Doing business in

In association with: Contents

Introduction ...... p3

Legal overview ...... p4-7

Conducting business in Argentina ...... p8-9

Tax system ...... p10 -15

Labour ...... p16

Audit ...... p17

Trade ...... p18-19

Finance ...... p20-21

Infastructure ...... p22

2 Introduction

This guide to doing business in Argentina will provide foreign investors with an insight into the key aspects of undertaking business and investing in Argentina. The country’s large, qualified and young workforce and its vast amount of natural resources make it especially attractive for overseas investors.

With a Gross Domestic Product world’s main producers of food private sector, the economy grew of more than USD611.76 billion, thanks to its agriculture and cattle 2.7 per cent in 2013. Nevertheless, Argentina is one of the largest breeding. Argentina is at the top during the first six months of 2014 economies in . The of world producers of sunflower GDP only grew by 0.1 per cent and country is a member of the Latin crops, mate, lemons and soya bean the forecasts for 2014 range from -1 American Integration Association oil. Additionally the country has a per cent to -3 per cent. and of the Southern Common very large automotive, textile and Market; it enjoys good relations appliance industry. While the country has certain with most countries in the region exchange control policies in place, and represents Latin America with Argentina has a large middle foreign investors do not need and at the G-20. class that has increased from previous approval or licenses and 34 per cent to 53 per cent of the receive the same treatment as Argentina’s economy covers a population in the last ten years. The local investors. wide spectrum of commercial and Argentine economy has faced some industrial activities. The country challenges in recent times; however, is characterised by its natural thanks to the incentives injected by The information in this publication is resources; indeed, it is one of the the government into the public and current at December 2014.

3

Legal overview

Political and legal system be appointed by the President with When personal data is requested, Argentina is a federal republic the approval of the Senate. Judges the data subject is expected to get a where representatives are directly can only be removed if they are prior notification of: chosen by the people. The federal found guilty of serious crimes by a government is divided in three jury formed of national legislators, • The purpose for which the data branches: the Executive branch, magistrates and lawyers. shall be processed led by the President, the Legislative • The recipients of the information branch, represented by the National The provinces each have their own • The existence of the relevant Congress and the Judicial branch, constitution to organise their powers. personal database and the owner represented by the Courts of The executive branch is led by a of that database Justice and headed by the Supreme governor elected by the inhabitants Court. The governments of the of the province, the legislative branch • Whether the provision of different provinces share a similar has one or two branches depending information is compulsory or organisation. on the province and the judicial discretionary branch is independent. • The consequences of providing The President is elected for four the information, the refusal to years and can be re-elected for Data protection do so or the inaccuracy of such one additional term. Presidency In Argentina data protection is information is elected by direct vote through regulated by the Data Protection • The data owner’s right of universal suffrage. Presidential Act (DPA) of Argentina which data access, rectification and elections will take place during 2015 entered into force in 2000. The suppression and the current authorities cannot be Data Protection Agency is the re-elected for a new term. regulatory body. Non-compliance with the Data Protection Act can result in The National Congress is formed The Act defines personal data as administrative and criminal penalties. by two chambers, the Senate ‘information of any kind referring Administrative sanctions can consist and the Chamber of Deputies. All to certain or ascertainable physical of a warning, suspension, closure of 257 members of the Chamber of persons or legal entities’. Processing a database or a fine ranging between Deputies are elected directly by personal data requires express ARS 1.000 and ARS 100.000 (or proportional representation for consent from the data subject. The its equivalent in USD from USD 117 a four-year period. The Senate disclosure of personal data is only to USD 11.700 approximately). The is formed by representatives of possible if it is in the legitimate criminal penalties include: all 23 provinces and the City of interest of the database owner and Buenos Aires. Each jurisdiction the data subject has consented. • Imprisonment for up to two is entitled to three Senators, two years for knowingly inserting for the majority political party and In Argentina, the creation of false information into a personal another from the minority political personal databases that directly data base party. Senators are elected for a or indirectly reveal sensitive • Imprisonment for up to three six-year period by direct vote. Both personal data is strictly prohibited. years for anyone who knowingly Deputies and Senators can be Nevertheless, the Catholic Church, provides a third party with re-elected indefinitely. Every two political parties and trade unions can false information contained in a years, half of the Deputies and a keep a register of their members. personal database third of the Senators are re-elected Sensitive personal data can only or renewed. Since 1991, at least one be processed where there are • Imprisonment for up to two third of the electoral positions must circumstances of general interest years for hacking into a personal be occupied by women. authorised by law or for scientific data base purposes as long as the data owner • Imprisonment for up to two The Judicial branch is formed by cannot be identified from that years for disclosing confidential the Supreme Court of Justice, the information. Finally, data containing information from a database National Council of the Magistracy information about criminal and the lower courts. The Council offences can only be processed by The penalties can be higher if the of the Magistracy publicly calls for competent public authorities for the offence is committed by a public candidates and shortlists judges to purposes established by law. officer in the exercise of his duties.

4 Exchange controls is regulated in Article 303 of the financing. Other authorities such After the US Dollar – Peso parity Argentine Criminal Code. The as Argentina’s Central Bank, the was abandoned in 2002, the offence includes the conversion, Securities Exchange Commission Argentine government adopted transfer, administration, sale, and the National Superintendence a set of emergency measures concealment and any other method of Insurance also regulate money regarding foreign transactions. of putting on the market the laundering. The country operates a complex proceeds of crime to make their foreign exchange control regime. origin appear as lawful. Additionally, The powers of the Financial The transfer of funds, both in and it is an offence to receive money Intelligence Unit include: out of the country, must be made or any other goods arising from according to the Argentinean Central a criminal offence even if the • Request any type of information Bank rules. original offence took place outside that it considers useful to fulfil Argentina (as long as the original its anti-money laundering and Proceeds of exports must act was a punishable offence in the terrorist financing duties be repatriated within the foreign jurisdiction). • Receive voluntary reports and pre-established terms and foreign analyse suspicious transactions currency brought into Argentina Money laundering offences are • Inform the Public Prosecutor’s will be immediately exchanged for punishable with prison sentences office if it considers there is a Argentinean pesos at the official of between three and ten years suspicious transaction exchange rate. and a fine of two to ten times the amount of the transaction. The • Ask the Public Prosecutor’s Office Further foreign exchange restrictions penalties can be higher when to request a search warrant, determine that, in case of a loan the money launderer commits precautionary measures or from a foreign company, 30 per cent the offence habitually or as part the seizure of any documents should be deposited in an ‘interest of a group and when the offence necessary for the investigation free’ account for at least 365 days. is committed by a public official • Act as a claimant before the court Only loans granted for investments when performing his duties. in money laundering and terrorist in fixed assets and inventory are However, if the value of the assets financing cases exempt from the above requirement. does not exceed ARD300,000, the • Request assistance from other offence is punishable with a prison governmental agencies or ask for The Central Bank (BCRA) and the sentence of between six months international cooperation Federal Tax Authority (AFIP) must and three years. approve payments abroad. When Individuals or business entities that the beneficiary of these payments In a money laundering case, the fail to comply with their obligations in is domiciled in a ‘tax heaven’, in property object of investigation relation to the Financial Intelligence accordance with the official blacklist, can be confiscated during the Unit can be punished with fines that additional information is normally proceedings even without a criminal can amount to one to ten times the required regarding the beneficiary’s conviction as long as the unlawful value of the goods or the operation to activities. origin of the goods has been which the violation is related (as long proven. Additionally, magistrates as the act does not constitute a more Non-compliance with the exchange can order a variety of precautionary serious crime). regulation set forth by the measures from the beginning of competent authorities can result in the proceedings. Multiple resolutions from the Central administrative and criminal liabilities. Bank and the Financial Intelligence Argentina’s Financial Intelligence Unit have increased due diligence Money laundering regulations Unit (UIF) is the main authority requirements. In Argentina, money laundering charged with the prevention of, and terrorist financing are and investigation into, money Intellectual Property Rights regulated by law 25.246 and laws laundering and terrorist financing. Argentina recognises the 26.683 and 26.734 which added This special unit is in charge of importance of protecting Intellectual anti-money laundering provisions the analysis and transmission of Property Rights (IPR), which include to the Argentine Criminal Code. information for the prevention of patents, trademarks, copyright and The money laundering offence money laundering and terrorism industrial designs. The National

