PRLog - Nov. 18, 2012 - (Sunnyvale, CA)- Argentina has restricted its residents’ ability to purchase foreign currency and remit funds outside Argentina. The new regulations, expected to stay in effect at least till 2014, impact the current employee share purchase plans and the ability of companies to offer news plans to local employees in Argentina.
Here are the key highlights of these new exchange control regulations that are relevant for companies doing business in Argentina and especially to those dealing with employment law and employee benefits in Argentina.
* Resident companies and individuals cannot procure foreign currency for obtaining certain assets abroad including foreign company shares.
* Employers should be mindful that there are Argentina employment law implications to changing the terms of an employee’s compensation plan in view of the latest regulations. Because participation in a share plan is considered to be part of an employee’s compensation in Argentina, employers must ensure that their employees are not worse off due to any changes to their share plans.
* Companies doing business in Argentina should work with their advisors to immediately review existing employee share schemes and possible employment law implications.
* They should also work with their advisors to explore alternative legitimate ways to remit employees’ funds out of Argentina to acquire foreign company shares.
For more information on Argentina Employee Share Plans, Employment Law and other related issues about doing business in Argentina, please call or email us.
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