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Special Account for the Extraordinary Solidarity Contribution

The BCRA Board provided that financial institutions must open a “special account for the repatriation of funds” to persons or undivided estates that fall under the scope of Law No. 27,605 on the Extraordinary Solidarity Contribution.

These special accounts will only be used for the sake of repatriation and/or to credit the proceeds of the realization of financial assets held abroad.

These accounts are meant to hold more than one transfer and will be denominated in the same foreign currency of the funds being repatriated. The transferor and transferee—i.e., the account holder and repatriation reporting party—must be the same.

Financial institutions must report to the Federal Administration of Public Revenue (Administración Federal de Ingresos Públicos, AFIP)—in accordance with its procedures and guidelines—on the debits and credits made on these accounts.

Funds must be deposited in a special account until December 31, 2021 or may be used for making or renewing time deposits or else for any other purpose set out in Section 6 of Executive Order No. 42/2021.

For the purpose of the Law on the Extraordinary Solidarity Contribution, repatriation means bringing back foreign currency holdings and/or the proceeds of the realization of, at least, 30% of the financial assets held abroad. These transfers must be made within a period of 60 business days as from December 18, 2020.

February 11, 2021.

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