5 Institute of Intellectual Property (INPI) is the authority responsible for the registration of intellectual property. COPYRIGHT

In Argentina, Copyright is regulated by Law No 11,723 Argentina is a member of the World Intellectual Property which protects all scientific, literary, artistic or didactic Organisation and the World Trade Organisation. works. It ‘expressly’ protects computer software, data Additionally, Argentina is part of various international compilations and other materials irrespective of the treaties concerning intellectual property rights: means of reproduction. • WIPO Treaty on Copyright of 1996 Protection To be protected, all Argentine • WIPO Treaty on Performance and Phonograms of 1996 granted works need to be registered with • The Agreement on Trade Related Aspects of Intellectual the National Copyright Office. Property Rights Failure to register suspends the • The Paris Act of 1971 protection with regard to the economic rights set by the law • The Universal Copyright Convention (any third party can use the work • The Rome Convention freely until registered). While foreign works do not need DESIGNS to be registered to be protected, they need to comply with the In Argentina designs are protected by Executive formalities set forth in the Order No 6,673/63. Registered designs include two international treaties to which dimensional industrial designs and three dimensional both the Argentine Republic and industrial models. The protection is given to the the country of origin of the work appearance or shape of an industrial product. To be are parties. If there is no treaty able to register a design, it must have an ornamental applicable to both parties, the character to it. author must prove that he has complied with the formalities in Protection Registering a design gives the the country of initial publication. granted owner a property right over the design. Holding a design Infringements The author and his successors right provides the owner the may petition any court for exclusive right to use it and to permanent injunctions, damages prevent any third party using it and publication of rectifying without consent. remarks. The filing must be made with Duration As a general rule, the rights are the INPI. granted for life. The author’s Infringements In the case of infringement, successors have rights for 70 the owner of a design right years from 1 January following can request before the federal the author’s death. courts remedies that include: a Anonymous works published by permanent injunction, damages, legal entities are protected for 50 accounting for profits and forced years from their publication date. sale or destruction of infringing Cinematographic work is products. Infringement protected for 50 years from of design rights can carry the date of the last author’s criminal penalties including death. Unless otherwise imprisonment. agreed, the law considers the following individuals as authors: Duration Once obtained, design rights scripter, producer, director and are protected for a period of five soundtrack composer. years from the date of filing of the application. It can then be Copyright of photographic work renewed twice for periods of lasts 20 years from the date of five years. publication of the work.

6 PATENTS

Patents protect inventions which can be applied in an industrial environment. For a patent to be granted, the invention must be new, have an inventive step which is not obvious to someone with experience in the subject and capable of being used in some kind of industry. Patents and Utility Models are currently governed by Law No 24,572

Protection granted Patents can only be granted upon registration with the federal agency for industrial property (INPI). Some of the exclusive rights granted to the patentee consist of excluding third parties from the manufacture, use, offer to sell, sale and importation of the patent.

Infringements Infringing a patent means manufacturing, using, selling or importing patented products or processes without the owner’s permission. In case of infringement, the owner of a patent is granted protection by the federal courts against third parties: using the invention, manufacturing the invention, marketing the invention, importing the invention. Some of the remedies offered by the courts include: a permanent injunction, damages and accounting for profits. Violation of a patent may carry criminal penalties including imprisonment.

Duration 20 years from the filing date and cannot be renewed. Three years after the grant of the patent or four years from the filing, individuals are entitled to request an authorisation to use the invention without the patentee’s authorisation if it has never been used or the use has been interrupted for more than one year. Utility models are protected for a 10-year term.

TRADE MARKS

A trade mark must be a sign capable of distinguishing goods and services of one undertaking from those of another undertaking. Those signs can be: words, personal names, designs, letters, numeral slogans, sounds, smells, signs and distinctive colours.

Protection granted The owner can obtain protection in Argentina by registering the trademark at the federal agency for industrial property (INPI). Before registration a trade mark is published so third parties can oppose. Trademarks are subject to examination by the Trademark Office examiners. While unregistered trademarks are not legally protected, certain rights have been recognised by the courts to avoid fraud and bad faith. Prominent trademarks have been granted special protection by law and court decisions. A trade mark is considered to be null and void when it is registered by anyone who, when applying for registration, knew or should have known that the trademark belonged to a third party.

Infringements A trade mark infringement action can be brought in the following grounds: • Counterfeiting or fraudulent imitation of a registered trade mark or trade name • Use of a counterfeit or a fraudulently imitated registered trade mark • Offer for sale or sale of a counterfeit imitated registered trade mark

In the case of infringement, the owner of a trade mark can request before the federal courts remedies that include: a permanent injunction, damages, accounting for profits and forced sale or destruction of infringing products. Infringement of marks can carry criminal penalties, including imprisonment.

Duration 10 years (registration can be renewed for further periods of 10 years provided the mark was used during the second half of the term).

