GA (Grimaldi Alliance) Expands into Africa with a New Partnership in Angola through FBL Advogados

GA, an international law and tax firm with 12 offices in Italy and direct branches in New York, Lugano, Brussels, London, and Paris, as well as an active network spanning over 70 jurisdictions, led by Managing Partner Francesco Sciaudone (pictured), continues to strengthen its presence in Africa through a partnership with FBL Advogados in Angola.

FBL Advogados – GA's new partner – is Angola's leading law firm. Established in 2004, it is recognized for its international strategic vision and an impressive track record in cross-border transactions with global players. With a senior and highly experienced local team, GA will now be able to assist clients in Angola across key areas such as Corporate, M&A and Private Equity, Natural Resources Law, Oil & Gas, Energy and Mining, Real Estate, Property Law and Land Use, Administrative and Tax Law, Employment Law, and Litigation and Arbitration.

Angola, one of Africa’s most dynamic economies, has recorded an average GDP growth rate exceeding 3% over the past five years, becoming a strategic hub for investments in sectors such as energy, natural resources, and infrastructure. The growth prospects in Angola and the region offer GA and its clients a rapidly expanding market.

“The inclusion of FBL Advogados in GA represents a pivotal step in our strategy to expand into the African market,” said Francesco Sciaudone, Managing Partner of GA. “GA reaffirms its role as a strategic bridge for companies seeking to expand their activities internationally. Our presence in Angola will enable us to further enhance our ability to support businesses entering the African market, providing them with tailored legal support rooted in a deep understanding of the local context.”

Energy and Petroleum

The Presidency of the Republic modified the name of the Ministry of the Popular Power for Petroleum, which is now called Ministry of the Popular Power for Hydrocarbons. (Official Gazette of 12/17/2024. Decree No. 5.061. Entry into force: Upon publication in the Official Gazette).

Tax

The National Integrated Service of Customs and Tax Administration (Servicio Nacional Integrado de Administración Aduanera y Tributaria - SENIAT) established the rate applicable to the calculation of late payment interest accrued during August, September, and October 2024. It was established that the weighted average interest rates for loans of the six (6) principal commercial and universal banks of the country with the highest volume of deposits, excluding portfolios with prime rates, set by the Venezuelan Central Bank (VCB) for August, September, and October 2024 are: 59.26%, 59.23% and 59.30%, respectively, which rates are to be increased 1.2 times for the calculation of late payment interest accrued during the aforesaid months. (Official Gazette of 12/06/2024 and 12/19/2024. Administrative Rulings Nos. SNAT/2024/000108, SNAT/2020/000109, and SNAT/2020/000123).

A Presidential Decree extended until 06/09/2025 the validity of Decree No. 4.525 (Decree of Optimization and Revitalization of Exportation Processes) published in Official Gazette of 06/09/2021. Therefore, the exemptions from the exportation legal regimes indicated in said Decree No. 4.525 continue to be in force. (Official Gazette of 12/16/2024. Decree No. 5.058. Entry into force: As from 12/09/2024). The SENIAT established the schedule of Special Taxpayers and Withholding Agents for the obligations to be performed in year 2025. (Official Gazette of 12/18/2024. Administrative Ruling No. SNAT/2024/000118. Entry into force: Upon publication in the Official Gazette). The SENIAT established the schedule of Taxpayers not Categorized as Special Taxpayers for activities of games of chance to be performed in year 2025. (Official Gazette of 12/18/2024. Administrative Ruling No. SNAT/2024/000119. Entry into force: As from the date of publication in the Official Gazette).

The SENIAT issued an Administrative Ruling that regulates the use of digital media for the issue of invoices and other fiscal documents. For purposes of said Ruling, other documents refer to debit notes, credit notes, delivery orders or waybills and withholding certificates. The taxpayers subject to the obligation to use digital media for the issue of invoices and other documents must perform said obligation as from the first day of the third calendar month after the entry into force of the aforesaid Administrative Ruling. The provisions of said Administrative Ruling will not be applicable to the invoicing by telephony services intermediaries as established in Administrative Ruling No. 0474, published in Official Gazette of 10/01/2004. Administrative Ruling No. SNAT/2014/0032, published in Official Gazette of 09/02/2014, which rules the use of different media for the issue of invoices and other documents by suppliers of mass services, was repealed. The authorizations granted under the validity of said Administrative Ruling No. SNAT/2014/0032 continue to be in effect. (Official Gazette of 12/19/2024. Administrative Ruling No. SNAT/2024/000102. Entry into force: Upon publication in the Official Gazette).

The SENIAT issued an Administrative Ruling that regulates the conditions and requirements to be met by the providers of information technology systems used for the issuance of invoices and other fiscal documents, in order to be homologated and authorized by the National Integrated Service of Customs and Tax Administration (Servicio Nacional Integrado de Administración Aduanera y Tributaria - SENIAT). (Official Gazette of 12/19/2024. Administrative Ruling No. SNAT/2024/000121. Entry into force: Upon publication in the Official Gazette).

The SENIAT established the schedule for declaration and payment of the special contribution for protection of social security pensions in the face of the imperialist blockade to be performed in year 2025. (Official Gazette of 12/19/2024. Administrative Ruling No. SNAT/2024/000120. Entry into force: As from the date of publication in the Official Gazette).

Presidential Decree No. 5.071 established as follows: (i) an exemption of ninety percent (90%) from import duties and from value added tax is established for the final importation of new or used corporeal personal property, made by entities of the National Public Administration and by natural or legal persons with their own resources, classified in the schedules of customs duties indicated in Appendix 1 to Decree No. 5071. This benefit operates by reason of law only; (ii) an exemption from import duties and value added tax is established for the final importation of corporeal personal property, made by entities of the National Public Administration and by natural or legal persons with their own resources, classified in the schedules of customs duties indicated in Appendix II to Decree No. 5.071.

This exemption is subject to the Certificate of No National Production or Insufficient National Production (Certificado de No Producción Nacional o Producción Nacional Insuficiente (CON or CPNI); (iii) an exemption from import duties and value added tax is established for the final importation of corporeal personal property, made exclusively by the Ministry of the Popular Power for Mining Ecological Development or the entities assigned to it and that made exclusively by the Corporación Venezolana de Guayana (CVG) or the companies assigned to it, classified in the schedule of customs duties indicated in Appendix III to Decree No. 5.071; (iv) an exemption from import duties and value added tax is established for the final importation of corporeal personal property, made exclusively by the Ministry of the Popular Power for Attention to Waters or the entities assigned to it, classified in the schedule of customs duties indicated in Appendix IV to Decree No. 5.071; (v) an exemption from import duties and value added tax is established for the final importation of corporeal personal property, made exclusively by the Ministry of the Popular Power for Electric Energy or the entities assigned to it, classified in the schedule of customs duties indicated in Appendix V to Decree No. 5.071; (vi) an exemption from import duties and value added tax is established for the final importation of corporeal personal property, made exclusively by Corporación Socialista del Cemento (CSC) and the companies assigned to it, classified in the schedule of customs duties indicated in the Decree; (vii) an exemption from import duties and value added tax is established for the final importation of corporeal personal property made exclusively by Corporación Venezolana de Comercio Exterior (CORPOVEX), classified in the schedule of customs duties indicated in the Decree. The exemption benefit will apply as of the date of recording of the relevant Customs Declaration for importation. The exemption benefits established in the Decree will apply from 01/01/2025 to 03/31/2025. (Official Gazette No. 6.869 Extraordinary of 12/27/2024. Decree No.5.071. Entry into force: Upon publication in the Official Gazette).

Labor

A Presidential Decree established a fire freeze in favor of the workers of the public and private sectors from 01/01/2025 up to and including 12/31/2026. As a result of the foregoing, the workers protected by the fire freeze may not be dismissed or transferred, nor may their employment conditions be worsened, without a justified cause approved by the Labor Inspector. The fire freeze will apply to the workers referred to in article 87 of the Organic Law of Labor and Workers. Workers of direction and casual or temporary workers are exempted from this Decree. (Official Gazette No. 6.868 Extraordinary of 12/27/2024. Decree No. 5.070. Entry into force: As from 01/01/2025).

TELECOMMUNICATIONS The National Telecommunications Commission determined the portions of the radio spectrum that will be submitted to the public offering procedure, in accordance with the provisions of the Organic Telecommunications Law and other applicable provisions. The National Telecommunications Commission may only assign through the public offering procedure the portions of the radio spectrum that the Administrative Ruling indicates in accordance with the attribution established in the National Chart of Frequency Band Attribution. Administrative Ruling No. 011, published in Official Gazette of 04/27/2016, was repealed. (Official Gazette of 12/03/2024. Administrative Ruling No. 113. Entry into force: Upon publication in the Official Gazette. It will have the character of annex to the National Telecommunications Plan).

Miscellaneous

The Ministry of the Popular Power for National Trade declared the following standard as Venezuelan COVENIN Standard of national character: Standard 2257-1:2024 “Installations of ionizing radiations. Part 1: Classification, delimitation, and demarcation of work environments. Requirements. (2nd. Review).” The content of said Standard will be published in the institutional site of the Deconcentrated Service of Standardization, Quality, Metrology, and Technical Regulations (Servicio Desconcentrado de Normalización, Calidad, Metrología y Reglamentos Técnicos - SENCAMER) (www.sencamer.gob.ve). (Official Gazette of 12/16/2024. Resolution No.091/2024. Entry into force: Upon publication in the Official Gazette).

Candice Yang is the new partner and coordinator of the Asia Region at GA, the international law firm with 12 offices across Italy and direct offices in New York, Lugano, Brussels, London, and Paris. Operating in over 60 jurisdictions worldwide, GA is led by Managing Partner Francesco Sciaudone.

Since 2022, GA has maintained a strategic partnership with Yingke Law Firm, the world’s largest law firm, boasting over 13,000 professionals across 130 offices in China and beyond. The addition of Candice Yang marks a strategic step forward in GA's efforts to expand its legal services in Asian markets, which are playing an increasingly pivotal role in global economic growth.

Candice Yang previously worked at Gianni & Origoni until 2018, before joining Eversheds, where she split her time between Milan and London as Chief Asia Strategist. At the latter law firm, she founded the China Desk, facilitating operations across Europe, the UK, and China.

Her extensive career, which includes roles in locations such as China, San Diego, and Mumbai, has enabled her to cultivate a robust network of international connections in strategic industries including automotive, luxury marine, and financial services.

“We are honored to welcome Candice to GA. Her extensive international experience will undoubtedly enhance our professional capabilities, providing both strategic and relational insights for the Firm,” said Francesco Sciaudone, Managing Partner of GA. “As GA's Asia Area Coordinator, I am confident she will drive significant growth for the Firm in this key region.”

Corporate law

Paris Court of Economic Affairs (Tribunal des affaires économiques de Paris): entry into force of a new protocol for disputes on the merits

On 19 December 2024, the Bar, the Clerk's Office (greffe) and the Paris Commercial Court signed a new protocol relating to the introduction and scheduling of disputes on the merits, with the aim of reducing the average time taken to process these cases.

The protocol concerns the settlement of disputes on the merits (and not summary proceedings, claims and injunctions to pay) and will apply to new cases filed after its implementation, which is scheduled to take place in stages from 1 January 2025. Firstly, it aims to improve the organisation of the filing of cases by introducing a procedure for the scheduling of dates. As soon as this function is operational on the ‘digital court’, the date will be scheduled on the commercial court platform.

The case will then be placed at the clerk's office by electronic transmission (Word or PDF text format) or, if this is not possible, by filing the copy of the summons with the reservation number at the clerk's office.

The protocol also changes the way in which cases are instructed, where representation by a lawyer is mandatory, based on the provisions of articles 446-1 to 446-4 of the French Code of Civil Procedure. As soon as the case is introduced, the parties will be proposed an amicable way of resolving the dispute. In the absence of conciliation, the court will exempt the parties from attending subsequent pre-trial hearings and, after obtaining the opinion of the parties, it will set a calendar for exchanges depending on the complexity of the case. Subject to certain exceptions, the exchanges will have to take place electronically.

Corporate law

New provisions on amicable liquidation proceedings and transfer of company assets (TUP)

Amicable liquidation and universal transfer of assets (TUP) procedures are sometimes misused by fraudulent companies facing tax and social security reassessments, which they seek to elude.

