On June 29, 2016, the Argentine Congress approved the Plan. The Plan shall be effective once it is promulgated by the Executive Branch.

The following is a summary of the Plan:

1. Beneficiaries of the Plan

The Plan shall be applicable:

To individuals with domicile or residence in Argentina as of December 31, 2015, with respect to unreported pre-existing assets held as of the date of promulgation of the Plan by the Executive Branch.

To legal entities, foundations, "fideicomisos" and funds registered in Argentina as of December 31, 2015, with respect to unreported assets held in the last fiscal year closed before January 1, 2016.

For purposes of the Plan,  "Pre-existing Date of the Assets" shall be the above mentioned dates as they may correspond to (i) individuals with domicile or residence in Argentina; and (ii) legal entities, foundations, "fideicomisos" and funds registered in Argentina.

2. Deadline of the Plan

Benefits under the Plan can be applied up to March 31, 2017.

3. Exclusion of the Plan

The Plan shall not apply to assets held in jurisdictions identified by GAFI as high-risk and non-cooperative jurisdictions.

4. Regularization cost of the unreported assets

The regularization cost will be determined depending on when the assets will be reported and where they will ultimately be located, namely:

  1. assets located in Argentina and abroad (excluding real estates) regularized after January 1, 2017 and before March 31, 2017: 15%
  2. assets located in Argentina and abroad (excluding real estates) regularized any time before March 31, 2017: 10% if the payment of the regularization cost is made with Public Bonds "BONAR 17" and/or "GLOBAL 17".
  3. assets located in Argentina and abroad (excluding real estates) regularized before December 31, 2016: 10%
  4. real estates located in Argentina and abroad: 5%
  5. assets located in Argentina and abroad for a value greater than $ 305,000 (approximately, US$ 21,000) but lower than $ 800.000 (approximately, US$ 55,000): 5%
  6. assets located in Argentina and abroad for a value lower than $ 305,000 (approximately, US$ 21,000): 0%
  7. funds located in Argentina and abroad regularized before September 30, 2016: 0% if the unreported funds are used to subscribe a non transferable/non negotiable Public Bond to be issued on or before September 30, 2016 in US dollars (a) with a maturity date in 3 years, and (b) with no interest payment.
  8. funds located in Argentina and abroad regularized before December 31, 2016: 0% if the unreported funds are used to subscribe a Public Bond (non transferable/ non negotiable during the first 4 years) to be issued on or before December 31, 2016 in US dollars (a) with a maturity date in 7 years, (b) with a 1% interest payment, and (c) with the benefit to exempt from the regularization cost an amount equivalent to 3 times the amount used for the subscription of the Public Bond.
  9. funds located in Argentina and abroad regularized any time before March 31, 2017: 0% if the unreported funds are used to subscribe/acquire quotas in Argentine mutual funds to invest in instruments for the financing of: (a) infrastructure projects, (b) production projects, (c) real estate projects, (d) renewable energy projects, (e) small and medium size companies, (f) mortgages, and (g) regional economies. These investments must be kept for a minimum period of 5 years.
  10. funds deposited in Argentine or non-Argentine financial entities during the 3 months previous to the "Pre-existing Date of the Assets" as long as (a) they were used to acquire real estates or movable assets located in Argentina or abroad, or; (b) they were used as capital of enterprises, or; (c) they were lent to income taxpayers domiciled in Argentina. In any of the above mentioned cases, the investment must be maintained for a period not less than 6 months or up to March 31, 2017, whichever is the longest.

5. Benefits of the Plan

The regularization implies the forgiveness of taxes not paid in previous fiscal years, as well as the forgiveness of criminal tax and exchange control implications with regard to the unreported assets.

The regularization shall be valid even when the assets are registered in the name of the taxpayer´s spouse, or of any of the taxpayer´s ascendants or descendants in the first or second degree of consanguinity or affinity, or of any other Argentine third party. This benefit will apply only if the reported assets are in the name of the owner on or before the deadline to file the tax returns corresponding to fiscal year 2017.

With respect to non-Argentine legal entities, non-Argentine trusts, non-Argentine foundations, non-Argentine associations, or any other non-Argentine entity the owners or beneficiaries of which are Argentine persons entitled to the benefits of the Plan; such Argentine owners or beneficiaries will be entitled to report in their name the underlying unreported assets as long as such assets were owned by any of the above mentioned vehicles as of December 31, 2015.

6. Requirements of the Plan

The following are the requirements to make the disclosure of assets:

  1. filing an affidavit evidencing the holding of funds/shares/bonds or the like in a foreign country;

To such effect, a bank statement or the like sent by mail or electronically by the foreign entity must specify:

name and domicile of the foreign entity;

  1. number of the account;
  2. name and domicile of the owner of the account;
  3. evidence that the account was opened before the "Pre-existing Date of the Assets";
  4. amount of the account in foreign currency as of the "Pre-existing Date of the Assets"; and
  5. place and date of the issuance of the statement.
  1. filing an affidavit and transferring the funds/shares/bonds or the like to Argentine entities and depositing them in the name of the owner;

To such effect, the receiving Argentine entity shall issue a certificate stating:

  1. name and domicile of the owner of the account;
  2. identification and domicile of the foreign entity;
  3. amount of the transfer in foreign currency; and
  4. place and date of the transfer.

 

  1. filing an affidavit for the disclosure of other assets;
  2. filing an affidavit and depositing the funds held in cash in the name of the owner with Argentine financial entities for a period not less than 6 months or up to March 31, 2017, whichever is the longest. These funds could be used before the expiration of the period of 6 months only to acquire real estates or movable assets.

The Plan shall not exempt financial entities or other individuals from their obligations under the law preventing money laundering, terrorist financing or any other crimes or offenses provided for in non-taxation special laws.