7 Conducting business in Argentina

Business entities Shareholders The appointment of a syndic is Foreign companies or individuals Limited liability companies need mandatory when the capital of the wanting to do business in Argentina a minimum of two partners and entity exceeds ARS10 million. will need to decide under which can have a maximum of 50. Their form they want to operate. liability is limited to their capital Corporation Businesses can be established contributions. There are neither Formation as sole proprietorships, general nationality nor residence restrictions Organisations wishing to set up partnerships and cooperatives; to become a partner. a Corporation in Argentina need however, the most common forms to hold an inaugural meeting of of business are corporations, Capital requirements shareholders to approve the draft limited liability companies and While there are no minimal capital of the statutes, nominate a board branches of foreign companies. requirements, capital contributions of directors and elect a syndic, These entities are regulated by must be deemed appropriate for if applicable. A summary of the Business Companies Law 19,550; conducting the company’s business statutes needs to be published in corporations and listed companies activity. The Superintendence of the Official Gazette. Additionally, are subject to additional rulings. Corporations can decide that the the deed of the inaugural meeting company needs to have a higher and the mentioned publication must It is important to note that currently1 capital than the one initially decided be registered at the Public Registry Argentine Commercial Law does not by the partners. The capital must of Commerce. permit the incorporation of entities be totally subscribed at the time with a sole partner, at least two Shareholders of incorporation; 25 per cent must partners are required. Moreover, Corporations must have a minimum be paid at the same time with the the Corporate Authorities of Buenos of two shareholders but there is balance due in the two following Aires, where most companies no maximum limit. Shareholders’ years. Although contributions in kind are incorporated, considers that responsibility is limited to their are permitted, they must be fully there are not two partners unless capital contribution. A minimum paid at the time of incorporation. the second one holds at least of two shareholders must attend The capital stock must be divided between five and ten per cent of the the inaugural meeting to set up into quotas of equal value. corporate capital. This requirement the corporation and subscribe is not applicable to branches of the capital. Management foreign companies as they are considered to be representatives of A Limited Liability Company can be Capital requirements the foreign company. managed by one or more managers Corporations must have a minimum who do not necessarily need to capital of ARS100,000. Capital Foreign companies can be be partners. When there is more contributions must be deemed shareholders of Argentine than one manager, the company appropriate for conducting the corporations or quota holders of by-laws must explicitly explain how company’s business activity. The Argentine limited liability companies they should exercise their powers; Superintendence of Corporations as long as they are registered with that is, individually, alternatively can decide that the company needs the Public Registry of Commerce. or indistinctly. There are no to have a higher capital than the one nationality restrictions for managers; initially decided by the partners. The Limited Liability Company nevertheless, the manager or the capital must be totally subscribed at (LLC) majority of the managers must be the time of incorporation; 25 per cent Formation residents in Argentina. must be paid at the same time with Organisations wishing to set the balance due in the two following up a Limited Liability Company The method to adopt company years. Although contributions in kind in Argentina need to execute a decisions must be set by the are permitted, they must be fully partnership contract deed, publish by-laws; nonetheless if one of the paid at the time of incorporation. a summary of the contract in the partners has the majority of votes, The capital stock must be divided Official Gazette and register it in the at least two partners need to vote to into nominative shares and Public Registry of Commerce. amend the bylaws. non-endorsable of equal value.

8 Management • A copy of the deeds and rules company is permitted to conduct A board of directors is the body that created and govern the business in the jurisdiction of responsible for the management of corporation incorporation the Corporation. Many corporations • Minutes of the parent company • A certified document that only have one director; however, a meeting where it was decided evidences that the foreign three-member board is required for that a branch was to be company meets at least one of certain types of corporations such established, its capital and the following conditions: as listed companies or those with a the appointment of its legal capital that exceeds ARS10 million. representative –– That it has one or more There are no nationality restrictions • A power of attorney authorising branches outside Argentina for directors; nevertheless, the the applicant to represent the –– That it holds equity holdings director or the majority of directors corporation or interest in companies must be residents in Argentina. All incorporated or registered directors need to establish a special The branch is the same legal entity outside Argentina domicile in Argentina. as the parent company; therefore, –– That it owns fixed assets at the parent company is liable for its place of incorporation or The board of directors must appoint the obligations of the branch with registration a President; decisions must be its worldwide assets. As a general adopted by the absolute majority of rule, branches do not need to have a The value of fixed assets and of the board or by special majorities set minimum amount of capital. equity holdings should be evidenced forth in the company’s bylaws. by means of the company’s financial Branches must keep separate statements or a certification signed Directors must act honestly and accounts from the parent and by the officer of the company. in good faith in the best interest are required to file accounts of the company. They can be held annually with the Public Registry Foreign companies wanting to personally, criminally or civilly liable of Commerce. become shareholders of Argentine if they fail to comply with their corporations or quota holders of legal duties. Foreign companies can be Argentine limited liability companies registered as foreign shareholders need to be registered with the Branch of a foreign corporation/ or can be registered as a branch Public Registry of Commerce. Registration of foreign legal as long as they provide the Additionally, they need to comply entities following documents: with two requirements: Foreign entities can conduct business in Argentina through a • A certified copy of the company’s • Perform a significant business branch. The application to register articles of incorporation activity outside Argentina a branch of a foreign company • Not be banned from carrying must be made by the appointed • A certificate of good standing out that business at the place representative in Spanish. It • A certified copy of its bylaws of registration needs to be notarised and • A certified document that filed locally. It must include the evidences that the foreign following documents:

9 Tax system

Foreign investors are likely to be income subject to certain limits affected by the following main and restrictions. Some examples of taxes: deductible expenses include:

• Corporate Income Tax • Directors’ fees up to 25 per • Value Added Tax cent of accounting profit after tax or ARS12,500 per individual • Personal Income Tax (whichever is higher) • Net wealth Tax • Donations made to certain • Import and Export Duties entities: up to five per cent of the • Other transactional taxes donor’s net taxable profits • Representation expenses if they Corporate Income Tax (CIT) are documented up to 1.5 per Scope cent of the amount of salaries paid Companies resident in Argentina, during the fiscal year including branches of foreign • Taxes levied on goods and companies, are liable to income tax activities that generate on a worldwide basis regardless taxable income of the source of income. A company is resident in Argentina • Royalties for patents and if it is incorporated in Argentina. trademarks paid to non-residents Non-resident companies only (limited to 80 per cent of the pay CIT on their Argentine source amount paid) of income. • Rental payments and automobile expenses (with some restrictions) The corporate income tax rate is • Interest paid on loans used in 35 per cent. the normal course of business is generally deductible subject to permitted. Certain types of losses In addition, there is an annual Tax thin capitalisation rules on Minimum Presumed Income such as foreign source losses and losses on derivatives transactions (TMPI). The tax is imposed on Depreciation can only be offset against profits of resident companies and branches Depreciation is generally the same kind. of foreign companies at a rate of computed on a straight-line basis one per cent (although special rates over the estimated or standard Administration apply for certain companies). The useful lives of the assets. The The tax year is the accounting year TMPI is payable to the extent is following rates apply: exceeds regular CIT for the year and which normally ends on the 31 of December. Taxpayers subject to can offset regular income tax for the • Two per cent for buildings following 10 years. CIT are obliged to make 10 advance • 10 per cent for machinery payments; the first one amounts to and equipment Taxable income 25 per cent of the preceding year tax Taxable income is defined as the • 20 per cent for tools and vehicles and the rest of the payments to 8.33 difference between the accounting (with a cap for vehicles) per cent. The tax payments shall profit and deductible expenditures. be made on a monthly basis from Dividends received from another Intangible assets without a definite the sixth month after the end of the resident company are exempt from life may not be amortised for accounting year. The payment date income tax. income tax purposes. depends on the company’s taxpayer registration number. Companies Deductions Tax losses must file their tax returns and pay Taxpayers are allowed to deduct Net operating tax losses may be any balance due on the fifth month from their taxable income expenses carried forward for up to five years. after the end of the accounting year. incurred when producing taxable However, losses carry-backs are not Companies must pay interest on any

