The recently enacted Law 25,345 limits cash operations and creates a new type of payment instrument, a cheque cancelatorio. The Argentine Congress passed this law as part of a general policy designed to reduce tax evasion and prevent unregistered operations.
Law 25,345, as amended, provides that payments exceeding $1,000, or the equivalent in foreign currency, will not be effective between the parties involved in the transaction, nor through third parties, and will not be tax deductible or have any other benefit for tax purposes, unless such payments are made by means of:
- deposits in the accounts of financial entities;
- bank drafts or transfers;
- cheques or cheques cancelatorios;
- credit cards; or
- other procedures specifically admitted by the executive branch.
The cheque cancelatorio is defined as "an instrument issued by the Central Bank that constitutes a valid means to cancel money obligations".
For further information on this topic please contact Gabriel Matarasso at Marval, O'Farrell & Mairal by telephone (+54 11 4310 0100) by fax (+54 11 4310 0200) or by e-mail ([email protected]). The Marval, O'Farrell & Mairal web site can be accessed at www.marval.com.ar.
The materials contained on this web site are for general information purposes only and are subject to the disclaimer.