To prevent such misuse, the decree of 7th July 2024 makes it compulsory to publish the dissolution giving rise to a TUP procedure in the “Bulletin officiel des annonces civiles et commerciales” (BODACC) and to produce certificates of social security and tax compliance when closing the amicable liquidation procedure.

As a result, article 8 of decree no. 78-704 is amended to make it compulsory to publish the dissolution giving rise to a TUP procedure only in the BODACC and no longer in a legal gazette, in order to enhance the publicity given to the procedure and the information provided to creditors.

The text also amends article 10 of the same decree and article R. 237-7 of the French Commercial Code (for commercial companies) to make it compulsory to produce a certificate of social regularity and a tax certificate attesting that the accounts are fully updated when the amicable liquidation is closed, as part of this procedure, which takes place without the intervention of a judge. Although the company must not have any debts and must have enough assets to pay all its liabilities, there is no obligation to certify that, a situation that the decree seeks to correct with this new obligation.

These provisions will come into force on 1st October 2024.

Corporate law

Conditions under which former members of a civil company (société civile) are held liable for the company's debts.

In a recent decision, the French Supreme Court (Cour de cassation) ruled that shareholders in a civil partnership who have transferred their shares may be held liable for the company's debts that became due and payable before the date of the transfer, without any need to justify unsuccessful legal proceedings against the company prior to that date.

Corporate law

General Meeting of a Société Anonyme: the failure to establish a quorum is not equivalent to a lack of quorum

The Extraordinary General Meeting of a Société Anonyme is deemed valid only if the shareholders present or represented hold at least one-quarter of the shares with voting rights on first call and one-fifth on second call (French Commercial Code, art. L. 225-96, para. 2). Resolutions adopted in breach of this rule are null and void (French Commercial Code, art. L. 225-96, para. 1).

The shareholders of a Société Anonyme requested the nullity of an Extraordinary General Meeting, arguing that the meeting officers had failed to ensure that a quorum was met.

Their claim has been rejected: only the adoption of resolutions by the Extraordinary General Meeting without respecting the quorum can lead to nullity; however, the plaintiffs did not argue that the quorum had not been met, but only that the officers of the meeting had failed to ascertain its presence.  

Corporate law

Alternative arbitration clause and attribution of jurisdiction: the court may be seized

In a recent decision, the Paris Court of Appeal stated that, in the event of an alternative clause providing for recourse to arbitration to settle disputes arising from the contract, while reserving the parties the option of submitting their dispute to the national court in the event of disagreement, the court may be seized to establish the existence of such disagreement.

Corporate law

Commercial agents unable to continue working for health reasons are entitled to indemnification

The In a recent decision, the French Supreme Court (Cour de cassation) ruled that in the event that a commercial agent terminates his contract for health reasons, he retains his entitlement to the contract termination indemnity, even if he is not completely unable to carry out any activity, as long as he can no longer reasonably pursue his activity as an agent.

Tax

Research tax credit (“crédit d'impôt recherche - CIR”): sub-contracted expenses can only be taken into account if they have been paid during the financial year

According to the Toulouse Administrative Court of Appeal, sub-contracted expenses can only be taken into account in calculating the research tax credit (“crédit d'impôt recherche – CIR”) in respect of a given financial year if they are actually paid in that same year.

Tax

Denial of tax exemption to non-residents is subject to the contradictory procedure

When non-resident contributors claim an exemption on the basis of a bilateral tax treaty in a letter attached to their wealth tax (“Impôt de Solidarité sur la Fortune – ISF”) declaration, the contradictory rectification procedure must be implemented (French Supreme Court 18-9-2024 no. 23-10.515 F-D).

Employment law

The duration of fixed-term contracts, even if discontinuous, is deducted from the trial period provided for in any permanent contract subsequently entered into.

In a recent decision, the French Supreme Court (Cour de cassation) has reiterated the conditions for the implementation of the trial period in the event of a succession of previous contracts, confirming its case law in this matter.

In particular, on expiry of one or more fixed-term employment contracts (CDD), the employee may be hired, without any delay, on a permanent contract (CDI) by the company in which he or she was working. In this case, the duration of the fixed-term contract(s) has to be deducted from any trial period provided for in the new employment contract (French Labor Code, art. L 1243-11, para. 3), even if the various contracts are separated by short periods of interruption. The deduction of the duration of previous fixed-term contracts from the trial period of the new contract is even more applicable in the event of new recruitment on a fixed-term contract following immediately successive fixed-term contracts. However, except in cases of fraud, the employer does not have to reduce the trial period if the new contract is for a different position requiring the employee to have different qualifications and skills.

Employment law

A recording made without the employer's awareness can be used to prove a work-related accident

The plenary session of the French Supreme Court (Cour de cassation) recently ruled that, in civil proceedings, the unlawfulness of obtaining or producing evidence does not necessarily mean that it should be excluded from the proceedings. The court must, when requested to do so, assess whether such evidence undermines the fairness of the proceedings as a whole, by balancing the right to evidence against the conflicting rights involved. The right to evidence may justify the production of evidence that undermines other rights, provided that such production is essential to the exercise of that right and that the violation is strictly proportionate to the aim pursued.

In a judgment of 6 June 2024, the Second Civil Chamber of the French Supreme Court applied this solution for the first time to disputes concerning work-related accidents. It approved the Court of Appeal's (Cour d’appel) ruling that an employee could produce an audio recording made without the knowledge of the director of the company with whom he had had an altercation, in order to obtain recognition both of the work-related nature of the accident resulting from this altercation and of the employer's inexcusable fault, after observing that the court had carefully balanced the director's right to respect for his private life and the victim's right to evidence.

Employment law

Repeated sexist comments by an employee are culpable and justify dismissal

An employee who repeatedly insults colleagues using mildly sexist language is guilty of misconduct justifying dismissal, regardless of the employer's past tolerance.

Employment law

No compensation for notice for an employee who refuses a change in working conditions

An employee who refuses a simple change in working conditions may be dismissed for misconduct. In this case, the employer may require that the notice period, if any, be performed under the new working conditions. An employee who refuses loses all entitlement to compensation for notice (French Supreme Court, Labour Division, 23-10-2024 no. 22-22.917 F-D, Association Essor c/ E).

Real estate law

Consequences of an ancient promise to sell: revocation and invalidity of the price

It is impossible for the promisor to withdraw from the unilateral undertaking to sell unless otherwise stipulated in the contract. Whether the price is too low is determined at the date of the unilateral undertaking to sell and not, as in matters of lesion, at the date of exercise of the option.

Real estate law

The seller's right to occupancy compensation is not conditional on absence of fault on his part

While the seller's bad faith does not deprive him of his right to restitution in respect of the occupation of the property sold after the invalidation of the sale, a purchaser acting in good faith only has to pay this value from the date of the claim (French Supreme Court 3rd Civil Division 5-12-2024 no. 23-16.270 FS-B).

Real estate law

Legal standing for a non-professional creditor in a compulsory sale of the principal residence of a debtor in compulsory liquidation

A creditor with a charge over real property, to whom the declaration of unseizability of a property belonging to a debtor in compulsory liquidation cannot be set up against, may proceed with its sale on seizure. The non-professional creditor's right to bring an action is recognised because it is not an action to order the debtor to pay a sum of money prohibited by article L. 622-21 of the French Commercial Code (French Supreme Court, Commercial Division, 20 November 2024, F-B, no. 23-19.924).

Consequences and Remedies for Italian and European Companies

January 13, 2025 - Prepared by Melchionna PLLC Law Firm, New York

Is there a tangible risk for Italian and European companies exporting goods and services to the U.S., starting January 20, 2025, with the inauguration of the new Trump administration? This question concerns businesses operating in various sectors, including raw materials, manufacturing, fashion, food, beverages and alcohol, mechanics and components, and chemicals, to name just a few.

The Scenario

During his election campaign, Trump stated his intention to target China and Europe and to implement measures similar to those taken during his first administration. At that time, steel and aluminum, for example, were subject to tariffs of 25% and 10%, respectively. This time, however, Trump has pledged to impose generalized protectionist tariffs ranging from 10% to 20%. It is worth noting that Europe has already been threatened with new tariffs if it refuses to import U.S. energy products (coal, oil, and gas). Trump has also declared his intention to introduce 100% tariffs against the “BRIC” bloc (Brazil, India, China, South Africa, Egypt, Ethiopia, Iran, and UAE) if they decide to adopt a currency competing with the dollar.

1. Economic Forecasts in the Event of New Tariffs for Europe

Initially, new tariffs on goods and services imported into the U.S. would make these products more expensive for American consumers (an aspect that—according to many observers—could politically harm Trump in the long term), thus driving inflation higher.

Regarding the European economy, forecasts indicate that tariffs would further burden an already stagnant economy. According to economists at Citi Bank, undifferentiated 10% tariffs could reduce the GDP of the European area by 0.3% over two years. The value of European companies could decrease by 1% or 2% per share. Both institutional and individual investors have already shown signs of disinvesting from the European area and productive sectors most likely to be affected by tariffs, leading to a further tightening of credit availability. Occasional tariff exemptions would undoubtedly have a political justification.

Germany’s Economic Institute (IW) has calculated that Trump’s new tariffs would cost Germany approximately €180 billion over four years. For the French Center for International Economic Studies (CEPII), Italy is expected to suffer a GDP contraction of 1.20%.

These are the direct impacts. Indirect effects appear even more problematic: Trump’s promise to impose tariffs of up to 60% on Chinese goods could lead Asian companies to divert products initially destined for the U.S. market to Europe, resulting in lower prices for European end consumers and reduced profit margins for many European companies (notably, Chinese electric vehicles currently face a 100% tariff in the U.S.).

The prospect of retaliation is challenging and unlikely, as 25% of goods the EU imports from the U.S. consist of oil, coal, and natural gas—products unlikely to be subjected to new tariffs. The same applies to pharmaceutical products. Europe might consider commercial retaliation against China (as it has in the past), although some goods are already subject to high tariffs (for example, Chinese electric vehicles enter Europe with a 35.3% tariff).

2. What is the Political Scenario?

In U.S. law, only tariffs exist (unlike in Italian law, where both tariffs and duties are distinguished). According to many observers, Trump’s statements on new tariffs, both during and after his campaign, aim to force foreign companies and governments to renegotiate their positions. Tariffs, as is well known, have a political basis. Trump and his team have promoted tariffs through an extensive communication campaign via traditional and digital media, as well as social media. In doing so, they have sought to convince American consumers of the significant domestic benefits that tariffs will bring. However, most experts in economics and economic history do not agree with this prediction.

While Trump currently sees tariffs as an expression of "patriotic protectionism" and, above all, as a powerful tool for geopolitical purposes, it will ultimately be end consumers who decide on the efficacy of this policy. What matters for Italian companies exporting their products to the U.S. is to pay attention to short-term policies and recalibrate their commercial operations based on a clear understanding of the available options to maintain stability and continuity.

3. What Are the Legal Grounds?

Article I, Section 8 of the U.S. Constitution grants Congress exclusive authority to legislate on tariffs. However, over time, Congress has delegated this power to the President in certain circumstances. The President could invoke Section 301 of the Trade Act (1974) (as was done for new tariffs on Chinese goods); Section 232 of the Trade Expansion Act (1962) (as was the case for steel and aluminum imports); or Section 203 of the International Emergency Economic Powers Act (IEEPA), which is even faster since it does not require an investigation by federal agencies if the President concurrently declares a national emergency under the National Emergency Act (NEA).

The regulatory framework becomes even more complex when considering the provisions related to tariffs, including exemptions and appeals, sanctions, actions by CFIUS (the U.S. committee overseeing the admissibility of foreign investments), changes to nearshoring rules, and the renegotiation of current bi- or multilateral agreements (especially those with Canada and Mexico).

4. What Are the Impacts and Solutions to Best Prepare?

A significant number of Italian and European companies operating in the U.S. will likely need to assess whether their products and services will be subject to new tariffs. If so, they must quickly decide how to respond. Since the new Trump administration will select goods and services for new tariffs arbitrarily and unpredictably, the response time of affected companies will be crucial for competitiveness and success in the U.S. market. Companies that prepare a response plan today will be able to implement it and successfully navigate the next four years.

Diversified, well-tested, and tailor-made solutions are available.

For further information, please contact Melchionna PLLC Law Firm in New York.