10 late payments. Advanced payments There are no provisions within dividend payment. of TMPI may be required. corporate tax law addressing the concept of group consolidation. The Withholding tax Capital gains filing of consolidated returns is not Withholding tax is charged on Argentina does not operate a allowed and there are no provisions dividends, interest and royalties paid separate ‘capital gains tax’ regime. for relief of group losses. to non-residents. Capital gains will therefore form a part of a firm’s taxable income and Thin capitalisation rules Royalties and technical will be taxed at the standard CIT Thin rules apply as a restriction on services fees rate. Gains derived from the sale of the deductibility of interest arising • Royalties for the exploitation of shares by an Argentinian entity are from financial debts contracted by copyright paid to a non-resident subject to income tax. the company subject to income are subject to a 35 per cent tax with controlling non-resident withholding tax on 35 per cent There are specific rules for the gains companies. Except for banks of the gross payment as long as derived from the sale of shares and other financial institutions, the work is registered with the of an Argentine company by a all companies are subject to thin National Copyright Bureau non-resident; they are subject to a 15 rules. This means that when loans • Royalties for the exploitation per cent tax. The seller can calculate have been granted by controlling of patents to non-residents the tax on 90 per cent of the gross foreign entities, interest is not are subject to a 35 per cent proceeds or on the real gain. deductible if the resident company’s withholding tax on 80 per cent debt-to-capital ratio exceeds 2:1. of the gross payment as long as Groups The excess interest is treated as a the agreement under which the

11 royalties are paid is registered transaction do not reflect normal income tax only on income arising with the INPI market prices in Argentina. • Film and television royalties paid to non-residents are subject to a Indeed, any transaction between Any individual is considered a 35 per cent withholding tax on 50 related companies or unrelated resident for tax purposes if he per cent of the gross payment. companies located in low-tax satisfies one of the following jurisdictions is presumed not to be at • Fees for technical assistance, conditions: arm’s length unless the contrary is engineering or consulting services proved. If the tax payer is unable to paid to a non-resident are subject • Individuals that are native and prove that the price paid is one they to a 35 per cent withholding on 60 naturalised Argentine citizens would have paid in an arm’s length per cent of the gross payment if • Foreign individuals that have been transaction, tax authorities can make the agreement is registered with granted residence in Argentina transfer pricing adjustments to the the INPI and the services cannot income and expenses allocated • Foreign individuals that remain be obtained in Argentina. If these between the parties. in the country for 12 months conditions are not met, the 35 per or longer under temporary cent rate is applied to 90 per cent Argentina has adopted the authorisation of the final payment Organisation for Economic Co-operation and Development Individuals belonging to the third Dividends (OECD) transfer pricing guidelines. category can be considered as Dividends paid are subject to a: These include the acceptable non-resident if they have not been 10 per cent withholding tax and methods of determining the granted permanent residence 35 per cent withholding tax if “arm’s length principle”, such as, and they can prove that they do dividends exceed the payer comparable uncontrolled price, not intend to stay in the country company’s taxable income. cost plus, resale price, comparable permanently. profits and profit split. Taxpayers are Interest required to use the method that best Additionally, those individuals that A withholding tax rate of 15.05 per reflects the economic reality of the are in Argentina for work-related cent applies to the following type of transaction. reasons and stay in the country interest payments: for less than five years are also • Interests on loans obtained by a Controlled foreign companies considered to be non-resident. The national financial institution (CFC) same rule applies to the members In Argentina, the CFC regime of their family that travel with them. • Interests on loans granted by requires resident shareholders to foreign financial institutions include in their taxable income Taxable income located in jurisdictions not any passive income derived Taxable income generally considered as tax-havens under from a company resident in comprises various types of the Argentine regulation a non-cooperative country in income: self-employment income, which they have direct or indirect salaries and wages and income If the conditions above are not met, participation. The latest list of the withholding tax rate applicable from investments. countries considered ‘cooperative’ for interests paid to non-residents is for tax purposes was issued by the 35 per cent. Deductions tax authorities on January 2014. If a When computing the tax that country is not included in this list it is Transfer pricing needs to be withheld from their considered as non-cooperative. The Related party transactions must employees’ salaries, Argentine CFC regime only applies to passive be conducted at arm’s length and employer are entitled to deduct the income that comprises at least 50 must comply with the transfer following expenses: per cent of the income of the foreign pricing rules and documentation company concerned. requirements. In Argentina, transfer Social security contributions pricing rules apply if: • Medical insurance payments Personal income tax (PIT) within certain limits Individuals liable to • A related company is Argentine tax • 40 per cent of invoiced medical located abroad Resident individuals are subject expenses (up to a maximum of • A non-related company is located to personal income tax on their five per cent of the taxpayer’s in a low tax jurisdiction worldwide income, non-resident annual net income) • The prices agreed in the individuals are liable to personal • Travel expenses incurred by

