The Argentine government has extended the grace period during which Argentine employers may comply with employee registration requirements without being subject to fines and sanctions normally associated with late or deficient registration. Pursuant to Decree No. 1018/09 issued on July 31, 2009, the term of the exemptions provided by Law No. 26.476 was extended from July 31, 2009 to December 31, 2009.
Under Argentine law, every employer is required to register its employees with the Argentine Tax Bureau and pay certain social contributions. In order to encourage the registration of unregistered employment relationships and the correction of deficient registrations (i.e., those registrations in which the employer misreports the employee's wages or the date that the employee was hired), the Argentine Congress issued Law No. 26.476 on December 24, 2008. This law created a grace period during which employers were exempt from the fines and sanctions that normally would accompany employment relationships that were unregistered or deficiently registered. Such grace period originally ended on July 31, 2009.
Law No. 26.476 further exempts employers from payment of principal and interest owed on unpaid social contributions for up to 10 employees registered pursuant to the law. However, the exemption from backpayment of unpaid social contributions does not apply beyond the 10th employee registered under the law.
The Extension Decree extended the grace period under Law No. 26.476 from July 31, 2009 to December 31, 2009 in order to encourage more Argentine employers to register their employees.
For more information on the Extension Decree, please contact Federico Laurens (+5411.5281.6000) or Daniel H. Dicásolo (+5411.5281.6000) from Estudio Bunge – Bunge, Smith & Luchía Puig – Abogados in Buenos Aires.