DECREE ON LABOR IMMOBILITY 2025–2026

Published in Official Gazette No. 6,868 (Extraordinary) on December 27, 2024, Decree No. 5,070 (the “Decree”) establishes labor immobility for workers in both the public and private sectors from January 1, 2025, to December 31, 2026. Accordingly, workers protected under this labor immobility cannot be dismissed, downgraded, or transferred without just cause, which must be previously qualified by the Labor Inspector of their jurisdiction.

Beneficiaries of the Decree:(i) Workers hired under indefinite-term contracts starting from the first month of service to their employer.(ii) Workers hired under fixed-term contracts for the duration specified in the contract.(iii) Workers hired for a specific project, as long as their obligation remains unfulfilled.

Exceptions:The Decree does not apply to management-level employees or seasonal and occasional workers. The stability of public officials is governed by the protective provisions of the Public Service Statute Act.

Non-compliance:Failure to adhere to the labor immobility provisions established in the Decree grants the worker the right to request reinstatement, payment of wages and other unpaid benefits, or the restoration of the violated legal situation. Such claims must be filed within thirty (30) consecutive days following dismissal, downgrading, or transfer. These requests will be processed with priority over any other procedure by the Labor Inspectors, in accordance with the Decree with Rank, Value, and Force of Organic Law of Labor and Workers (“LOTTT”).

Employers who obstruct or fail to comply with reinstatement orders or the restoration of the violated legal situation, or those who breach labor immobility provisions, will be subject to sanctions under the Decree and the LOTTT.

Effective Date:The Decree will come into effect on January 1, 2025.

For access to the full Decree, click here.

Banking & Finance

The Venezuelan Central Bank (VCB) established the interest rates applicable to obligations derived from employment relationships (59.30% and 47.65% - October 2024) and to transactions with credit cards (60.00% annual maximum lending rate and 17.00% annual minimum lending rate - November 2024). (Official Gazette of 11/18/2024. Official Notice. Entry into force: Upon publication in the Official Gazette).

Tax

The National Integrated Service of Customs and Tax Administration (Servicio Nacional Integrado de Administración Aduanera y Tributaria - SENIAT) legalized the issue and circulation of liquor warranty seals. (Official Gazette of 11/25/2024. Administrative Ruling No. SNAT/2024/000113. Entry into force: Upon publication in the Official Gazette).

Civil Aeronautics

The National Institute of Civil Aeronautics (Instituto Nacional de Aeronáutica Civil - INAC) issued an Administrative Ruling the purpose of which is to establish the General Conditions of Air Transportation, in relation to the rights and obligations of the passengers that contract for air transportation services, as well as the duties, rights and obligations of the operators of the service of air transportation of passengers, cargo, and mail, in national and international, regular and nonregular operations, within, from and towards the Bolivarian Republic of Venezuela and all matters concerning the civil liability for the damages affecting the users’ interests. Administrative Ruling No. PRE-CJU-GDA398-16, published in Official Gazette No. 6.228 Extraordinary of 05/18/2016, which contains the General Conditions of Air Transportation, was repealed. (Official Gazette of 11/05/2024. Administrative Ruling No. PRE-CJU-GDA-308-24. Entry into force: Upon publication in the Official Gazette).

The INAC issued the following Aeronautical Regulations: Venezuelan Aeronautical Regulation 110 (RAV 110) Safe Air Transportation of Hazardous Goods, the purpose of which is to establish the technical aeronautical rules that will govern the safe air transportation of hazardous goods. Administrative Ruling No. PRE-CJU-107-13, published in Official Gazette No. 6.099 Extraordinary of 05/23/2013, called “Air Transportation of Hazardous Goods”, was revoked. 2.- Venezuelan Aeronautical Regulation 39 (RAV 39) Airworthiness Directives, the purpose of which is to establish the requirements related to the Airworthiness Directives. Administrative Ruling No. PRE-CJU-129-23, published in Official Gazette No. 6.753 Extraordinary of 07/28/2023 that contains Venezuelan Aeronautical Regulation 39 (RAV 39), called ‘Airworthiness Directives”, was revoked. 3.- Venezuelan Aeronautical Regulation 277 (RAV 277) “Aeronautical Meteorological Service”, the purpose of which is to establish the use of the Procedures for the Aeronautical Meteorological Service that integrates the Services into Air Navigation.

Administrative Ruling No. PRE-CJU-GDA-182-19, published in Official Gazette No. 6.462 Extraordinary, dated 07/01/2019 that contains Venezuelan Aeronautical Regulation 277 (RAV 277), called “Aeronautical Meteorological Service” was revoked. (Official Gazette of 11/11/2024, 11/20/2024, and 11/21/2024. Administrative Rulings No. PRE-CJU-346-24, No. PRE-CJU-GDA-411- 24, and No. PRE-CJU-GDA-412-24. Entry into force: Upon publication in the Official Gazette).

Miscellaneous

The National Assembly issued the Law that Approves the “Agreement between the government of the Bolivarian Republic of Venezuela and the government of the People’s Republic of China relating to the Promotion and Protection of Investments”, the purpose of which is to establish, maintain, and consolidate a juridical framework that facilitates and promotes direct reciprocal cross-border investments made by investors of the contracting parties, with the purpose of promoting both countries’ productive development. (Official Gazette No. 6.852 Extraordinary of 11/13/2024). The National Assembly issued the Law of Audit, Regularization, Actions and Financing of Non-governmental Organizations and Notfor-Profit Social Organizations. Article 67 of the Law of Registries and Notaries’ Offices is repealed. All provisions that are contrary to this Law are repealed. (Official Gazette No. 6.855 Extraordinary of 11/15/2024. Entry into force: Upon publication in the Official Gazette).

The Ministry of the Popular Power for Transportation established the minimum and maximum rates for urban transportation service. Likewise, it established the maximum official rate for suburban routes nationwide to be charged by the providers of the public service of ground passenger transportation. The Official Request published in Official Gazette of 03/19/2024 and Resolution No. 014, published in Official Gazette of 03/19/2024, were revoked. (Official Gazette of 11/22/2024. Official Request and Resolution No. 049. Entry into force: As from December 1, 2024). The National Assembly issued the Simón Bolívar Organic Law against Imperialist Blockade and for Defense of the Bolivarian Republic of Venezuela. All legal or sublegal rules that conflict with the Law are repealed. (Official Gazette No. 6.859 Extraordinary of 11/29/2014. Entry into force: Upon publication in the Official Gazette).

Grimaldi Alliance is proud to announce that it has been recognized as the Best Law Firm 2024 at the prestigious AssoNext Awards.

This esteemed accolade, awarded to us for the second consecutive year following our success in 2023, is a testament to the professionalism, dedication, and commitment that underpin our work. It reflects our continuous efforts to deliver outstanding legal services and innovative solutions to meet the needs of our clients in an ever-evolving landscape.

We extend our sincere gratitude to all the professionals within our network, whose expertise and dedication are at the core of our success. We also thank our valued clients and partners, whose trust and collaboration have been fundamental in achieving this milestone.

This recognition reinforces our commitment to upholding the highest standards of excellence and innovation, ensuring that we remain at the forefront of the legal profession. Grimaldi Alliance will continue to pursue its mission of providing top-tier legal services and fostering long-term partnerships built on trust, reliability, and exceptional results.

Faces and Stories of GA

Through this initiative, “Faces and Stories of GA,” we invite you to step behind the scenes of our firm to discover the distinctive blend of human and professional qualities that define GA.

Using the voices of our professionals, we will delve into the most significant moments of their careers, the motivations that drive them, and their insights on the laws and changes shaping our industry.

Today, we are pleased to introduce you to Mallika E.S Margherita, Partner at ILCT Ltd.!

Mallika, a Thai national of Italian heritage. She is a lawyer of a bilingual background. Having grew up in a bilingual environment, Ms. Mallika possesses unique and rare multicultural knowledge. She graduated LLB from a notable Thai university along with an LLM from a US law school. Following her education, she has been practicing law for more than three decades.

What is the most important advice you would give to someone starting this career?

The most important advice I would give to anyone starting a legal career would be to really understand the world around you, not just the law. Law isn’t just about knowing the rules, it’s about understanding people, cultures, and how businesses operate.  In today’s interconnected world, it’s incredibly important to be able to navigate different legal systems, especially in cross-border work. Being bilingual or multilingual is a huge advantage, as it allows you to bridge cultural and legal differences. Don't be afraid to take on challenges, whether that’s a complex cross-border deal or adapting to new legal developments. Law is constantly evolving, so being flexible and willing to learn is key.

What was your main motivation for becoming a lawyer?

I think my motivation came from a mix of curiosity and a desire to make a real impact. Growing up in a bilingual environment, I was naturally drawn to the idea of working across cultures. I wanted to use my legal skills to help people and businesses from different parts of the world. I enjoy the challenge of solving complex problems, particularly when it means opening doors for others in a new market. It’s incredibly satisfying to assist clients in overcoming legal barriers and achieving success in a foreign market.

What are the most important current laws affecting potential investors in your country?

For anyone looking to invest in Thailand, the Foreign Business Act is one of the most important laws to keep in mind, especially because it restricts foreign ownership in certain sectors. But there are ways to work around these limitations, especially if you’re working with Thai partners or using other structures that the law allows. The Board of Investment (BOI) is also a key resource for foreign investors. They offer incentives like tax exemptions and other benefits, depending on the sector you’re investing in—especially in tourism, manufacturing, and tech. Additionally, if you’re considering real estate, there are restrictions on foreign ownership, and the rules can get a little complicated, so it’s always wise to seek legal advice.

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Opening of the application window for the so-called Mini Development Contracts starting February 5, 2025

Support for medium-scale financial investments related to STEP critical technologies

The so-called Mini Development Contract is an incentive promoted by the Ministry of Enterprises and Made in Italy, managed by Invitalia, to support investments aimed at the development or production of critical technologies identified by the European STEP Regulation (EU Regulation 2024/795): digital and deep-tech technologies, clean and resource-efficient technologies, and biotechnologies.

Pursuant to the directorial decree issued on December 20, 2024, by the Department for Enterprise Policies (Directorate-General for Business Incentives), detailed provisions have been established to ensure the effective implementation of the measure, supporting investments ranging from €5 million to €20 million in the above-mentioned critical technology sectors.

The Mini Development Contract provides funding for projects between €5 million and €20 million, targeting enterprises of all sizes for investment initiatives to be carried out in the regions of Basilicata, Calabria, Campania, Molise, Puglia, Sardinia, and Sicily. These investments must focus on the development and/or production of critical technologies outlined in the STEP Regulation or on strengthening their value chain to enhance supply chain security, resilience, and system productivity.

A total budget of €300 million has been allocated, sourced from the 2021–2027 National Research, Innovation, and Competitiveness Program, and distributed as follows:

€100 million under Policy Objective 1 of the PN RIC 2021–2027, designated for SME investments €200 million under the STEP Policy Objective of the PN RIC 2021–2027, available for investments by SMEs and large enterprises

Eligible investments must pertain to a single production site within the following sectors:

Digital technologies and deep-tech innovation Clean and resource-efficient technologies, including net-zero emission technologies Biotechnologies, including medicines listed in the Union's critical medicines inventory

The funding is provided as non-repayable grants, subject to the maximum aid intensities specified in the Regional State Aid Guidelines. Eligible expenses will be covered at the following rates:

55% for small enterprises 45% for medium enterprises 35% for large enterprises

Applications will be ranked based on an evaluation process that considers the following criteria:

Financial independence Contribution of core business operations to revenue generation Environmental sustainability Level of innovation Employment impact

Applications may be submitted exclusively online via Invitalia’s web platform from 12:00 p.m. on February 5, 2025, until 12:00 p.m. on April 8, 2025.

Uruguay  Business opportunity

Green Hydrogen from offshore wind farms

The Uruguayan Government has just announced that it would offer maritime areas for the installation of offshore wind farms aimed at the production and export of green hydrogen and its derivatives. The State-owned oil company (so-called “ANCAP”) plans to issue an international call for interested companies. This would be the first open round in the world for the production of green hydrogen in offshore areas.

Through this process, four (4) dates will be set for companies to submit their bids for four (4) different maritime areas.

An Executive Branch decree issued a few days ago, authorized ANCAP to enter into contracts with third parties in order to conduct feasibility studies for the evaluation and potential production of green hydrogen and/or derivatives from renewable energy.

Such areas would be located approximately 42 kilometers from the coast and will have an average surface area of approximately 270 square miles, with an energy production potential of 3 GW and a green hydrogen production potential of 200,000 tons per year.

