Media Companies: Tax, Customs and Social Security Debts Cancellation Regime

Executive Decree No. 852/14 ("Decree 852") established a special cancellation regime of tax, customs and social security debts for media holders and producers of audiovisual content, by means of giving advertising space or the use of related services in the programming of their stations in lieu of payment (the “Special Cancellation Regime”), provided that the debt to be cancelled has been previously been processed by the Argentine Federal Tax Authority ("AFIP").

On November 13, 2015 Executive Decree No. 2379/2015 ("Decree 2379") was published in the Official Gazette. This Decree states that given the positive impact of Decree 852, the following should occur: (i)  extend the scope of  Decree 852 in order to cover as many subjects as possible which maintain tax, customs and social security debts; and, (ii)  extend the deadline to adhere to the Special Cancellation Regime until December 31, 2015.

Decree 2379 authorized Presidency of the Cabinet of ministers, via  the Secretariat of Public Communication, to conclude agreements with individuals and legal entities who are owners of newspapers, magazines and publishing companies generally, audiovisual media services and related services, producers of audiovisual and digital content, digital newspaper editions of online information and street advertising companies (the “Media Companies”), in order to cancel tax, customs and social security debts through the Special Cancellation Regime.

In the Special Cancellation Regime, the Media Companies may include the debts listed above together with their interest, fines and accessories accrued as of October 2015.

Finally, Media Companies that have already joined the Special Cancellation Regime under the terms of Decree 852 may submit a new request before the AFIP to incorporate those debts that had been excluded.