Financial entities may grant resident entities access to the foreign exchange market for the purchase of foreign currency in order to transfer abroad profits and dividends if the following conditions are met:
"a) Profits and dividends shall be declared in closed and audited financial statements.
b) The dividends in foreign currency shall not exceed the amount of dividends determined by the shareholders' meeting in local currency.
c) The total amount of dividends to be transferred cannot exceed 30% of the amount of new capital contributions made by such non-resident into local companies which were settled (i.e., converted into pesos) in the foreign exchange market as of January 17, 2020.
d) Access to the foreign exchange market must occur at least after 30 calendar days counted as from the settlement of the last capital contribution mentioned in (c) above. The contribution must be capitalized, without prejudice to the time required for its registration with the Public Registry.
e) The resident entity must be in compliance with the last due filing of the Survey of External Assets and Liabilities." (unofficial English summary by Baker McKenzie)
If the above-mentioned conditions are not met, a prior approval of the Argentine Central Bank is required to access the foreign exchange market for the purpose of payment of dividends abroad to non-residents.
"CHAPTER VII - Exchange regime
ARTICLE 29. - The Central Bank of the Argentine Republic shall:
a) Advise the Ministry of Economy and the Honorable Congress of the Nation, in everything related to the exchange regime and establish the corresponding general regulations;
b) To dictate the regulatory norms of the exchange regime and exercise the control that their compliance requires.[...]" (Law No. 24.144 on the Charter of the Central Bank of the Argentine Republic (23 September 1992), last amended by Decree 416/2018 of 8 May 2018, Article 29 [google translation])
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"ARTICLE 1 .- It is established that the equivalent value of the export of goods and services must be entered into the country in foreign currency and / or negotiated in the exchange market under the conditions and terms established by the CENTRAL BANK OF THE ARGENTINE REPUBLIC.
ARTICLE 2.- The CENTRAL BANK OF THE ARGENTINE REPUBLIC, in accordance with the provisions of its Organic Charter, will establish the cases in which access to the exchange market for the purchase of foreign currency and precious metals in cash and transfers abroad will require prior authorization , based on objective guidelines based on the current conditions in the exchange market and distinguishing the situation of human persons from that of legal persons.
ARTICLE 3.- The CENTRAL BANK OF THE ARGENTINE REPUBLIC is empowered to establish regulations that prevent practices and operations that tend to circumvent, through public titles or other instruments, the provisions of this measure. [...]" (Decree No. 609/19 (1 September 2019), as amended by Decree No. 91/19 (28 December 2019), Articles 1, 2 and 3 [google translation])
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"“- Replace point 3.4. of the Ordered Text on the rules of "Exterior and changes", by the following:
"3.4. Payments of profits and dividends.
Entities may give access to the foreign exchange market to transfer foreign currency abroad as profits and dividends to non-resident shareholders, without the prior consent of the BCRA, as long as the following conditions are met:
3.4.1. Profits and dividends correspond to closed and audited balance sheets.
3.4.2. The total amount paid for this concept to non-resident shareholders, including the payment whose course is being requested, does not exceed the amount in local currency that corresponds to them according to the distribution determined by the shareholders' meeting. The entity must have a sworn statement signed by the legal representative of the resident company or an attorney with sufficient powers to assume this commitment on its behalf.
3.4.3. The total amount of transfers for this concept made through the foreign exchange market since 01/17/2020, including the payment whose course is being requested, does not exceed 30% of the value of the new contributions of direct foreign investment in registered resident companies and settled through the exchange market as of the aforementioned date. For this purpose, the entity must have a certification issued by the entity that carried out the settlement that it has not issued certifications for the purposes provided in this point for an amount greater than 30% of the settled amount.
3.4.4. Access occurs within a period of no less than 30 calendar days from the settlement of the last contribution that is computed for the purposes of the requirement set forth in point 3.4.3.
3.4.5. The client must present the documentation that supports the definitive capitalization of the contribution. In case of not having it, you must present proof of the beginning of the registration process before the Public Registry of Commerce of the final capitalization decision of the capital contributions computed according to the corresponding legal requirements and present the documentation of the definitive capitalization of the contribution within 365 calendar days from the start of the process.
3.4.6. The entity must verify that the client has complied, if applicable, with the declaration of the last due presentation of the "Survey of external assets and liabilities" for the operations involved.
The cases that do not fit into the foregoing will require the prior approval of the BCRA to access the exchange market for the transfer of foreign currency abroad for these concepts.[...]"" (Communication “A” 6869 (16/01/2020) of the Central Bank of the Argentine Republic, amending regulations on Foreign Trade and Exchange [google translation])
Law No. 24.144 on the Charter of the Central Bank of the Argentine Republic (23 September 1992), last amended by Decree 416/2018 of 8 May 2018, Article 29
Decree No. 609/19 (1 September 2019), as amended by Decree No. 91/19 (28 December 2019), Articles 1, 2 and 3
Communication “A” 6869 (16/01/2020) of the Central Bank of the Argentine Republic, amending regulations on Foreign Trade and Exchange
[<a href="http://servicios.infoleg.gob.ar/infolegInternet/anexos/65000-69999/66194/texact.htm">Law</a>],[<a href="http://servicios.infoleg.gob.ar/infolegInternet/verNorma.do?id=327566">Decree</a>],[<a href="http://www.bcra.gov.ar/Pdfs/comytexord/A6869.pdf">Communication</a>],[<a href="https://www.bakermckenzie.com/en/insight/publications/2020/01/regime-amendment-payment-of-dividends">Other</a>]