The format proposed for the above contracts would contemplate evaluation periods which would range between two (2) and ten (10) years.

Grimaldi Alliance Expands to Hong Kong: New Development in GA’s Presence in the Asia Pacific Region, with Justin Chow & De Bedin Solicitors LLP

GA, an international law and tax firm with 12 offices in Italy and direct offices in New York, Lugano, Brussels, London, and Paris, active in over 60 jurisdictions through its GA partners, led by Managing Partner Francesco Sciaudone, strengthens its presence in Asia with a new office in Hong Kong, in partnership with Justin Chow & De Bedin Solicitors LLP.

Justin Chow & De Bedin Solicitors LLP is a renowned legal boutique in Hong Kong providing top-tier services across various practice areas, including finance, M&A, SFC investigations, blockchain, private equity, data privacy, intellectual property, and a wide range of professional services for the entire Asian market.

Following the appointment of Candice Yang as the coordinator for GA’s Asia Pacific Area, the launch of activities in Hong Kong marks another significant milestone. Hong Kong is one of the world’s leading financial hubs and a key center for international trade and investment. With over 2,500 listed companies and a market capitalization exceeding HK$47 trillion (approximately US$6 trillion), the city offers an ideal environment for global businesses.

“The addition of a prestigious partner in Hong Kong is a key element in GA's strategy for expansion in the Asian market," said Francesco Sciaudone, Managing Partner of GA. “GA continues to be a strategic bridge for entrepreneurs seeking to expand their businesses internationally. Our collaboration with Justin Chow & De Bedin Solicitors will enable us to further enhance our capacity to support companies in Asian markets, providing them with tailored legal and tax services based on an in-depth understanding of the local context.”

This newsletter provides a selection of regulatory news and comments from our SPANISH legal experts on interesting policy developments, recent case law, and new regulatory directions of major industry practices. The aim is to provide an up-to-date tool for quick and easy consultation on the most current and important topics at a SPANISH level.

1. Legal news on foreign investments

On September 1, 2023, Royal Decree 571/2023, of July 4, concerning foreign investments (the "Royal Decree"), came into effect, repealing Royal Decree 664/1999 and further developing the provisions of Law 19/2003, of July 4, on the legal framework for capital movements and economic transactions with foreign countries (the "Law 19/2003").

The Royal Decree establishes mechanisms for controlling foreign investments. Articles 14 to 17 of the Royal Decree introduce a prior administrative authorization regime for certain foreign investments, particularly in strategic sectors of Spain. This control is grounded in Article 7 bis of Law 19/2003.

The Royal Decree also introduces new provisions regarding intragroup financing. This refers to loans or capital injections between companies within the same corporate group when one of the parties is foreign.

1.1 Requirements and obligations

The concept of investment has been expanded as follows:

Foreign investments in Spain: When a foreign company finances a Spanish entity or branch. Spanish investments abroad: When a Spanish company finances a nonresident company within the same group.

Declaration Requirements:

Amount exceeding €1,000,000. Amortization period exceeding one calendar year.

Declaration Obligation:

Intragroup financing transactions meeting the aforementioned criteria must be declared to the Investment Registry of the Ministry of Economy, Trade, and Industry.

Who is responsible for the declaration?

The non-resident company if it finances a Spanish entity. The resident company if it finances a foreign entity.

2. New technical and functional specifications for electronic billing systems

Order HAC/1177/2024, published in the Official State Gazette (BOE), sets forth the technical, functional, and content specifications that electronic and computer systems used for billing by entrepreneurs and professionals must comply with. Its primary objective is to ensure that these systems adhere to the security and transparency standards established in Royal Decree 1007/2023 and Royal Decree 1619/2012.

2.1 Main objective of the Order

The goal is to prevent electronic systems from enabling the manipulation or concealment of accounting, billing, or management data, ensuring that records are:

Intact: Without unauthorized modifications. Preserved: Accessible for consultation. Readable: In standard formats that can be interpreted by the Administration. Traceable: With the ability to track the history of each record. Unaltered: Free from interpolations or undocumented omissions.

2.2 New tax obligations and legal context

The electronic systems must guarantee these characteristics and be duly certified. Invoices generated will include a QR code and, in some cases, a phrase identifying their validity.

This order is based on the new formal tax obligation set forth in Article 29.2.j) of the General Tax Law, which requires manufacturers, marketers, and users of these systems to comply with the necessary security and functionality requirements.

In summary, this order regulates and standardizes billing systems to prevent tax fraud and improve data control by the Administration.

We are delighted to share that our Partners, Francesco Pellone and Gianluigi Serafini, actively participated as speakers at the event organized by ELITE, titled: “Designing Corporate Governance to Support Growth and Development Projects.”

During the event, our Partners made significant contributions to the panel discussion:"Planning Generational Transitions – Tools such as Trusts, Family Agreements, Family Holding Companies, Family Buy-Outs, and Related Tax Profiles." They addressed critical aspects of effective and sustainable corporate governance, offering their expertise and valuable insights to the conversation.

The event took place on January 16th in Milan, gathering representatives from over 100 companies, including:

Designing well-structured corporate governance bodies; Identifying strategic individuals for key roles; Streamlining decision-making processes and enhancing transparency in communication with stakeholders and shareholders.

Us tax planning: strategies for the end of the year

As we approach the end of the year, it’s crucial to consider various US Tax Planning strategies that could impact your tax return in April 2025. From buying a private plane to realizing gains or losses, these actions can help you optimize your tax situation.READ MORE

Donald Trum's victory: economic impacts in the U.S. and consequences for Brazil

Donald Trump’s victory for a new term as President of the United States brings profound implications for the global economy. Trump’s promises to implement protectionist measures, increase tariffs, and cut taxes, along with an aggressive stance toward trade partners, could have significant effects on both international markets and the Brazilian economy.READ MORE

USCIS Policy drive growth in stem and extraordinary ability VISA applications

USCIS introduced significant updates to its policy guidance, providing clearer pathways for STEM professionals (People who work in Science, Technology, Engineering, and Mathmatics) and extraordinary ability individuals to access U.S. immigration benefits.READ MORE

News from Brazil

Integration of startups from the north and northeast regions of Brazil stimulates local innovation ecosysytems

With the support of the Brazilian Trade and Investment Promotion Agency (ApexBrasil), startups from the North and Northeast regions are gaining prominence at Web Summit Lisboa , one of the largest technology events in the world.READ MORE

With a focus on the environment and society, Brazil takes 400 startups to Lisbon

Apex, Sebrae and the federal government double the participation of companies in the Web Summit.READ MORE

Brazil's GDP grows 0.9% in Q3 2024. as expected

Brazil's Gross Domestic Product (GDP) grew 0.9% in the third quarter of 2024 compared to the previous quarter, showing a slowdown compared to the 1.4% growth recorded in the second quarter.READ MORE

Latin American and Caribbean Countries discuss best practices in Digital Governance

Security mechanisms in the digital environment need to be as fast and creative as cybercriminals, in order to minimize risks to the provision of digital services by governments. Illegal practices that cross borders make partnerships between countries, as well as clearer and more efficient regulations, increasingly necessary.READ MORE

Petrobras and Bndes form partnership for restoration in the Amazon

An agreement for ecological restoration with job and income generation in the Legal Amazon was signed by the president of Petrobras, Magda Chambriard, and the president of the National Bank for Economic and Social Development (BNDES), Aloizio Mercadante. The protocol of intentions foresees an investment of R$100 million over the next five years, with R$50 million coming from the Amazon Fund.READ MORE

On 8 December 2024, the new Product Liability Directive officially comes into force, marking a significant evolution in European product liability law. This Directive updates the 1985 framework, addressing modern challenges posed by emerging technologies, digital goods, and AI-driven products.

Key Highlights of the New Directive:

Expanded Scope:

The Directive now explicitly includes software, digital products, and AI systems, ensuring comprehensive coverage of both traditional goods and innovative technologies.

Enhanced Consumer Protections:

Consumers will benefit from clearer and more accessible claims processes, with reduced evidentiary burdens when proving harm caused by defective products.

Increased Responsibility for Manufacturers and Operators:

Companies must ensure that their products—whether physical or digital—meet stringent safety standards. Producers, distributors, and even operators of AI systems may now face liability for damages.

Focus on AI and Autonomous Systems:

With the rise of AI-driven products, the Directive introduces specific provisions for algorithmic accountability, addressing potential risks related to AI behavior and decision-making.

Implications for Businesses:

Organizations operating within the EU must take proactive steps to comply with the new Directive. This includes:

• Conducting thorough risk assessments of their products.

• Implementing stronger safety protocols for AI and software.

• Reviewing insurance coverage to address expanded liability risks.

Why This Matters:

The updated Directive is a direct response to the digital transformation of the global economy. It reinforces consumer confidence in the safety and reliability of innovative products, while holding businesses accountable in a fair and transparent manner.

Grimaldi Alliance is closely monitoring these developments. If your business needs guidance on navigating this new regulatory landscape, our team of experts is here to help.

Grimaldi Alliance, an international law firm with 12 offices in Italy and direct offices in New York, Lugano, Brussels, London, and Paris, as well as a network active in over 60 jurisdictions, led by Managing Partner Francesco Sciaudone, strengthens its presence in South America by consolidating its partnership with VIVANCO & VIVANCO and opening new offices in Chile and Peru.

GA will now be able to support its clients—thanks to the team at Vivanco & Vivanco—with dedicated teams in both Peru and Chile.

This collaboration represents a strategic step forward for Grimaldi Alliance, reaffirming its global leadership in providing legal assistance for the internationalization of businesses, now extending its reach to South America. GA offers tailored support to help businesses grow in the continent’s most dynamic markets.

GA’s operations in Peru will be coordinated by Javier Bedoya Denegri, a lawyer with over 15 years of experience in administrative, dispute resolution, civil, corporate, and infrastructure law, leading a team of 30 professionals located in Lima and Ica.

Operations in Chile will be led by Diego Guerrero, a corporate law expert with a solid international academic background, supported by a team of multidisciplinary professionals. The team offers full-service legal support, including civil, commercial, corporate, labor, and immigration law services.

"The entry into Chile and Peru, along with the strengthened collaboration with Vivanco & Vivanco, allows Grimaldi Alliance to continue its expansion strategy in the Latin American markets," said Francesco Sciaudone, Managing Partner of Grimaldi Alliance. "Grimaldi Alliance confirms itself as a strategic bridge for all entrepreneurs wishing to expand their activities abroad. We are ready to further enhance our ability to assist businesses in the vast South American market, providing them with tailored legal support based on a deep understanding of the local context."

Economic and geopolitical scenarios, role of investments, financial strategies to accompany growth.

3 december 2024

RCS Academy in collaboration with the Corriere della Sera is organising a morning of discussion between entrepreneurs, economic players and representatives of institutions, dedicated to the evolution of the global economy, its impact on financial systems and the business of companies, in a delicate balance between evolving economies and emerging markets.

Themes: digitalisation of financial services, tools to promote the real economy by guaranteeing access to credit and sustainability of the system.

Our Managing Partner Francesco Sciaudone participated as a speaker in the panel entitled ‘The Business Point of View’.

Find out more at the following link: https://rcsacademy.corriere.it/business-talk/geoeconomy-talk/

The event organized by RCS Academy and Corriere della Sera represented an important opportunity for discussion on strategic issues related to global economic and geopolitical scenarios, with a focus on the role of investments and financial strategies to support Europe’s development. The participation of prominent representatives from institutions, businesses, and the banking sector provided valuable insights into the key challenges and opportunities for the continent's economic growth.

