2016 was a year of changes for the Argentine economy; the focus of economic policy was placed on certain economic variables that allowed for the correction of the most urgent macroeconomic imbalances, in an international context that changed throughout the year.
The country is known for its high productivity, highly efficient business practices, advanced technology, expansive territories, fertile lands and multiple climate types that foster the growth of a wide variety of crops such as: soybeans (top 3 global producer), wheat (top 13), maize (top 5), sorghum (top 5), as well as livestock (beef top 6 and poultry top 8). Endowed also with forest resources, mining deposits of gold, copper, lead, zinc, natural borates, entonite, clays and construction stone.
Foreign investors may make use of any of the legal forms considered by domestic legislation. Local companies with foreign capital can access domestic credit with the same rights and under the same conditions as local companies with domestic capital.
The exchange control system has been regulated since 2001 by the Central Bank of Argentina (BCRA). From October 2011 to December 2015, the foreign exchange market was also regulated by the Federal Administration of Public Revenue (Administración Federal de Ingresos Públicos, AFIP), establishing the necessary validations to allow access to the Single Free Foreign Exchange Market (Mercado Único y Libre de Cambios, MULC).
After more than one year of the new Administration, many of the mechanisms that had been established to obtain validation of transactions prior to access to the MULC have been eliminated or moderated.
An exceptional tax amnesty was passed by the Argentine Congress allowing taxpayers to include their undeclared assets in exchange of a cash tax payment to the government or a subscription of sovereign bonds or by making certain investments without tax cost. Taxpayers were able to adhere to this regime through the period August 2016 to March 2017. Assets reported were subject to tax rates ranging from 0% to 15%, depending on the amount, type of asset, and month of reporting. Taxpayers were exempted from paying this tax through the subscription of certain ad hoc Argentine sovereign bonds and local mutual funds that focus on development projects, such as renewable energies and infrastructure.