12 salespeople (they need to follow losses can only offset foreign-source income. estimates published by the tax authorities) Tax rates and bands – 2014 • Donations to charities and to the Argentina applies a progressive tax rate that ranges from nine per cent to government (up to a maximum 35 per cent. Non-residents living in the country for less than six months of five per cent of the taxpayer’s are subject to final withholding tax at a tax rate of 24.5 per cent and they annual net income) are not required to file tax returns. • Burial expenses up to ARS996,36 per year Residents – employment and business income • Life insurance premiums up to Annual taxable income ARS996,36 per year Exceeding Not exceeding Tax on lower Rate on • Mortgage interest for the main ARS ARS amount ARS excess % residence up to ARS20,000 per year 0 10,000 0 9 • Employer contributions related 10,000 20,000 900 14 to domestic help personnel up to 20,000 30,000 2,300 19 ARS15,552 per year 30,000 60,000 4,200 23 • Taxes on bank debits and credit 60,000 90,000 11,100 27 • Contributions made to mutual guarantee companies 90,000 120,000 19,200 31 120,000 – 28,500 35 There are special family deductions and allowances; individuals can Tax returns deduct the following amounts: The tax year is the calendar year, returns must be filed between 15 and 21 April of the following year. No extensions are granted to file • ARS17,280 for a spouse the returns. Individuals who only have employment income that does not • ARS8,640 for each child residing exceed ARS144,000 annually do not need to file an income tax return in Argentina for longer than six given that tax is held at source by their employer. months during the tax year. To qualify, the dependant must not Self-employed individuals must register with the tax authorities and file earn more than ARS15,552 per their returns annually in April for the previous calendar year. year • ARS6,480 for any other Individuals with income other than wages (including self-employment dependant residing in Argentina income) have to make payments every two months from June to for longer than six months during February based on the amounts paid on the previous tax year. Any the tax year as long as he does amounts withheld are treated as advanced payments. not earn more than ARS15,552 per year Married couples are taxed separately on income derived from personal activities, on assets acquired before marriage and assets acquired after An additional ARS15,552 per year marriage with income earned from personal activities. deduction is granted to those Resident tax-payers are entitled to tax credits for income tax paid individuals that live in Argentina for abroad; Argentina has double tax treaties with the following countries: more than six months during the Australia, , , Brazil, Canada, Denmark, , , calendar year (that increases to ARS , , , Norway, Russian Federation, Sweden and 74,649 if they are employees). the United Kingdom. All the deductions listed above are also applicable to self-employed individuals. Self-employed individuals can also deduct any expenses incurred in producing income. Business losses of self-employed persons may be carried forward for five years; however, foreign-source business

13 Net Wealth Tax There is finally another regime for not residents, applicable This tax is applicable to: over the value of securities at a rate of 0.5 per cent that applies over the difference between the assets and • Individuals domiciled in Argentina (over assets located in liabilities of the company, as at 31 December of the Argentina and in other countries) corresponding year, related to each stockholder. • Individuals domiciled in other countries (only over assets located in Argentina) The share issuer (a corporation) is responsible for the tax paying and it will have the right to recover from the Individuals domiciled in Argentina with total asset of more shareholders the amount paid to the fiscal authorities. than ARS305,000 are required to pay the net wealth tax at the rates listed below: It must be noted that foreign individuals moving to Argentina for less than five years for work reasons are not considered domiciled in the country. Total value of taxable assets Exceeding Not exceeding Tax on lower Real estate tax ARS ARS amount ARS Sales of real estate are subject to a transfer tax of 1.5 per 305,000 750,000 0.50 cent on the sale price.

750,000 2,000,000 0.75 Other Taxes 2,000,000 5,000,000 1.00 Value Added Tax (VAT) 5,000,000 – 1.25 The Argentine VAT is due on the sales value of products, most services and on the import of goods and services. Deposits in local banks and public bonds are exempt from While the general rate is 21 per cent, certain items are this tax. exempt and others are subject to a reduced rate of 10.5 per cent or an increased rate of 27 per cent. With regards to the non-residents, the Law establishes that whoever has possession, use, eligibility, disposition, VAT administration deposit, hold, management or store of any asset or All businesses making taxable supplies in Argentina property, subject to the Tax on Assets and that belongs through a permanent establishment are required to to individuals established abroad, should pay the tax as a register for VAT. Registration is also mandatory for local substitute. individuals if their annual turnover from the supply of goods exceeds ARS600,000 and the annual turnover In addition, this applies for certain assets and certain legal from the supply of services exceeds ARS400,000. If entities that are located in countries without a system of the amount is lower taxpayers can choose to register a nominative shares. simplified tax regime instead of VAT.

The applicable tax rates are 1.25 per cent or 2.50 per cent. Tax payers are required to submit VAT returns on a monthly basis. Returns and payment in full are due Current situation for Non Residents between the 12th and the 22nd day of the month • Government securities following the end of the return period. Return liabilities must be paid in ARS. VAT payments can be offset by a Individuals or Legal Entities: Not applicable credit balance arising from another tax collected by the • Corporate bonds Federal Administration for Public Revenues. Penalties apply for errors and omissions in VAT accounting. Individuals or Legal Entities: Not applicable provided that are issued under Law 23576. • Equities

14 Rate (%) Applicable to • 0.6 per cent of deposits and withdrawals in banks accounts opened in local financial entities 0 The goods exempt from VAT are: books, • 1.2 per cent of any transactions made in a bank without newspapers, shares, bonds and securities, using a bank account planes for the transportation of passengers, commercial activities and defence and 34 per cent of the credit tax or 17 per cent of the tax security, export of goods and services. amount paid each month can be offset against income tax, The services exempt from VAT are: medical depending on the type of account. services, transportation of persons and freight including international transportation, Stamp tax transport by taxi (if the travel is less than 100 This tax is levied in each one of the country’s jurisdictions. km), cash deposits with financial institutions, It is levied on juristic acts that involve a flow of wealth negotiable bonds publicly offered, services between the individuals involved in the legal relationship. of directors, controllers and members of It applies to acts such as contracts and agreements, the board of listed companies, the letting of deeds, mortgages and other obligations and other financial property when the monthly rent is less than obligations documented in writing. The rates normally vary ARG1,500 or when the property is let for depending on the jurisdiction and the type of instrument meetings, conferences or similar services. involved. The average rate is one per cent of the economic 10.5 Medical services in certain cases, supply of value of the contract. newspapers, transport services by taxi if the distance travelled is more than 100 km, the Turnover tax supply of certain services related to dwelling Each one of the Argentine jurisdictions imposes a tax on houses, the supply of certain services related the various stages of production and selling processes. It to soil and farming activities, construction of generally applies to gross revenues accrued each month housing, interests and commission on loans and while the rates and assessment procedures vary granted to registered taxpayers by financial depending on the jurisdiction, the approximate rates are: institutions. • 3 - 5 per cent for commercial activities 27 Telecommunication services (except radio broadcasting and services rendered by news • 1.5 - 4 per cent for industrial activities agencies), the supply of gas and electrical • 1 - 3 per cent for primary activities power (except illumination), the supply of current water and sewage services including The export of goods is generally excluded and certain draining and cleaning of wells. industries, especially small industrial activities are exempt or subject to a reduced tax rate.

Excise taxes Import and export duties The excise tax is a federal tax on specific good and Argentina is a member of Mercosur which has a Common services such as: cigarettes, tobacco, alcoholic beverages, External Tariff that ranges from zero to 35 per cent. soft drinks, automobiles, ships and aircraft, mobile phone In addition to the free trade agreements with a range services, insurance premium, jewellery, precious stones of countries under Mercosur, Argentina grants certain and some electronic products. The tax is levied on the sale duty breaks to countries members of the Latin America price and the rate depends on the category of good. Integration Association (ALADI). Finally Argentina applies minimum specific import duties on a range on imports Tax on bank accounts credits and debits from all destinations apart from Mercosur countries. This tax is levied on financial transactions. A large variety of financial transactions are taxable, these include: money Exports of all goods are subject to export duties, the rate remittance, money orders, each debit and credit, cheque varies from five per cent to 45 per cent depending on the deposit on savings account, etc. The applicable rates are: merchandise.