Key themes addressed: European Autonomy in Digital PaymentsPiero Cipollone, member of the Executive Committee of the European Central Bank, highlighted a significant vulnerability of the European Union: 64% of card transactions are processed through non-European networks, with an increase in scheme fees from 2018 to 2022. In this context, the introduction of the Digital Euro represents a priority to enhance autonomy and strengthen the role of the euro as a reserve currency and means of exchange at the international level. Role of the Banking SystemLeading banking institutions discussed their contribution to supporting businesses in a complex global context. Roberto Parazzini of Deutsche Bank Italia emphasized the need to move beyond the traditional banking credit model, while Alessandro Decio of Banco Desio highlighted the importance of sustainable models for proximity banks. Marianna Leoni of BCG and other banking representatives, including Angelo Campani of Credem and Riccardo Corino of the BCC Iccrea Group, reiterated the social role of credit institutions in fostering local development. Support for SMEs and Market DiversificationPaolo Gerardini of Assolombarda emphasized the importance of diversifying markets for small and medium-sized enterprises, a crucial element for ensuring resilience and growth. Francesco Sciaudone of Grimaldi Alliance stressed the significance of a strategic and legal approach to facilitate the internationalization of businesses. Representatives of Confcommercio also discussed access to credit for microenterprises, a central issue for supporting local activities. Green Transition and Sustainable FinanceFrancesco Beccali of Terna presented a 2 billion euro investment plan aimed at creating a digital electricity grid to transport renewable energy from southern to northern Italy, using advanced technologies such as sensors and artificial intelligence. Valerio Capizzi of ING outlined the financial sector’s commitment to achieving a global target of up to 7 billion euros in annual loans for environmentally sustainable projects. The Future of Digital TransactionsLuca Corti of Mastercard announced that by 2025, digital transactions in Italy will surpass cash transactions for the first time, marking a significant milestone toward a more digital and cashless society.

The event underscored the need for a strategic and coordinated approach that combines innovation, targeted investments, and collaboration between institutions and businesses. Thanks to the contributions of key players such as Grimaldi Alliance, a clear framework of priorities emerged to strengthen Europe’s competitiveness and foster sustainable and inclusive economic growth.

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In Grimaldi Alliance, we value the well-being of our team!

Specifically, in our Treviso headquarter, we have introduced a Ashtanga Vinyasa Yoga programme to promote a healthier work environment, tailored to help our professionals manage stress and improve both their physical and mental well-being.

A healthy mind is a professional’s most powerful tool

WHY WELL-BEING MATTERS

The legal profession is notoriously demanding: long hours, constant pressure, and the need to make quick, critical decisions. Both body and mind are tested on a daily basis. That’s why it’s essential to find effective ways to manage stress and stay sharp.

Our well-being is the foundation of our success

Grimaldi-Alliance-YogaDownload

COURSE STRUCTURE

The course consists of ten weekly sessions of one hour each, scheduled for 7.15 p.m. Sessions will cover key areas such as posture improvement, breathing techniques for stress management, and meditation for deep relaxation.

Classes are taught by certified instructor.

Invest in yourself – one hour a week can make all the difference

From April 6, 2025, the United Kingdom may abolish the tax regime for non-domiciled residents (Res Non Dom), replacing it with a new special 4-year regime.

Starting from the fifth year, all residents may be subject to ordinary taxation on global income, prompting many taxpayers to consider relocating to countries with more favorable tax regimes.

During the meeting, we will analyze the possible changes of the reform, relocation opportunities for High Net Worth Individuals (HNWI) in Switzerland and Italy, which offer similar flat-rate regimes, and the latest news based on the positions taken by the UK Government.

Agenda

16:30 – 17:00 Welcome and workshop presentation 17:00 – 17:20 Possible abolition of the Res Non Dom regime in light of recent positions taken by the UK Government 17:20 – 17:40 The alternative expenditure-based tax regime in Switzerland 17:40 – 18:10 The regime for new residents under Article 24-bis of the Italian TUIR as provided by the Italian decree 18:10 – 18:30 Round table discussion

Speakers

Arianna Bonaldo, GA Switzerland – Stelva Group Vincenzo Borelli, GA United Kingdom Carlo Cugnasca, GA Italy

Banking and Finance

The Venezuelan Central Bank (VCB) established the interest rates applicable to obligations derived from employment relationships (59.26% and 47.63% - August 2024; 59.23% and 47.62% - September 2024) and to transactions with credit cards (60.00% annual maximum lending rate and 17.00% annual minimum lending rate - September and October 2024). (Official Gazette of 10/29/2024. Official Notices. Entry into force: Upon publication in the Official Gazette). BANKING AND FINANCE TAX Bonded Warehouse Regime and not used, must be delivered to the Regional Management, Sector or Unit of Internal Taxes of the domicile of the taxpayer for destruction; 4) the liquor warranty seals identified with designation F-07-2015 or years preceding 2015 that are in SENIAT’s custody must be destroyed in accordance with the procedures established in the rules that govern the matter. (Official Gazette of 10/08/2024. Administrative Ruling SNAT/2024/000098. Entry into force: Upon publication in the Official Gazette).

Tax

The National Integrated Service of Customs and Tax Administration (Servicio Nacional Integrado de Administración Aduanera y Tributaria - SENIAT) issued an Administrative Ruling with the purpose of regulating the use and period of effectiveness of the Warranty Seals to be placed on the Taxed Species of National and Imported Production. Said Ruling established: 1) the liquor warranty seals acquired by the producers or importers of taxed species may not be transferred, assigned or sold; 2) the liquor warranty seals the issue and circulation of which is authorized by SENIAT may be used for a period of two years as from the date of acquisition; 3) the liquor warranty seals identified with designation F-07-2015 or years preceding 2015, acquired under the Bonded Warehouse Regime and not used, must be delivered to the Regional Management, Sector or Unit of Internal Taxes of the domicile of the taxpayer for destruction; 4) the liquor warranty seals identified with designation F-07-2015 or years preceding 2015 that are in SENIAT’s custody must be destroyed in accordance with the procedures established in the rules that govern the matter. (Official Gazette of 10/08/2024. Administrative Ruling SNAT/2024/000098. Entry into force: Upon publication in the Official Gazette).

Civil Aeronautics

The Ministries of the Popular Power for Ecosocialism and for Transportation issued the rules to coordinate the environmental management in the civil aeronautics activity carried out at the national and international airfields and airports of the Bolivarian Republic of Venezuela. (Official Gazette of 10/11/2024. Joint Resolution. Entry into force: Upon publication in the Official Gazette).

Miscellaneous

The Autonomous Service of Registries and Notaries’ Offices (Servicio Autónomo de Registros y Notarías - SAREN) issued an Administrative Ruling with the purpose of regulating the implementation of electronic means in the processes carried out by the SAREN, in order to optimize the service of registries and notaries’ offices, in relation to the verification of the identity of the executing parties, through the biometric analysis of the user identification elements, in the framework of the electronic handling of the registry and notary processes carried out by said Service. The implementation of fingerprint biometry electronic means will be progressively applied, starting at the notaries’ offices located in the capital region. (Official Gazette of 10/17/2024. Administrative Ruling No. 525. Entry into force: Upon publication in the Official Gazette).

The Global Forum 2024 was the event where the key participants shared their impressions, feelings, and ideas during the event.

Let’s hear their opinions in these short video clips!

Zeynep Gürsoy Ergin , Junior Partner at BALAY, ERYIGIT & ERTEN

Alexander Todorov, Partner at Dimitrov, Petrov & Co. Law Firm

Panagiotis Drakopoulos, Managing Partner at Drakopoulos

Luisa Bossi, Counsel at Grimaldi Alliance

Itzik Amiel, Founder of THE SWITCH

Gianvirgilio Cugini, Founder of STELVA Group

Bahaa Alieldean, Managing Partner at Alieldean Weshahi & Partners

Ade Ayeyemi, CEO at Ecobank 

See more:Global Forum 2024

THE NEW BRAZILIAN LAW 14.995/2024: EMPOWERING SMALL BUSINESSES AND PROMOTING ECO-FRIENDLY INVESTMENTS

Brazil’s President sanctioned Law 14.995, a landmark piece of legislation aimed at permanently extending a range of programs designed to facilitate access to credit for small businesses and low-income individuals. Coming into force on October 11 after being published in the Official Gazette, this law significantly impacts the Brazilian economy by fostering entrepreneurship and sustainability.Read more

COMPLETE GUIDE FOR DIGITAL NOMAD: ESSENTIAL TAX OBLIGATIONS

The digital nomad lifestyle has become increasingly popular. The possibility of working remotely, exploring different countries, offers unique freedom. However, this freedom brings with it legal and tax responsibilities that cannot be ignored.Read more

COMPLETE GUIDE FOR DIGITAL NOMADS: ESSENTIAL LEGAL RULES

An article in the Harvard Business Review defines digital nomadism as “a lifestyle that allows you to take advantage of remote work to travel and reside in different places around the world, often in more accessible destinations”.Read more

BNDES AND US BANK SIGN AGREEMENT FOR INVESTMENTS IN BRAZIL

With the aim of improving and deepening joint investment opportunities in Brazil, the National Bank for Economic and Social Development (BNDES) and the US International Development Finance Corporation (DFC), the development bank of the United States, signed a framework cooperation agreement.Read more

"IT'S A NEW MOMENT IN BRAZIL", SAYS MINISTER DURING THE SIGNING OF THE COOPERATION AGREEMENT BETWEEN BRAZIL AND FRANCE

The Ministry of Culture (MinC) signed an important Memorandum of Understanding between Brazil and France, reaffirming the commitment to strengthen cooperation between the two countries in the cinematographic and audiovisual fields. The event took place during the Rio Market, a market space for the Rio Festival, one of the main events in the Brazilian audiovisual calendar.Read more

STARTUPS INCREASE THEIR FOCUS ON CLIMATE INTELLIGENCE

In times of increasingly frequent bad weather, climate intelligence is gaining prominence in Brazilian agribusiness. And this interest has led agtechs to increase their investment in this area.Read more

AMONG THE WORLD'S 100 MOST PROMISING FINTECHS, 5 HAIL FROM LATIN AMERICA

Last year, Latin America placed four startups on the Fintech 100, a survey by the North American market intelligence platform CB Insights. In 2024, there was an evolution: there are now five Latin names on the list that highlights the most prominent and promising fintechs in the market this year.Read more

IMF RAISES BRAZIL'S GDP GROWTH PROJECTION FOR 2024 TO 3%

The International Monetary Fund (IMF) raised its growth projection for the Brazilian economy this year from 2.1% to 3%. Despite the improvement in expectations for this year, the fund estimates a slowdown in 2025, with growth falling from 2.4% to 2.2%.Read more

Agenda of the day:

09:00 – 10:00 | Welcome Breakfast 

Networking and start of the second day 

10:00 – 10:10 | Speaker Session: Emmanuel Conte, Councillor for Financial, Economic and Patrimonial Resources, City of Milan 

10:30 – 10:45 | Expanding Agribusiness Opportunities 

Massimiliano Cattozzi, Head of Department Agribusiness, Intesa Sanpaolo  

10:45 – 11:00 | Unlocking Potential in Emerging Markets 

Bahaa Alieldean, Managing Partner, GA MENA  

11:00 – 11:15 | Smart Collaboration GA/Survey Results  

11:15 – 11:30 | Speaker Session 

Bernardo Giorgio Mattarella, Of Counsel Grimaldi Alliance  

11:30 – 12:00 | Break 

12:00 – 12:20 | The Hitachi Internationalisation Framework 

Giuseppe Marino, Group CEO, Hitachi Rail 

12:20 – 13:00 | Round Table: Candice Yang, Lawyer and Giulia Lovaste, Counsel Grimaldi Alliance 

14:00 – 14:20 | Africa as the new frontier of growth 

Mahmoud Mohieldin, Former Managing Director of the World Bank 

14:30 – 15:50 | Focus Group Session 

Participants into working groups on specific themes to discuss collaborative opportunities and challenges.  Following the areas with the most referrals, it will be useful to have teams work in 3 groups: M&A, Litigation, Commercial Trading 

16:00 – 16:30 | Focus Group Results 

16:30 – 16:45 | Mobile Check 

16:45 – 17:00 | Speaker Session: Federico Ghella, Presidente Comitato Lavori all’Estero, ANCE  

17:00 – 17:45 | Cultivate a Growth Mindset  

Itzik Amiel, Founder & CEO, THE SWITCH 

17:45 – 18:00 | Concluding Remarks  

See more:Global Forum 2024

Agenda of the day:

09:00 – 10:30 | Speaker Session: Luigi Di Maio, EU Special Representative for the Gulf region 

10:00 – 10:05 | Speaker Session: Edmondo Cirielli, Deputy Minister of Foreign Affairs and International Cooperation of Italy 

10:30 – 11:00 | Enhancing Collaboration Across International Offices 

Open discussion led by: Zsófia Bitai and Cagatay Erten 

Identifying challenges in collaboration between offices  Concrete proposals to increase referrals and operational synergies between locations  Action plan to incentivize inter-jurisdictional collaboration 

11:00 – 11:15 | Coffee Break 

11:15 – 12:00 | Review of the Constitution of the "Legal Umbrella" Company in Belgium 

Led by: Daniel Fesler and Michael Bray 

Presentation of the legal and fiscal structure of the "Legal Umbrella" company  Discussion of the advantages and operational implications for the Grimaldi Alliance network  Proposals for optimizing the legal framework. 

