Obligation to Inform Any Transfer of Equity Interest in Local or Foreign Companies

On March 26, 2012, General Resolution No. 3293 issued by the Federal Tax Authorities (“Administración Federal de Ingresos Públicos” or “AFIP”) came into force. The norm widens the information regime created by General Resolution No. 2763/2010.

Through that regime the AFIP had imposed companies in general with the obligation to file certain information regarding the owners of the equity interest, and regarding the company’s composition. That information was referred to December 31 of each calendar year.

With the substitution of the former regime, the AFIP adds the obligation to inform about subsidiaries, parent companies and/or related companies in the terms of Company Law No. 19,550.

On the other hand, the obligation to inform is extended to individuals domiciled in Argentina and undivided states located in the country, regarding their equity interest (securities, shares, quotas and others) in entities incorporated, domiciled or situated abroad, including sole owner companies.

Any change of legal representatives or in the company’s composition must also be informed.

Finally, there is also the obligation to inform within 10 business days from the transaction date, any transfer and/or total or partial, gratuitous or onerous assignment, of securities, shares or other equity interest in local or foreign companies, and listed securities issued by entities incorporated locally or abroad, when those transactions imply a change in the company’s control ownership. This information must be filed by the sellers or assignors, the buyers or assignees, and the intervening public notaries.

All transfers and/or assignments, filings and changes produced between January 1 and March 26, 2012 shall be informed until the last business day of April 2012.

Those who have already filed the information corresponding to the 2011 fiscal period shall file it again following the new dispositions.

Not complying in due time could imply the application of fines according to Tax Procedure Law No. 11,683 and also it could be an obstacle to obtain, among others, tax credit certificates or to be on the different registers created by the AFIP.