By means of the Province of Buenos Aires Tax Authority ("ARBA") General Resolution 19/19 (the "Resolution"), the Province of Buenos Aires created a withholding regime (the "Regime") applicable to Gross Receipt Tax ("GRT") taxpayers that provide services focused on facilitating management, processing or aggregation of payments, for purposes of receiving or making payments on behalf of third parties.

The Regime encompass operations made using (a) a website and/or (b) applications that enable the connection of different payment methods to mobile devices, and/or (c) any other type of service consisting on the management, redemption and transmission of electronic payment funds through IT applications, interfaces, websites or other means of electronic or digital communications.

The applicable GRT withholding rate varies between 0% and 3.5%, depending on the type of GRT payer. According to the Resolution, the rate will be determined based on a list to be published by ARBA. If the GRT payer is not included on such list, the applicable rate will be 3.5%.

The GRT withholding will have to be made upon payment of the collected funds to the third party that it is the owner of such funds (either GRT payer included on the list to be published by ARBA or other GRT payers not included on the ARBA list that use this platforms, as long as (i) they have more than 5 operations with purchasers domiciled in the Province of Buenos Aires, and (ii) that the individual or aggregate amount of these transactions is equal or higher than AR$25,000. These conditions have to be jointly verified).

GRT Withholdings will have to be reported to ARBA on a monthly basis. For the existing payment processors, deadline to register as withholding agent expired on August 31.

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