Understanding the New Legal Framework in Argentina: “Ley Bases”

Argentina’s House of Deputies has sanctioned a substantial part of the new legal framework –  “Ley Bases,” sticking to President Javier Milei’s original proposal. The Argentine Constitution mandates that if the revising Chamber modifies a text, the original prevails if the initiating House insists.

Key Provisions of the Ley Bases

The House of Deputies approved several critical items, which will significantly impact various sectors in Argentina.

Special Powers for the National Executive Power (PEN)

• Restructuring the Public Administration: The President can restructure the Public Administration for one year under the “Ley Bases.”
• Renegotiating and Rescinding Contracts: The “Ley Bases” authorise the PEN to renegotiate or rescind public works contracts.

Incentives for Investments

• Tax and Customs Incentives: The “Ley Bases” provide tax and customs incentives to encourage 30 years of significant investments.

Privatisation and Fiscal Reforms

• Privatisation of State Companies: State companies will be privatised.
• Tax Reforms: Income and personal assets tax changes aim to reduce the fiscal deficit to zero, as outlined in the “Ley Bases”.

Employment Law Reforms

• Extended Trial Period: The trial period for employees is extended.
• Simplification and Registration: Employment relationships, registration, payment processes, and mutual terminations are simplified.
• Worker Assemblies and Dismissal Conditions: Workers can hold assemblies without disrupting activities. Employers can dismiss employees without prior notice if they damage the workplace.

Special Regime for Significant Investments

• Targeted Industries: The “Ley Bases” encourage significant investments in forestry, tourism, infrastructure, mining, technology, steel, energy, oil, and gas.

360 Business Law is well-equipped to guide businesses through these substantial legal changes. Here’s how we can assist:

• Legal Advisory Services: Our team provides expert advice on restructuring the Public Administration and renegotiating public works contracts under the “Ley Bases.”
• Tax and Customs Duties: We help businesses navigate the new tax and customs incentives to maximize their benefits.
• Privatization Processes: Our specialists assist with the legal aspects of privatizing state companies as mandated by the “Ley Bases.”
• Employment Law Compliance: We ensure your business complies with the new employment laws, simplifying registration and termination processes.
• Investment Opportunities: We identify and facilitate investments in targeted industries, ensuring you take full advantage of the special regimes.

Transitioning through these changes can be complex. With the right legal support, businesses will comply and thrive in the new regulatory environment.

Key Takeaway Points from the Blog:

1. Sanction of “Ley Bases”: Argentina’s House of Deputies approved the “Ley Bases,” adhering to President Javier Milei’s original proposal.
2. Special Powers for PEN: The National Executive Power (PEN) can restructure the Public Administration and renegotiate or rescind public works contracts for one year.
3. Investment Incentives: The “Ley Bases” provide tax and customs incentives to encourage significant investments for 30 years.
4. Privatisation and Tax Reforms: The law mandates the privatization of state companies and changes in income and personal assets taxes to reduce the fiscal deficit to zero.
5. Employment Law Reforms: The “Ley Bases” extend the trial period and simplify employment relationships, registration, payment processes, and conditions for assemblies and dismissals.
6. Special Investment Regime: Targeted incentives are provided for significant investments in sectors like forestry, tourism, infrastructure, mining, technology, steel, energy, oil, and gas.
7. 360 Business Law Support: 360 Business Law guides you through the new legal framework, offering advisory services, tax and customs assistance, privatisation, employment law compliance, and investment opportunities.
8. Navigating Legal Changes: Businesses can trust 360 Business Law to ensure compliance and maximize benefits under the new “Ley Bases” regulatory environment.