to the country.
Among non nonfinancial assets can be mentioned intangible assets such as football players transferences, patents, trademarks, copyrights, royalties, license fees, grants, leases and other transferable contracts.
For any questions related to this topic, please contact Palico Millé palico@mille.com.ar