15 Labour

In Argentina, employment law the total monthly remuneration In addition to the social security applies to all workers regardless received by an employee working costs, the employer has some other of their nationality as long as full-time be less than the minimum costs such as life insurance and the employment relationship is living wage. work risk insurance. conducted in the country. There are several sources of employment Leaves Healthcare and benefits law, including: the Constitution, Annual leave the Employment Contract Act, the Employees that have worked for an Health care Workday Act, the Employment employer for more than six months Basic health care is covered by Injuries Act, the Mandatory are entitled to two weeks’ annual the Social Security through the Pensions Act and the Collective leave. The holiday entitlement contributions made by employees Bargaining Act. increases with the length of and employers. continuous employment to a These laws govern all employment maximum of five weeks per year. Thirteenth salary Bonus relations in Argentina regardless All employers must pay an annual of the place of incorporation of the Additionally, there are 12 public bonus called ‘thirteenth salary’. The employer or the place in which holidays per year. As many of these bonus is paid in two instalments in the contract was concluded. The holidays are catholic, there are June and December. Each payment relevant labour authority is the special provisions for employees must be at least 50 per cent of the Ministry of Labour, Employment belonging to other religions. highest monthly salary received in and Social Security. Depending on the previous six months. the circumstances, provincial labour Paid leave authorities may also be competent. Female employees get 90 days of Employees’ compensation paid maternity leave. As a general Employees that have an accident, Employment contract rule, employees take 45 days before injury or a work-related illness get Written employment contracts giving birth and 45 days afterwards; the cost of treatment, rehabilitation are not required for permanent, however, they can choose to just and sick pay covered for up to 12 full-time employment relationships. take 30 days before giving birth. months thanks to the compulsory Unless the parties agree otherwise, The cost is covered by the social employment risk insurance. the Employment Contract Law security system. establishes the presumption that Termination the employment relationship is While certain CBAs may provide The employment relationship may established for an indefinite term for longer periods, male employees be terminated by mutual consent, with an initial three months’ trial are only entitled to two days of paid employee’s resignation, employee’s period. However, certain categories paternity leave after the birth. dismissal, redundancy or termination of contracts need to be in writing. of a fixed-term contract. There are other circumstances under Minimum wage which an employee receives paid The minimum wage is defined leave, these include: marriage, death by the National Council for of a child, death of a sibling and a Employment, Productivity and high school or university exam. Adjustable Minimum Living Wage. This body is formed by Social security representatives from the private In Argentina there is a single social sector, unions and the executive security system, both employers branch of the national government. and employees must contribute to the social security system in The Argentine Constitution provides accordance with the employee’s that under no circumstances may wage level.

16 Audit

Accounting standards of the international financial to replace or supplement the In Argentina, accounting standards reporting standards. Journal book. are developed by the Argentine Federation of Professional Council Starting in March 2015, all Entities Filing and submission of in Economic Sciences (FACPCE). should present a half-yearly plan statutory financial statements The Technical Standards issued establishing the appointment of Public companies must file quarterly by this body are then approved coordinators, creation of the working and annual financial statements by Professional Councils of group, planning of training, planning with the National Securities Economic Sciences in each of IT adjustments, within other Commission and the Buenos Aires province. Additionally, the Central requirements. stock exchange. They must file Bank and the National Insurance consolidated and separate financial Superintendence supplement the Also in this context, Internal statements. These must include any accounting standards with rules Audit shall issue a biannual report supplementary information required specially created for the entities informing the progress of the plan. by IFRS. they supervise. Accounting records An additional document called the Professional accounting standards According to Article 44 of the ‘summary of financial information’ are based on a 1998 IFRS ruling, Commerce Code and Law No must be included in the quarterly which means there are multiple 19550, all Corporations domiciled and annual statements. The differences with current IFRS. in Argentina must keep accounting document includes a summary of However, FACPCE issued a records of their transactions. There comparative financial statements, resolution in 2010 for the full are two mandatory sets of books: certain defined financial ratios adoption of IFRS for financial years A Journal and an Inventory and and general comments on the beginning on or after 1 January Balance Sheets Book. These books operations for the period. Annual 2012 for public companies quoted should be kept for up to 10 years fillings must include the board of in local capital markets. This ruling after the cease of operations of the directors’ report to the shareholders did not apply to banks, financial company. and an annex reviewing certain institutions, insurance companies aspects of corporate governance. and other industry subject to A special book must be kept to special regulation. record company meetings’ minutes. Private companies must file their Additionally, firms must have a annual financial statements with the Private companies can voluntarily Register of Shares which should Corporate Inspection Department adopt full IFRS, IFRS for small and contain information such as the kind of the relevant jurisdiction. This medium-sized enterprises or local of shares, rights and obligations, filing also includes consolidated professional accounting standards. status of capital integration, the and separate financial statements. votes granted, etc. Finally, the These must include: a statement of In February 2014 the BCRA issued shareholders or representatives the financial position, a statement a rule establishing that financial attending the company meetings of income, a statement of the entities which are subject to the need to sign the Attendance Book, evolution of shareholder’s equity and BCRA supervision shall be bound by certifying their address, identity card statement of cash flow. the convergence of the Reporting number, number of shares held and and Accounting Regime to the IFRS. the corresponding number of votes. Banks, financial institutions and insurance companies must file In September, the BCRA issued Businesses subject to the control quarterly financial statements with a Communication, including the of the General Justice Inspection or the Central Bank and the National detailed contents and formalities to the Securities Commission, can Insurance Superintendence, to be met by the Implementation be authorised by these entities to respectively. Plan in order to begin application used modern mechanised records