12:00 – 12:30 | Network Expansion and New Growth Opportunities  

Open discussion led by: Luisa Bossi and Gianluigi Serafini 

Identifying strategic jurisdictions for expanding the network.  Discussion of opportunities to attract new partners or members.  Analysis of emerging legal trends and markets to explore. 

12:30 – 12:50 | Focus on Local and Multinational Clients and Expanding the Global Client Base  

Open discussion led by: Panagiotis Drakopoulos and Lisa Alice Julien 

Identifying key sectors and multinational clients to target  Defining a plan to improve Grimaldi Alliance’s positioning with global clients  Strategies to attract new international mandates 

12:50 – 13:00 | Closing and Next Steps 

Led by: Francesco Sciaudone 

Summary of key points and decisions  Assigning responsibilities and outlining next steps for each member  Confirmation of future meetings and major upcoming events 

15:00 – 15:10 | Welcome Greetings by Francesco Sciaudone, Michael Bray, and Daniel Fesler 

Francesco Sciaudone, Michael Bray, and Daniel Fesler officially welcome the attendees and introduce the event 

15:10 – 15:30 | Opportunities in financial sector 

Giovanni Sabatini, Senior Advisor, Grimaldi Alliance 

15:30 – 15:50 | The Future of Grimaldi Alliance by Francesco Sciaudone 

Francesco Sciaudone presents the strategic vision and future directions of the Alliance 

15:50 – 17:20 | Speakings Session: Vojtěch Jiraský and Shady William

17:30 – 18:10 | Narration of the Journey Leading to GA Perfume 

Presentation of the journey that led to the creation of Grimaldi Alliance's olfactory identity 

18:15 – 18:30 | Speaker Session: Mario Nava, Director-General – Directorate General “Employment, Social Affairs and Inclusion” (EMPL) 

18:30 – 18:35 | Concluding Remarks by Francesco Sciaudone 

Francesco Sciaudone wraps up the day with a summary of the discussions and previews the next day’s activities 

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Agenda of the day:

13:00 – 13:30 | Welcome and Strategic Updates

Introduction by Francesco Sciaudone Overview of the latest developments at Grimaldi Alliance Focus on the successes achieved since the last meetin

13:30 – 16:30 | Areas for Improvement and Growth Opportunities

Discussion on the following areas for improvement: Transition from a national firm to a global alliance in client perception: How can we position ourselves more decisively as a global player in the minds of current and potential clients? Reaching legal multinational companies: Strategies to connect with and work with large multinational corporations Increasing referrals and exchanges between member firms: How can we enhance collaboration and referral flow within the alliance to boost shared business? Entering or expanding into new markets where there is a demand for specialized legal services Exploring opportunities for new service offerings or legal products that could attract a wider client base Identifying legal tech solutions that could improve efficiency, client service, and internal collaboration Suggesting tools or methods to improve internal communication and foster a sense of community within the Alliance

Open discussion: gathering specific feedback and suggestions16:30 – 16:45 | Break16:45 – 18:30 | Conclusions and Next StepsSummary of the proposed ideas

Definition of an action plan with short- and long-term objectives Identification of immediate priorities for the upcoming year Allocation of resources and responsibilities to address the areas for improvement

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We are pleased to announce the beginning of the Global Forum, an event that underscores our expanding international presence. With over 60 jurisdictions within our network, under the leadership of our Managing Partner Francesco Sciaudone, we are prepared to host the sixth edition of our International Summit in Milan.

From November 4th to 6th, representatives from around the globe will convene to discuss market trends, future prospects, emerging technologies, and innovation. These workshops, held at our Milan headquarter, will provide a significant opportunity to exchange expertise and perspectives from various countries, offering a comprehensive view of the global market and introducing new challenges for growth and consolidation.

“The Global Forum represents three days of intensive work and networking for us, but also an event that fills us with pride for having established such an extensive and valuable network in a short period. The challenges are numerous, but our objectives are clear and well-defined. Grimaldi Alliance is increasingly ready to compete in international markets,” stated Francesco Sciaudone.

This prestigious event will bring together lawyers from 25 countries, offering a unique opportunity for open dialogue and the exchange of ideas. It will be an occasion to host our esteemed clients, reflect on past achievements, and strategize for future growth. Central to the program are two round tables where we will explore the economic challenges that companies face in an increasingly complex and international context.

Through these events, we aim to foster a collaborative environment where insights can be shared, mutual learning can occur, and stronger relationships can be built to drive our collective success forward.

Stay tuned for further updates and details about the event:- Day one: 4 November- Day two: 5 November- Day three: 6 November- Live Interview

Banking and Finance

Paraguay reaches investment grade for the first time in its history

The risk rating agency Moody's announced that it raised Paraguay's credit rating from Ba1 to Baa3, granting it investment grade for the first time in its history, reported the Ministry of Economy and Finance (MEF) on past July 24, 2024. Paraguay joins a select group of countries in the region to have the sovereign degree, Chile, Colombia, Mexico and Peru.

In a statement, they indicated that this stable outlook is reached after 26 years when the rating agency assigned a rating to Paraguay for the first time and after 9 years since the last upward review. "This unprecedented achievement is based on the country's solid economic fundamentals and its long history of macroeconomic stability," the MEF said.

They claim that it is the result of more than 20 years of responsible, consistent and predictable public policies. Prudent management of macroeconomic policies was able to achieve and preserve the sustainability of public finances and maintain low inflation

Tax

Agreement between Paraguay and Spain to avoid double taxation finally in force

After ratification by Paraguayan Law Nr. 7.271/2024 and publication in the Official bulletin of the Spanish Kingdom on July 29, 2024, said important agreement for the economic relationships between both countries shall be in force starting October 14, 2024, having effect for all tax purposes since January 1, 2025.

The agreement comprehends the Personal Income Tax, Corporate Tax and Non Resident income taxes in both countries (the so called IRP, IRE and IDU, and INR in Paraguay and IRPF, IS and IRNR in Spain) document observes OECD standards and includes measures to prevent tax base erosion and profit shifting (BEPS), affecting to Personal and Company income taxes in both countries (including income taxes for non-residents), which must now be ratified by the respective Congresses for its entry into force. Model Tax Convention on Income and on Capital 2017 shall be applicable for the interpretation of articles 5 (permanent establishment) and 7 (entrepreneurial benefits) of said Agreement.

Energy

Amendment of Law "On the Independent Production and Transmission of Electric Energy (PTIEE)"

On August 20224 Law No. 7299/2024 that amend Law Nr. 3009/2006 was enacted to foster private investments for the generation of renewable electricity through small hydroelectric plants (SHPs), by introducing correction of concepts that blocked the previous legislation to be applicable and improving the legal framework, by extending the threshold to grant licenses up to 50 MW and generation greater than 50MW should be subject to international public tenders, without the requirement of a risk-sharing contract with the national utility company (ANDE) as stated in the previous Law, although it retains a first call right to acquire the energy generated in case it is not exported or it is needed in the internal market.

Among other changes, the Ministry of Public Works and Communications replaced a Council of several Ministries (MOPC, Environment, Industry and Trade, Foreign Affairs) that made the procedure very bureaucratic. It must be clarified that shall Law is only applicable for the generation of electricity from the use of natural gas and/or minor hydroelectric generation, which also includes cogenerators and self-generators. This Law does not apply to other renewable energies (solar, wind) governed by Law No. 6977/2023, on Non-Conventional Renewable Energies (NCRE).

Public Procurement

Enactment of Decree Nr. 2264/2024, which regulates Law No. 7021 of December 9, 2022, "On Public Supply and Procurement".

This decree imposes a significant advance in what has to do with administrative management in public procurement. It seeks to improve efficiency, transparency and all flexibility in everything that has to do with public procurement processes. There are updates in terms of terminology, structure, facilitating reading and limiting the search for information and providing greater clarity to the management of State procurement, reducing the deadlines that have to do with protests, reconsideration appeals and deadlines for responses from public institutions to the DNCP.

A special type of bidding that he highlighted is joint procurement, which he described as an innovation in public procurement. It consists of public institutions coming together to buy goods or services, in search of efficiency through the implementation of economies of scale and administrative standardization. The annual average of the awards is USD 3.246 million, with 9.513 procedures and 3.266 suppliers.

"Argentina Under Milei: A New Landscape for Investment

12 Questions to Guide Your Opportunities"

Abstract

Javier Milei, elected President of Argentina in November 2023, has embarked on a radical economic reform agenda aimed at addressing decades of economic mismanagement characterized by high inflation, fiscal deficits, and a bloated public sector.

His administration has implemented a series of measures designed to stabilize the economy, reduce inflation, and encourage foreign investment.

Milei's leadership has significantly influenced Argentina's international relations, marking a dramatic shift from previous policies. The country has moved towards a more ideologically driven foreign policy, prioritizing alliances with Western liberal democracies while distancing itself from traditional partners in Latin America and beyond.  Milei advocates for aligning Argentina with what he terms "the free world," emphasizing support for liberal democracies and opposing authoritarian regimes. His administration promotes a doctrine of foreign relations focused on defending liberal values and fostering free trade.

Questions and answers

1. What measures has been already taken by Milei’s administration for controlling inflation and obtaining Fiscal Surplus?

Monthly inflation rates have decreased significantly from approximately 25% at the end of 2023 to about 3.5% by September 2024 (2,5% estimated October 2024). However, comparing with other economies, annual inflation remains extremely high at around 237%.

Milei projects inflation will drop to 104.4% by the end of 2024 and further to 18.3% by December 2025.

In addition, the administration has implemented severe and deep austerity measures, including slashing government spending and eliminating state subsidies. As a result of that, for the first time in years, Argentina has achieved a fiscal surplus.

2. How the currency and international trade barriers imposed by former Argentina government has been modified under Milei's leadership?

The Argentine peso was devalued by 50% shortly after Milei took office. This devaluation is part of a broader strategy to align the currency with market realities while maintaining a controlled depreciation rate.

As of October 2024, Argentina's foreign exchange control regulations remain complex and multifaceted, reflecting ongoing economic challenges and the government's efforts to stabilize the economy. The Central Bank of Argentina (BCRA) continues to enforce stringent measures aimed at controlling capital outflows and managing the value of the Argentine peso amid persistent inflation.

Argentina operates a system with multiple exchange rates for the U.S. dollar, including Official Rate, used for regulated transactions within the banking system and Blue Rate, an unofficial rate used by unlicensed money changers, typically higher than the official rate (currently + 15%)

As of today, certain bureaucracy on access to Foreign Currency still applies. It is mandatory to schedule the access to foreign exchange markets for various transactions, including payments to foreign creditors and suppliers (usually 30 days after the nationalization of the goods or services). It is expected a gradual easing of currency restrictions as the government aims for greater economic stability. A potential unification of exchange rates is planned for the first quarter of 2025, which could simplify the current system.

On the other hand, Javier Milei has implemented a series of transformative policies aimed at revitalizing and enhancing foreign trade, including but not limited to the elimination of Import Licensing.  Milei abolished the previous import licensing regime (SIRA), allowing for greater ease in importing goods. This deregulation is expected to facilitate smoother trade flows and reduce bureaucratic hurdles for foreign businesses looking to export to Argentina.

Also, by reducing Export Duties, which have historically been a barrier to trade. This move is expected to incentivize exports by improving profit margins for exporters, thereby encouraging them to expand their operations internationally.

By adjusting the exchange rate and removing artificial barriers to imports, the government aims to improve the trade balance, which is essential for restoring confidence among foreign investors and trading partners.

3. What is the status of Argentina's relationship with the IMF and other multilateral bodies?

As of October 2024, Argentina's relationship with the International Monetary Fund (IMF) and other multilateral institutions is characterized by ongoing negotiations, fiscal restructuring efforts, and a complex economic environment.

Argentina is currently under a 30-month Extended Fund Facility (EFF) arrangement with the IMF, which was initiated to support the country's economic stabilization efforts. The EFF agreement includes a total commitment of approximately $44 billion, making it one of the largest agreements ever granted by the Fund. As of June 2024, the IMF Executive Board completed its eighth review of this program, indicating that Argentina has met several of the fiscal and monetary targets set forth in the agreement.

