New Recommendations of Evaluation and Monitoring Committee of the ATP Program

On May 18, 2020, the Administrative Decision of the Chief of Cabinet No. 817/2020 (the “Decision”) was published in the Official Gazette, adopting the recommendations provided by the Evaluation and Monitoring Committee (the “Committee”) of the Work and Production Assistance and Emergency Program (the “ATP” after its acronym in Spanish) .

Minute No. 11 established the following recommendations:

1.- Complementary Salary April 2020: Extension of Activities

The Committee carried out a reevaluation of the transportation, education and storage and warehousing industries (that were not incorporated in previous minutes), to allow them to request the benefit of the Complementary Salary.

- Transportation: Codes 492290 and 524190 (activities reported by the Ministry of Transportation).

- Education: The activity identified under code 853100. In respect of this activity, it is recommended that the Ministry of Education provide the Argentine Tax Authority (the “AFIP”) with the list of institutions that do not receive contributions and/or subsidies identified by their respective tax ID code.

- Storage and deposit: The activity identified with the code 522099 referring to storage and deposit services n.c.p. (not classified previously).

2.- Analysis by Industry

The Ministry of Transport, the Ministry of Tourism and Sports and the Ministry of Health presented notes regarding companies and/or providers so that they can be incorporated into the ATP Program.

3.- ATP Program: Repayment

Regarding the companies that request it, the Committee recommends that the AFIP organize a mechanism to implement the withdrawal of the Program with respect to the Complementary Salary. In the cases in which the Complementary Salary had been paid to the workers, said amounts, plus any accessories that may correspond, must be transferred to the AFIP, which will proceed to send the funds to Social Security Authority (the “ANSES” after its acronym in Spanish), which was the entity which had originally paid them.

4.- Complementary Salary

Regarding the salaries accrued in the month of May and in relation to the Complementary Salary, it is recommended to extend the requirements (regarding the non-distribution of profits, repurchase shares, acquire securities by weight, etc.) to all recipients regardless of the number of workers that each company has.

In relation to the employers with more than 800 workers as of February 29, 2020, the enforceability of such requirements was extended by 24 months.

5.- Complementary Salary: Control of Compliance with Requirements

The Committee recommends requesting the AFIP to send the Argentine Central Bank and the Argentine Securities and Exchange Commission (the “CNV” after its acronym in Spanish) the list of beneficiaries, to carry out the control of compliance actions in their respective authorities.

6.- Zero Rate Credit: Self-employed (Taxpayers under the simplified tax regime)

The Committee recommends replacing the admissibility criteria:

“That the amount of electronic invoicing for the period between March 12 and April 12, 2020 has fallen below the average monthly minimum gross income of the category in which they are registered, except for those registered in Category A, in which case the amount of electronic invoicing corresponding to that period must be less than the amount of TEN THOUSAND PESOS ($10,000).”

7.- Employee Contributions allocated to the Argentine Integrated Social Security System (SIPA) – May 2020 Remunerations

Regarding the benefits of postponement and reduction of employer contributions destined to pension system corresponding to the remunerations of May 2020, the Committee recommends the maintenance of the beneficiary activities.

This standard comes into effect after its publication in the Official Gazette.