17 Trade

Foreign Direct Investment ask for authorisation from the Foreign companies wanting to Customs Service. invest in Argentina are permitted to do so without previous Before registration with the registration or governmental Importers’ and Exporters’ Registry, approval, in accordance with the the individual or corporation same terms as investors domiciled wanting to make these type of in Argentina. Foreign investors transactions must be registered can enter Argentina’s market as a taxpayer with the Federal through mergers, acquisitions, Revenue Service. Additionally, joint-ventures or by participating business entities must prove in publicly financed research and their creditworthiness or financial development programmes. standing. Gross sales carried out during the previous year need to be Over the Over the past year the government equal to at least ARS300,000. If this has taken various actions to creditworthiness cannot be proved, past year the improve the foreign investment the entity must post a performance attractiveness of the country. bond to the Customs Service for Argentine Foreign Direct Investment is ARS30,000. essential to enhance the country’s government productive capacity and GDP. Exports are generally subject to The Argentine government has export duties which vary from five has taken settled outstanding international per cent to 45 per cent of the value arbitral awards, engaged with the of the goods. However, it must various actions International Monetary Fund to be noted that oil and certain petrol improve economic reporting data derivatives can be subject to higher to improve and addressed legacy debt issues. duties. As a general rule, exporting goods is exempt from VAT and the foreign Local legislation provides foreign gross receipts tax. Exporters must investment with protection and an bring foreign currency proceeds investment arbitration process for disputes with from exports into Argentina under Argentina. Moreover, the country the mandatory terms prescribed by attractiveness has signed Bilateral Investment the Central Bank. They are subject Treaties (BITs) and is a member to Exchange Control Regulations of the country. of the Multilateral Investment and to the Criminal Exchange Guarantee Agency (MIGA), the Control Regime. There are certain Overseas Private Investment tax incentives to promote exports: Corporation and the International Centre for the Settlement of • Exporters are entitled to additional Investment Disputes (ICSID). reimbursements for exports made through ports located down the Imports and exports south Colorado River Individuals or companies wanting • VAT refunds of up to 21 per cent to import or export goods from or of the FOB value of the exports into the country must be registered • Reimbursement regime: inland in the Importers and Exporters’ taxes and other taxes paid Registry before the Customs when imported goods are sold Service. Those importers or for export are totally or partially exporters that only wish to make refunded sporadic transactions do not need to comply with the registration • Refunds regime: inland taxes paid requirements, they can simply for the goods sold for exportation

18 (or services related to those or exported goods. The purpose purchase, rental or lease without goods) are totally or partially of these areas is to promote trade charge of public property reimbursed). and export-orientated industries by reducing both costs and Trade agreements Goods imported on a permanent administrative procedures. There are Argentina is a member of the basis must comply with all tariff 11 Free-Trade Zones in Argentina Southern Common Market and non-tariff regulations and located in the following provinces: (Mercosur), a customs union formed prohibitions. Import duties vary from Buenos Aires, Cordoba, Chubut, with Brazil, , and 0 to 35 per cent depending on tariff La Pampa, Mendoza, Misiones, . Associate member classification of the goods. The Salta, San Luis, Tucuman and countries and Bolivia grant customs value for the calculation Entre Rios. Under the current law Mercosur member countries of import duties is the transaction the government is only authorised preferential access to their markets. value. In addition to import duties to create one Free Trade Zone The main provisions of the treaty there are certain other taxes that per province except for sparsely establishing Mercosur were: importers must pay: populated areas. • Free circulation of goods and • VAT (for more information see tax The Special Customs Area covers services between member states section) the Tierra del Fuego province and • The coordination of • Statistic fee: levied on the the benefits only apply to firms macroeconomic policies already established there. transaction value of the imported • The establishment of a common goods at a rate of 0.5 per cent. external tariff This fee is subject to maximum Government incentives • The development of accords for amounts depending on the value Argentina has a series of incentives specific sectors of the imported goods to promote investment by both foreign and local investors: • A three per cent on income tax To be considered as a Mercosur advance payment (the rate is • General incentives: instruments good, the products need to meet 11 per cent when the importer is and measures to encourage the Mercosur rules of origin, not the final user) investment applicable to all the exporter must provide the regions and all areas of economic importer with the Mercosur Goods imported on a temporary activity. General incentives include certificate of origin. basis (either to be exported in measures such as the export the same condition they entered promotion measures mentioned Additionally, Argentina is a the country or to undergo a above, regulations to reduce initial member of the Latin American process of transformation to be investment costs and measures Integration Association (LAIA) re-exported) are not subject to to boost competitiveness by which includes Mexico and all import duties except for certain reducing operating costs Latin American countries in South service fees. Importers must America. The long-term objective • Sectorial incentives: these provide the Customs Service with a of this organisation is to establish incentives target specific sectors guarantee to ensure they will pay a common market in a gradual and of the economy including any applicable duties or potential progressive manner. Indeed, duty mining, forestry, tourism and the penalties. concessions have been extended automotive industry to many products shipped to other Tax-exempt areas • Regional incentives: they include LAIA countries. Argentina has a number of provincial investment promotion Free Trade Zones and Special regimes and investment support Customs Areas. infrastructure. Regional incentives normally include exemption from Free Trade Zones are areas where certain provincial taxes, reduced goods are not subject to the ordinary public utility rates, support for customs controls and where duties infrastructure and equipment or taxes are not levied on imported projects and facilities for the

19 Finance

Capital markets of securities is regulated by Law The Central Bank conducts the The main equity exchange in 26,831. government’s monetary policy, Argentina is the Buenos Aires Stock regulates foreign currency reserves Exchange (BCBA) which works with Those companies wanting to be and controls financial institutions. an associate market, the Buenos listed in any exchange need previous There are certain restrictions that Aires Securities Market (MERVAL). authorisation from the National banking institutions need to comply Law 26,831 recently established Securities Commission and for the with: the creation of a new market: the market itself. Generally, they need Argentinean Exchange Market. In to supply regulatory authorities with • They cannot run companies December 2014, it was yet to be certain information such as: engaged in commercial, industrial approved by the National Securities or farming activities or any other Commission. Around 80 per cent of • A risk rating report activities without the Central Bank the new market will be controlled • A prospectus authorisation by MERVAL and the rest by other • Corporate approval and • They need authorisation from the Argentinean exchanges. modification of the by-laws in Central Bank to encumber their accordance to the public offer assets In Argentina, each regulated regulations • They are not allowed to accept market or exchange (except the their own shares as collateral BCBA) has its own regulations and Listed companies are subject to security for any sort of transaction requirements, including: on-going reporting requirements • They cannot enter into any type • Reporting systems of transaction with their directors, Banking system officers, managers or any other • Administrative procedures Argentina has a dynamic banking person related to the institution • Registry and customer system, more than 64 banking under conditions more favourable information institutions operate in the country, than those offered to independent • Transaction records of which 30 per cent are owned third parties by foreign banks, mainly from the • The nature of the assets that can United Kingdom, and the be traded Until the enactment of order 146/94, United States. The banking sector the Central Bank only considers • The scope of the transactions has over 4,300 branches and applications of financial foreign • The requirements to be fulfilled more than 16,000 automatic teller financial institutions from countries by each of the agents involved in machines (ATMs). that granted the same treatment market transactions to Argentine financial institutions. While access to financial services However, this reciprocity principle The regulatory body responsible for in Argentina is higher than the is no longer in place. Additionally, regulating the equity exchange is regional average; the government financial institutions in which the National Securities Commission has adopted some measures more than 30 per cent of their which supervises: to further facilitate the access corporate capital is held by to banking services across the individuals or entities domiciled • Companies authorised to issue country. Some of the key measures abroad enjoy the same treatment and offer securities in Argentina were intended to increase the as domestic financial institutions. • The trading of securities in the geographical coverage and Nevertheless, the Central Bank Secondary Market infrastructure of the ATM and still has discretionary powers to the use of e-commerce payment • Individuals and legal entities reject applications to establish new systems through universal free involved in the public offering of financial institutions. accounts. Additionally, the Central securities and secondary market Bank has implemented various transactions involving securities Insurance industry measures to expand the National Argentina is Latin America’s Payment System and guarantee In addition to the regulations fourth largest market for non-life more security and efficiency in issued by each regulated market business after Brazil, Mexico banking transactions. or exchange, the public offering and Venezuela.