Argentina also maintains an ongoing relationship with the World Bank, which provides financial and technical assistance aimed at promoting sustainable development. The World Bank's focus includes enhancing agricultural productivity and supporting social protection programs for vulnerable populations affected by economic instability. The World Bank has been involved in projects aimed at improving infrastructure and promoting renewable energy sources in Argentina, aligning with global sustainability goals.

Argentina also engages with regional development banks such as the **Inter-American Development Bank (IDB). The IDB has committed to financing various infrastructure projects that are crucial for enhancing connectivity and economic growth within Argentina.

4. What significant legal reforms have been enacted under Milei? How do these reforms could impact on foreign investment?

Milei's government has pushed through significant legal reforms aimed at liberalizing the economy.

The administration passed an omnibus reform bill, "Ley de Bases y Puntos de Partida para la Libertad de los Argentinos" (Law of Bases and Starting Points for the Freedom of Argentines), with the primary aim to modernize the Argentine economy by promoting deregulation and reducing public sector involvement in economic activities.

“Ley Bases” was officially promulgated on June 27, 2024, following extensive negotiations in Congress. This comprehensive law includes over 200 articles addressing various aspects of Argentine life, including taxation, labor laws, public spending, and privatization of state-owned enterprises granting broad executive powers for deregulation and privatization initiatives.

5. What are the main goals of “Ley Bases”?

Privatization Initiatives: The law facilitates the privatization of several state-owned companies, although initial proposals were scaled back significantly from a broader plan to privatize dozens of firms. Key companies like YPF (oil & gas) and Aerolíneas Argentinas (airline) were excluded from privatization efforts but could be subject to other specifics regimes allowing the participation of private investors. This move is intended to reduce the fiscal burden on the government and attract foreign investment.

Labor Law Reforms: The reforms include significant changes to labor laws intended to make it easier for employers to hire and fire employees. In detail:

Impact on workers' Rights, easier dismissals and employment elexibility, makes it easier for employers, including banks and corporations, to dismiss full-time workers at will. This change is expected to lead to a rise in the use of contingent labor, such as gig workers and temporary employees, effectively undermining job security for many workers. Limitations on collective bargaining, by including provisions that limit the right to strike, potentially weakening the bargaining power of unions. It abolishes penalties for irregular contracts and allows for longer working hours (up to 12 hours per day), which could lead to increased workloads without corresponding compensation. The law facilitates mechanisms that can suppress union activities, including restrictions on automatic dues payments from non-members (solidarity dues). This change threatens the financial stability of unions, making it harder for them to operate effectively and represent their members' interests Reprisals against strikers, including reprisals against public sector strikers, such as non-payment of wages, suspensions, and layoffs. Tax Burdens on low-income workers: The introduction of new income taxes for low-wage earners (e.g., single workers earning $2,000 annually) places additional financial pressure on already struggling workers, potentially exacerbating economic hardship and reducing their ability to organize or resist unfavorable labor conditions. Promotion of registered employment: The law encourages formal employment registration by providing incentives for businesses that comply with labor regulations.

Fiscal Package: Accompanying the Ley de Bases is a fiscal package that reinstates income taxes while lowering the taxable income floor. This measure is expected to generate additional revenue for the government amidst a backdrop of soaring inflation. Also, a new framework for taxation is established, including the modifications in personal property and internal taxes, and regularization programs for tax obligations to encourage compliance and investment.

Emergency powers: The law grants Milei special emergency powers for one year, allowing him to govern by decree in various sectors including economic and social matters. This has raised concerns about potential overreach and lack of legislative oversight.   - The law declares a state of emergency in economic, financial, fiscal, administrative, social security, tariff, health, and social matters for one year. This allows the executive branch to govern by decree until December 31, 2025, facilitating rapid implementation of reforms without extensive legislative approval.

Deregulation measures: The reforms aim to reduce bureaucratic hurdles across various sectors, particularly in oil and gas, where previous strict export quotas are being lifted. This is intended to attract foreign investment into key industries, for instance, by lifting export quotas in agriculture and simplifying regulations for businesses to foster a more favorable investment climate.

Investment Incentives: The law creates an Incentive Regime for Large Investments (RIGI for its acronymous in Spanish), which includes tax breaks and legal protections for qualifying projects deemed to be in national interest. This aims to stimulate foreign direct investment in key sectors (specifically described in next questions).

6. Which are the eligibility conditions for applying to RIGI?

RIGI has the primary objective of provide long-term legal guarantees necessary for attracting multi-million-dollar investments, by stimulating economic development and enhancing competitiveness across various sectors, as well as to promote job creation and increase exports of goods and services.

RIGI is open to both Argentine and foreign companies that commit to investing a minimum of USD 200 million in qualifying projects. The RIGI was officially published on July 8, 2024, and companies have a two-year window to apply for its benefits, with a potential one-year extension. The regime is designed to be operational immediately upon publication at the Official Gazette. Specific sectors eligible for these incentives are described below:

- Forestry

- Tourism

- Infrastructure

- Mining

- Technology

- Steel

- Energy

- Oil and Gas

- For offshore oil and gas exploration, the minimum investment requirement is set at USD 600 million.

Recent updates to the RIGI have expanded its scope to include electric and hybrid vehicle production within the technology sector. This inclusion reflects Argentina's strategic focus on sustainable industries and aligns with global trends toward electrification.

7. How RIGI protects investors?

Under the RIGI several legal protections are offered to investors (local or foreign). These protections aim to create a stable and secure environment for investment, addressing concerns that international investors may have regarding regulatory changes and potential risks associated with investing in Argentina.  The main measures are:

Regulatory Stability: 30-Year Stability Guarantee: The RIGI guarantees that the rights, protections, and incentives provided under the regime will remain stable for 30 years. This means that any newly imposed taxes or increases in existing ones will not apply to projects under RIGI, ensuring long-term predictability for investors.

Tax and Customs Incentives - secured rights over incentives: Investors have secured rights akin to ownership over tax and customs incentives. This protection ensures that these benefits cannot be altered by future regulations, providing a layer of security for financial planning.

Dispute Resolution mechanisms - International Arbitration. Choice of law and jurisdiction: In addition to the Treaties to Protect FDI already executed by Argentina, The RIGI allows disputes between Argentina and companies participating in the regime to be resolved through international arbitration freely agreed by the Parties. If a legal dispute cannot be settled within 60 days, companies can bypass national courts and go directly to independent arbitration bodies. This provision is crucial for investors who may fear biased treatment in local courts.

Protection against expropriation - guarantee against confiscation: The regime provides assurances that investments will not be subject to confiscatory or expropriation acts. This protection is vital for foreign investors who may be concerned about the security of their assets in Argentina.

Rights to repatriate profits. Free availability of funds: Investors have the right to repatriate profits, dividends, and interest without facing restrictions, if the funds have been settled through the foreign exchange market. This ensures that investors can access their returns without bureaucratic hurdles.

Legal protections for assets - Full availability of assets: The RIGI guarantees that all assets allocated to the execution of investment projects will remain fully available without restrictions, enhancing investor confidence regarding asset management.

Special provisions for Long-Term Strategic Export Projects: For projects classified as "Long-Term Strategic Export Projects," additional legal protections may apply, extending stability guarantees based on project timelines and milestones.

8 Which are other RIGI’s key benefits for investors?

Eased Currency Liquidation Requirements: Under the RIGI, foreign investors are granted flexibility regarding the liquidation of foreign currency earnings. For the first two years, projects under RIGI are required to liquidate only 80% of their dollar income in the official exchange market. This is a significant reduction compared to standard requirements, allowing investors to retain a larger portion of their earnings. After the initial period, the liquidation requirement decreases to 60% after three years and ultimately to 0% after four years. This means that after four years, projects will not need to bring any new U.S. dollars into the official exchange market, providing investors with greater control over their foreign currency.

Exempt from standard foreign currency obligation: Single Purpose Vehicles (SPVs) entities adhering to the RIGI are exempt from the obligation to enter and settle foreign currency through the foreign exchange market for specific percentages based on their operational timeline. For instance, they can retain a higher percentage of their foreign currency earnings as they progress through different stages of their investment.

Advance Collections and Financing: Advance export collections and pre-financings are also exempt from the obligation to enter and settle through the FX Market, allowing for more straightforward financial operations without stringent currency conversion requirements.

Free Availability of Foreign Currency: for local or external financing and repatriation of profits.

Reduced Corporate Tax Rate: Investors participating in projects under the RIGI will benefit from a reduced corporate income tax rate of 25%, down from the standard rate of 35%. This reduced rate is locked in for a period of 30 years, providing long-term stability for investors.

Exemptions from New Taxes. Tax Stability**: Projects under RIGI are exempt from any new taxes that may be introduced over the next 30 years. This provision ensures that investors will not face unexpected tax increases during their investment period.

Import Duty Exemptions: Capital Assets and Machinery**: Projects under RIGI are exempt from import duties on capital assets, machinery, and spare parts necessary for their operations. This exemption significantly lowers the initial costs for foreign investors.

Export Duty Exemption: Initial Period: Projects will be exempt from paying export duties for a period of 3 years, or two years for specially qualifying “strategic exports.” This exemption encourages export-driven businesses by enhancing profit margins.

Dividend Tax Reductions: The tax rate on dividends is reduced to 7% during the first three years of the project, further decreasing to 3.5% after seven years. This reduction enhances returns for investors on their profits distributed as dividends.

Accelerated Amortization and Depreciation: Depreciation Schedules: The regime allows for accelerated amortization and depreciation schedules, enabling investors to recover costs more quickly and reduce taxable income in the early years of operation.

Transfer of Net Operating Losses. Loss Transferability: Investors can transfer (sell) any remaining Net Operating Losses (NOLs) after the conventional five-year period from accrual, providing additional financial flexibility.

9. What sectors are taking advantage of RIGI?

The agriculture sector stands to gain significantly from the RIGI through enhanced export capabilities and reduced operational costs due to tax exemptions and duty-free imports of necessary equipment.

The energy sector, with Argentina's vast natural resources, particularly in oil and gas, is expected to attract substantial investments aimed at exploration and production. The special provisions for offshore projects signal a commitment to fostering growth in this critical sector. In this sense, TGS, Argentine energy company TGS presented a project seeking to invest USD 700 million in expanding a pipeline connecting Vaca Muerta with Buenos Aires, marking it as one of the first major investments under the new regime.  Also Petrona’s representatives from Malaysian oil and gas company Petronas met with Argentine officials regarding potential investments aligned with the RIGI framework.

The mining sector, particularly lithium extraction crucial for battery production, is poised for growth under the RIGI. The incentives provided can enhance competitiveness and attract foreign investment.

The inclusion of technology-related projects under the RIGI presents opportunities for innovation-driven investments in areas like biotechnology, software development, artificial intelligence, and more.

10. What can be expected in terms of deregulation of the Economy?

Minister Sturzenegger, in charge of the deregulation minister, has outlined further reforms that are anticipated to complement Milei's initial legislative agenda:

Expansion of Deregulation: Proposed measures include further deregulation across multiple sectors such as energy, finance, transport, infrastructure and agriculture, aiming to enhance competitiveness and attract international investors.

Tax Incentives for Investment: New tax incentives are being discussed to encourage both domestic and foreign investments in strategic sectors like technology and renewable energy.

Social Security Reforms: Plans are underway to reform social security systems with an emphasis on sustainability while potentially reducing benefits for future retirees as part of broader austerity measures.

Continued Labor Market Flexibility: Additional proposals may include further amendments to labor laws that would enhance flexibility for businesses in workforce management while potentially facing pushback from labor unions.

Infrastructure Investment Initiatives: To address critical infrastructure gaps, there may be initiatives aimed at public-private partnerships (PPPs) to leverage private capital for public projects.

11. What the market expects from Argentina in the coming years?

The market expects Argentina to experience a challenging economic landscape in the short term, followed by a significant recovery, with growth projections indicating a rebound of 5% in 2025 after a contraction of approximately 3.5% in 2024. This outlook is supported by various sources, including the IMF, which anticipates that structural reforms and stabilization efforts under President Milei will lay the groundwork for future growth, driven by improved agricultural production and investments in the energy sector.

The OECD also echoes this sentiment, highlighting an upturn for the Argentine economy post-2024, contingent on successful implementation of fiscal adjustments and inflation control measures.

The World Bank also forecasts a contraction of 3.5% in 2024, similar to the IMF's assessment. They predict that economic recovery will begin in 2025, with growth projected at 5% driven by better weather conditions for agriculture and normalization in production levels after a challenging year.

