BOPREAL: Payment of Tax and Customs Obligations. PAIS Tax.

The National Executive Branch issued the Decree 72/2023 (the “Decree 72”), published in the Official Gazette on 22December 2023 and effective as of that date, which provides that the bonds or securities (hereinafter, the “BOPREAL”) issued by the Central Bank of the Argentine Republic (“BCRA”, as per its acronym in Spanish) which can be subscribed by those having debts for either imports of goods the customs entry of which took place until 12 December 2023, and/or import of services effectively rendered, until such date (the “Stock of Import Debt”), may be given in payment for the cancellation of overdue tax and customs obligations, plus interest accrued thereto, fines and accessories. Federal Administration of Public Revenues (“AFIP”, as per its acronym in Spanish) shall be in charge of the application, collection and control of this mechanism.

• Exceptions: The following concepts shall not be paid by means of BOPREAL: (i) social security charges (withholdings and contributions); (ii) health insurance contributions; (iii) work risk insurance; (iv) contributions to occupational risk insurance companies; (v) Tax on Credits and Debits in Argentine Bank Accounts and other transactions; and (vi) obligations arising from substitute or joint and several liability for third party debts or from acting as withholding and collection agents.

• BOPREAL’s holders may give them in payment at their technical value calculated at the applicable exchange rate.

• The computation of the BOPREAL value that might be given in payment for the cancellation of overdue tax or customs obligations shall be limited to a total value of USD 3,500,000,000, to be used according to the following schedule:

(i) A maximum value equivalent to USD 1,000,000,000 from 30 April 2025 to 29 April 2026, both dates inclusive.

(ii) A maximum value equivalent to USD 1,000,000,000 from 30 April 2026 to 29 April 2027, both dates inclusive.

(iii) A maximum value equivalent to USD 1,500,000,000 from 30 April 2027 to 31 October 2027, both dates inclusive.

• Furthermore, the Decree 72 expressly recognizes that the right to give BOPREAL in payment constitutes an acquired right that is part of the subscriber’s and/or holder’s property right. Any debt restructuring, whether mandatory or voluntary, will not affect such right.

• The BOPREAL shall only be given in payment until the BCRA makes a principal amortization. If the BCRA makes a partial payment of the principal, the BOPREAL shall only be used up to the amount of outstanding principal.

• Once the BOPREAL are given in payment for the cancellation of the obligations, the holder shall not be entitled to make any claim to the BCRA.

• The BCRA and AFIP will issue clarifying and complementary rules.

• Lastly, the subscription in pesos of the BOPREAL is levied by the PAIS Tax, to the extend the purchase of foreign currency for the payment of imports of goods and services is covered by such tax.

a) The tax shall be determined on the total amount of the transaction for which the BOPREAL are subscribed.

b) The tax rate shall be: (i) 0% until 31 January 2024; (ii) as from 01 February 2024, the tax rate shall be the one enforce and applicable to the purchase of foreign currency for payment of imports of goods and/or services for which the BOPREAL are subscribed.

To access the text of the Decree 72 please click: 

https://www.boletinoficial.gob.ar/detalleAviso/primera/301199/20231222

For more information, please contact:

Liban A. Kusa: liban.kusa@bruchoufunes.com

Eduardo Mallea: eduardo.mallea@bruchoufunes.com

María Laura Bacigalupo: maria.laura.bacigalupo@bruchoufunes.com

Ezequiel Lipovetzky: ezequiel.lipovetzky@bruchoufunes.com

Daniela C. Rey: daniela.rey@bruchoufunes.com

Pablo M. Muir: pablo.muir@bruchoufunes.com

Nicolas Nogueira Castellini: nicolas.nogueira.castellini@bruchoufunes.com