Pay attention to the security of the payment: foreign exchange control in Argentina

        After experiencing a sharp drop in the peso in August, the Argentine government authorized foreign exchange controls on September 1, local time. In order to control the continuous loss of U.S. dollar and foreign exchange reserves, on the afternoon of September 15th, the head of the Argentine Central Bank announced the following new restrictions at a press conference:

　　 1. A 35% withholding income tax is levied on the purchase of US dollars. The measure is aimed at levying taxes on U.S. dollar savings and foreign currency settlement payments, and will take effect from Wednesday, September 16. This means that those who buy U.S. dollars for savings must pay 30% of the national solidarity tax and must also pay a 35% withholding income tax.

　　 2. The opening of a USD account will be controlled. Non-residents of Argentina will be restricted from selling securities in foreign currencies or buying Argentine securities abroad. If you are receiving government social subsidies (before and after the epidemic), you cannot open a US dollar account. There are no restrictions on using credit cards to make purchases, but these payments must be paid through a savings U.S. dollar account.

　　 3. The company must reorganize its debts. At the company level, the Argentine central bank will require companies with monthly maturities of more than $1 million to propose a restructuring plan for the debt. Enterprises must first obtain the approval of the Central Bank of Argentina to purchase foreign exchange. Remittances overseas must obtain government permission. Individuals cannot purchase more than US$10,000 per month, but there is no such restriction if they withdraw from the account.

　　 Foreign traders who have cooperation with Argentine importers must pay attention to the security of the payment!