The Central Bank of Argentina, the Federal Tax Administration (AFIP) and the National Securities Commission regulated the Tax Amnesty system for construction established in Law 27.613.

The National Securities Commission (the “CNV”) published General Resolution No. 884/2021 (the “Resolution”), which regulates the traceability of transactions permitted under Law 27.613 and the application of declared funds to the purchase of collective investment vehicles for real estate purposes.

The Resolution provides as follows:

(i) First of all, the opening of special custody sub-accounts must be requested from the Central Depository Agent for Negotiable Securities (ADCVN).

(ii) The agents must, prior to the execution of transactions involving the purchase and sale of domestic government securities, corroborate the opening of special custody subaccounts, which must be identical to the one declared in the BCRA’s special deposit and cancellation account for Argentine construction (CECON.Ar).

They may also request that their customers submit the relevant supporting documentation.

(iii) Transactions for the purchase of domestic government securities with settlement in foreign currency or with settlement in domestic currency may only be arranged in bidding segments with price-time priority and settled with the funds credited to the CECON.Ar account -in foreign currency or in pesos- held by the ordering customer and credited to the special custody subaccount opened for this purpose in the ADCVN.

(iv) Government securities purchased in foreign currency must be sold in local currency and in bidding segments with price-time priority, ordering such transaction within 5 working days from the date of crediting the purchase thereof to the special custody sub-account.

(v) Government securities purchased with settlement in local currency may be kept in the portfolio.

(vi) Funds in pesos resulting from the settlement of the sale of domestic government securities must be credited to the Special Deposit and Cancellation Account for Argentine Construction (CECON.Ar).

(vii) The funds declared may be applied to the purchase of Collective Investment Products for Real Estate Development, exclusively comprising real estate projects in accordance with the provisions of Law 27.613. These may be subscribed in local or foreign currency.

On the other hand, the Central Bank of Argentina (the “BCRA”) published Communication “A” 7269 (the “Communication”), which regulates the regime for the opening of accounts by those who adhere to the Argentine Federal Construction and Access to Housing Incentive Scheme.

The Communication provides as follows:

(i) Financial institutions must set up a “special cancellation deposit account for Argentine construction (CECON.Ar)”, which may be in pesos or dollars.

The provisions established for deposits in savings banks and special current accounts for legal entities will be applied, as long as they do not contradict the special regulations.

(ii) It may be requested by individuals, undivided estates or subjects included in article 53 of the Income Tax Law that adhere to the Argentine Federal Construction Incentive and Access to Housing Regime.

(iii) Only funds included in the voluntary declaration of foreign and/or local currency submitted to the AFIP and intended for development or investment in real estate projects in Argentina may be deposited.

(iv) Accreditations may be made from 12 March and up to 120 calendar days from that date, in the manner and within the terms established by the AFIP in its regulations. More than one accreditation is allowed.

Likewise, funds declared and credited in foreign currency and originating from operations in the free foreign exchange market or with securities may be deposited in the special account in national currency.

(v) Financial institutions must inform the Federal Tax Administration (AFIP) of debits and credits made in these accounts, without interrupting the computation of the terms established by the AFIP when the funds deposited are used for the purchase of national public securities or sold in the free exchange market.

Finally, the Federal Administration of Public Revenues (AFIP) published General Resolution No. 4976/2021 (the “Resolution”), which creates the “Registry of Real Estate Projects” (REPI) to report private works that have been initiated as of 12 March 2021 or those that at that date have less than 50 % completion of the work and regulates the normalization program to reactivate the construction and real estate market.

The Resolution provides as follows:

Registration of Real Estate Projects: Individuals, undivided estates and legal entities that assume the character of developers, builders or investment vehicles of the real estate projects included in the law are obliged to register with the REPI. If the transaction is accepted, a real estate project registration code (COPI) will be generated and a project registration certificate will be issued.

Investors who have invested with holdings already declared before the Federal Administration of Public Revenues (AFIP) must include in their affidavit the COPI(s) provided by the developer, builder or investment vehicle.

Amnesty and self declaration of national or foreign currency: The requirements and conditions for adherence to the voluntary system for the declaration of holdings of national and foreign currency, and for the determination and payment of the special tax, by persons resident in the Argentine Republic are established.

The holdings of domestic or foreign currency must be deposited in a “Special Deposit and Cancellation Account for Argentine Construction (CECON.Ar)”. Then, prior to the filing of the tax return, the taxpayer must pay the special tax. The applicable rate and due date will depend in each case on the period in which the holdings have been deposited. Payment of the tax will be made by means of the electronic payment slip (VEP) as from 21 May 2021. Once the payment has been validated, the tax return must be filed.

Taxpayers who have credited their holdings in the May and June periods, but have not paid the special tax before the corresponding due date, may do so until 9 July 2021, jointly paying the compensatory interest.

Failure to pay the tax and file the tax return will deprive the taxpayer of the benefits provided by the regime and, in turn, will trigger the initiation of an ex officio assessment procedure by AFIP.

Lastly, the subjects that adhere to the holding normalization programme must inform, as a sworn statement, the COPI(s) and the amount of the investments made through AFIP’s website. Such sworn statement must be submitted before 31 March 2023 or within 6 months after having invested the totality of the funds declared in real estate projects.

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