20 The Argentine Superintendence In 2011, Argentina established of Insurance (SSN) is the main a new reinsurance regulatory regulatory body responsible for framework that has been supervising the insurance industry, implemented progressively. Under its jurisdiction is limited to the the new legislation, Argentine companies doing business in insurance companies may reinsure Argentina. Insurance companies with local or admitted reinsurers. operating in Argentina can be A risk can only be placed with an subject to the jurisdiction of other admitted reinsurer when, due to government authorities such as the importance and type of risk the Public Registry of Commerce involved, there is no local capacity. and the National Institute of Social Economy. Investment management Argentina is industry The main legislations governing the The investment management Latin America’s Argentine insurance market are: industry in Argentina does not have a specific regulatory framework. fourth largest • Insurance Law 17,418 which Funds’ activities are governed by regulates insurance contracts general rules governing companies market for • Insurance Undertaking law and mergers and acquisitions. 20.091 which regulates insurance Argentina does not have specific non-life undertakings investment vehicles or other structures to incentivise or facilitate • Law 22,400 which governs business after private equity investment. Funds insurance broking activity generally operate as a foreign limited Brazil, Mexico partnership. If a private fund intends Argentine law prohibits insuring to raise funds in Argentina through abroad interests falling within and Venezuela. a public offering, it needs to register Argentina’s jurisdiction. Institutions with the Argentine Securities offering insurance coverage or offer Commission as a register issuer, as insurance contracts without being a corporation or as a financial trust. authorised could be subject to fines or other penalties. Most funds operating in Argentina obtain their funding from foreign The insurance market went through investors including institutional some fundamental changes in 2013: investors, pension funds, banks, hedge funds, multilateral institutions • The legislation on the and individuals. It is rare for local incorporation of insurers and banks, insurance companies and reinsurers as well as the transfer government agencies to invest in of shares and capital contributions private equity funds. was amended • A new law regulating insurance Investment levels have remained agents and limits to the stable over the last few years, commission of insurance brokers especially for established companies came into force in sectors such as agribusiness, • The SSN obtained more staff consumer credit, manufacturing and new offices and has and export-orientated businesses. increased the number and Foreign private equity funds scope of its investigations continue to invest in IT and online which has sometimes resulted in gaming sectors. severe sanctions

21 Infrastructure

Argentina has an advanced The country also has an extended communications network which telecommunications system with has placed the country as the third the highest density of fixed and Latin American country in the World mobile lines in Latin America Banks’ Logistics Performance Index. but with limited infrastructure The infrastructure network includes: investment in the last years. over 39,322 kilometres of national Similarly, Internet penetration is highways and 195,837 kilometres increasing rapidly above the region’s of provincial roads as well as one average. Argentina is currently the of the largest railway networks in 13th country in the world in terms of the world. It has 53 airports, 21 of internet penetration with more than which are international with more 11 million hosts and Buenos Aires than 30 air carriers offering direct is considered as the Wi-Fi capital flights from Argentina to more than of Latin America with the highest 40 destinations. concentration of wireless hotspots per inhabitant. Argentina has 43 ports, seven of which are sea ports. Buenos Aires Finally, thanks to the abundance is the country’s main port and the of natural resources, the country main point of access and departure is able to meet most of its energy for most of the country’s foreign requirements with its own trade. Other big ports include: La resources. The government is Plata, Bahia Blanca, Neuquen, San seeking to promote the use of Antonio Oeste and Puerto Madryn. renewable energies.

22 Country profile

Capital City Buenos Aires

Area 2 780 400 sq. km

Population 41.45 million

Language Spanish

Currency Pesos (ARS)

International dialling code 1+54

National Holidays 2015 01 January – New Year 16 February – Carnival 17 February – Carnival 24 March – Day of Remembrance for Truth and Justice 02 April – Malvinas Day 03 April – Good Friday 05 April – Easter 01 May – Labour Day 25 May – May Revolution 20 June – National Flag day Argentina 09 July – Independence day Argentina 17 August – San Martins Day 12 October – Columbus Day 20 November – National Sovereignty day 08 December – Immaculate Conception day 25 December – Christmas

Business and Banking hours 8.00 to 17.00 / 09.00 to 15.00

Stock exchanges MERVAL (Mercado de Valores)

Political structure 24 autonomous provinces with their own political and economic administrations

Doing Business rank 2015 124

Ease of Doing Business

Topics 2015 rank 2014 rank Change in rank

Starting a business 146 143 -3

Licenses and Permits 181 178 -3

Getting Electricity 104 98 -6

Registering property 135 130 -5

Financing 71 67 -4

Protecting Investors 62 61 -1

Paying Taxes 170 169 -1

Trading Across Borders 128 133 5

Enforcing Contracts 63 64 1

Resolving Insolvency 83 74 -9

Source: World Bank Group (Doing Business)

23 This document is issued by HSBC Bank plc. (the Bank). This guide is a joint project with Grant Thornton. It is not intended as an offer or solicitation for business to anyone in any jurisdiction. It is not intended for distribution to anyone located in or resident in jurisdictions which restrict the distribution of this document. It shall not be copied, reproduced, transmitted or further distributed by any recipient. The information contained in this document is of a general nature only. It is not meant to be comprehensive and does not constitute financial, legal, tax or other professional advice. You should not act upon the information contained in this document without obtaining specific professional advice. Whilst every care has been taken in preparing this document, the Bank and Grant Thornton makes no guarantee, representation or warranty (express or implied) as to its accuracy or completeness, and under no circumstances will the Bank or Grant Thornton be liable for any loss caused by reliance on any opinion or statement made in this document. Except as specifically indicated, the expressions of opinion are those of the Bank and are subject to change without notice. The materials contained in this document were assembled in January 2015 and were based on the law enforceable and information available at that time. Grant Thornton refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton International Ltd (GTIL) and its member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate, one another and are not liable for one another’s acts or omissions. This publication has been prepared only as a guide. No responsibility can be accepted by GTIL for loss occasioned to any person acting or refraining from acting as a result of any material in this publication. HSBC retains all responsibility for the translation of the content of this guide.