BBVA Research predicts that Argentina will experience an average decline of 4% in GDP for 2024 but expects a rebound starting in the second half of the year. Their outlook suggests that after the initial phase of economic adjustments, Argentina could see significant recovery as fiscal policies stabilize and inflation begins to ease.

According to Trading Economics, the GDP growth rate for Argentina is expected to be around -1% by the end of 2024, with projections indicating a gradual recovery to approximately 0.8% in 2025 and 1% in 2026. These estimates reflect cautious optimism about Argentina's long-term economic prospects following necessary reforms.

In the same understanding, several articles were already published by international media, as Financial Times and Bloomberg,[1]

In addition, significant backing has emerged from influential tech billionaires, including Elon Musk and Mark Zuckerberg. Their support is crucial for promoting investment in Argentina, particularly in sectors like technology and renewable energy.

Elon Musk, the CEO of Tesla and SpaceX, has publicly expressed interest in Argentina's potential as a hub for lithium production, essential for electric vehicle batteries. His endorsement is seen as a critical signal to other investors about the viability of investing in Argentina's burgeoning lithium sector, which is rich in natural resources.

Mark Zuckerberg co-founder of Facebook (now Meta) has also shown interest in expanding technology investments in Latin America. His company’s initiatives to enhance internet connectivity and digital services align with Milei’s goals of fostering a more robust digital economy.

Despite short-term contractions, analysts remain optimistic about Argentina's long-term growth potential due to its vast natural resources, educated workforce, and strategic position within Latin America. The country’s rich agricultural base and emerging technologies are viewed as key drivers for future economic expansion.

12. What opportunities can Argentina offers to EU countries within the framework of the EU-MERCOSUR Agreement?

MERCOSUR, or the Southern Common Market, is a regional trade bloc established in 1991, comprising Argentina, Brazil, Paraguay, and Uruguay as its founding members. Venezuela's membership was suspended in 2017, while Bolivia is in the process of ratification. MERCOSUR aims to promote free trade and the fluid movement of goods, people, and services among member countries, enhancing economic integration and cooperation.

Within MERCOSUR, Common External Tariff (CET), applies to imports from non-member countries and ranges from 0% to 35%, depending on the product category. For most products traded within MERCOSUR, tariffs are significantly lower or non-existent. Approximately 80% of products traded between MERCOSUR members are exempt from tariffs due to the CET's implementation since 1995. Sensitive products, such as textiles and automobiles, may still face higher tariffs.

The Import Taxes for products with Certificate of Origin, has Preferential Tariffs: Products originating from MERCOSUR member countries benefit from reduced or zero tariffs when imported into another member country, provided they have a valid Certificate of Origin. This certificate confirms that the goods are produced within the bloc. While many goods may be exempt from import duties under the CET, additional charges such as Value Added Tax (VAT) and statistical fees may still apply. Products exported with a Certificate of Origin to other MERCOSUR countries typically do not face additional export duties beyond national regulations.

Negotiations between MERCOSUR and the European Union (EU) for a comprehensive free trade agreement began in 2000. The agreement aims to establish a bi-regional free trade area that encompasses three main components: (i) Political Dialogue: Strengthening political ties and cooperation on global issues, (ii) Trade and Economic Issues, reducing tariffs and barriers to facilitate trade, and (iii) Cooperation: Enhancing collaboration in various sectors, including technology, agriculture, and sustainable development.

The Key Benefits of the MERCOSUR-EU Agreement are so far:

Market Access: The agreement is expected to provide MERCOSUR countries with preferential access to the EU market, which is one of the largest economies globally. This access will enhance export opportunities for agricultural products, industrial goods, and services.

Economic Growth: By reducing tariffs on goods traded between MERCOSUR and the EU, the agreement could stimulate economic growth in both regions. For MERCOSUR countries, this means increased exports of key products such as beef, soybeans, and other agricultural commodities.

Investment Opportunities: The agreement is likely to attract foreign direct investment (FDI) from EU companies looking to establish operations in MERCOSUR countries. This investment can lead to job creation and technology transfer, further bolstering local economies.

Sustainable Development: a significant component of the negotiations includes commitments to sustainable development practices. The agreement incorporates environmental standards that align with international commitments, promoting responsible production methods.

Strengthening Ties: The agreement aims to deepen political and economic ties between two major regions, fostering cooperation on global challenges such as climate change, trade disputes, and social issues.

Diversification of Trade: For EU countries, engaging with MERCOSUR allows for diversification of supply sources and reduces reliance on single markets or regions. This is particularly relevant as geopolitical dynamics shift globally.

 Status of the negotiations:

As of October 2024, negotiations between the European Union (EU) and the MERCOSUR are progressing with renewed momentum. Here are the key developments and challenges surrounding the negotiations.

Spanish Prime Minister Pedro Sánchez has indicated that the EU is "very close to closing" the long-delayed free trade agreement with MERCOSUR. He emphasized the importance of two upcoming events: the G20 summit in Rio de Janeiro on November 18-19, 2024, and a MERCOSUR summit in December 2024, as critical opportunities to finalize the agreement.  The European Commission has expressed its determination to proceed with the negotiations, highlighting the economic and geopolitical significance of sealing the deal. Olof Gill, a spokesperson for trade issues, reiterated that the agreement is crucial for both regions.

Brazilian officials remain optimistic about concluding an agreement this year, reflecting a commitment to enhancing trade relations with Europe. The Brazilian Ministry of Industry and Trade has indicated that progress is being made in discussions. While some officials suggest that a signing during the G20 in Brazil in November 2024 summit is possible, others view it as "very hypothetical" given ongoing disagreements among EU member states regarding environmental protections and agricultural impacts.

[1] https://www.bloomberglinea.com/latinoamerica/argentina/que-necesita-vaca-muerta-para-superar-el-millon-de-barriles-segun-el-presidente-de-shell-argentina

La Ley de Conciencia y Acción Climática Comunitaria en Honduras:

La Ley de Conciencia y Acción Climática Comunitaria (Decreto 61-2024) busca enfrentar los desafíos derivados del cambio climático mediante la participación de las comunidades hondureñas. Esta ley establece un marco legal para que los ciudadanos, junto con las autoridades locales, adopten medidas concretas de mitigación y adaptación al cambio climático y se enfoca en integrar el conocimiento local con estrategias nacionales para crear un impacto significativo y sostenible en el medio ambiente.

Uno de los aspectos más importantes de la ley es la promoción de prácticas agrícolas- sector clave para la economía hondureña- sostenibles y la conservación de los recursos naturales. La ley incentiva a los pequeños productores, agricultores, ganaderos, entre otros a adoptar técnicas que reduzcan las emisiones de gases de efecto invernadero y mejoren la resiliencia frente a eventos climáticos extremos, como sequías e inundaciones que tanto afectan al país. Estas acciones se acompañan de programas de capacitación y apoyo técnico para garantizar su implementación efectiva.

La Ley también fomenta la reforestación y la protección de áreas naturales vulnerables. A través de esta normativa, las comunidades locales son incentivadas a participar en proyectos de reforestación que no solo contribuyen a la captura de carbono, sino que también fortalecen la biodiversidad y protegen las fuentes de agua. Las autoridades locales están obligadas a diseñar y ejecutar planes de manejo forestal en conjunto con las comunidades, asegurando un enfoque participativo en la conservación del medio ambiente.

Además, el Decreto 61-2024 establece un sistema de financiamiento para proyectos comunitarios relacionados con la acción climática. El Fondo de Acción Climática Comunitaria canalizará recursos para apoyar iniciativas locales que busquen reducir los impactos del cambio climático. Esto incluye desde proyectos de infraestructura verde, hasta programas de educación ambiental con especial atención en las zonas rurales y aquellas más afectadas por los efectos climáticos.

Al integrar a las comunidades en el proceso de toma de decisiones y acción, la ley no solo promueve una mayor conciencia ambiental, sino que también garantiza una mayor equidad y sostenibilidad en los esfuerzos nacionales para proteger el medio ambiente y mitigar los efectos del cambio climático en Honduras.

Escrito por: Marcela Barralaga, Asociada

Ley para el Control y Regulación de Bebidas Energizantes en Honduras:

La Ley para el Control y Regulación de Bebidas Energizantes (Decreto 46-2024) tiene como objetivo principal proteger la salud de los consumidores, especialmente de los jóvenes, al establecer controles más estrictos sobre la venta y consumo de estas bebidas. La preocupación por los efectos adversos de las bebidas energizantes, como el aumento de la presión arterial, problemas cardíacos y adicción a la cafeína, llevó a la creación de este decreto que busca mitigar estos riesgos a través de regulaciones claras.

Una de las principales disposiciones de la ley es la prohibición de la venta de bebidas energizantes a menores de 18 años. Esto responde a estudios que han mostrado los peligros del consumo de altos niveles de cafeína y otros estimulantes en adolescentes, cuyo sistema nervioso es más vulnerable. Además, esta ley establece que las bebidas energizantes no podrán ser comercializadas en instituciones educativas o deportivas donde asisten menores, con el fin de reducir su acceso y prevenir problemas de salud debido a la gran demanda actual en estos centros.

El decreto también regula por medio de la Agencia de Regulación Sanitaria (ARSA) el etiquetado de las bebidas energizantes. Las empresas deben incluir advertencias visibles sobre los posibles riesgos para la salud, indicando de forma clara los efectos que el consumo excesivo puede tener en el organismo. Esto incluye advertencias sobre los niveles elevados de cafeína y otros ingredientes estimulantes, con el propósito de que los consumidores tomen decisiones informadas sobre su consumo.

Otro aspecto importante e innovador para Honduras de esta ley es la limitación de la publicidad de bebidas energizantes. El decreto prohíbe que estas bebidas se promocionen como productos saludables o que mejoren el rendimiento físico o mental, ya que estas afirmaciones suelen ser engañosas. Además, las campañas publicitarias no podrán estar dirigidas a menores de edad, y se restringirá el uso de figuras públicas que promuevan el consumo irresponsable de estos productos.

En resumen, la Ley para el Control y Regulación de Bebidas Energizantes (Decreto 46-2024) en Honduras representa un esfuerzo significativo para proteger la salud pública. Al regular el acceso, la publicidad y el etiquetado de estas bebidas, el gobierno hondureño busca reducir los riesgos asociados con su consumo y fomentar una mayor conciencia sobre sus posibles efectos negativos, especialmente entre los grupos más vulnerables, como los jóvenes.

Escrito por: Marcela Barralaga, Asociada

Ley para la Regularización de las Aportaciones y Cotizaciones del IHSS: Fortaleciendo la Seguridad Social en Honduras

La Ley para la Regularización de las Aportaciones y Cotizaciones del Instituto Hondureño de Seguridad Social (Decreto 48-2024) tiene como propósito central la mejora y sostenibilidad del sistema de seguridad social en Honduras. Ante los desafíos financieros y operativos que enfrenta el Instituto Hondureño de Seguridad Social (IHSS), este decreto busca garantizar que tanto empleadores como trabajadores cumplan con sus obligaciones de manera transparente y oportuna, asegurando la protección social de los ciudadanos.

Uno de los puntos clave de la ley es la regularización de las cotizaciones atrasadas. Se establece un mecanismo para que las empresas y los trabajadores puedan ponerse al día con sus aportaciones pendientes sin enfrentar sanciones severas, siempre y cuando se adhieran a los plazos establecidos para la regularización. Esta disposición ofrece incentivos para que los empleadores se pongan al día con sus pagos, lo que contribuye a estabilizar financieramente al IHSS.

Además, el Decreto 48-2024 establece medidas más estrictas para el control y la fiscalización de las aportaciones. El IHSS ahora tiene mayor autoridad para supervisar y auditar las contribuciones de los empleadores, con el objetivo de evitar la evasión de las obligaciones de seguridad social. Este control también incluye sanciones más severas para aquellos que no cumplan con la ley, lo que se espera que aumente la transparencia y garantice el acceso de los trabajadores a los beneficios del seguro social.

Otro aspecto importante de la ley es la ampliación de la base de cotizantes. Con el fin de asegurar la viabilidad a largo plazo del sistema de seguridad social, la ley busca incorporar a más trabajadores al IHSS, incluyendo a aquellos en sectores informales o independientes. Esto no solo permitirá que más personas accedan a beneficios como atención médica y pensiones, sino que también fortalecerá el financiamiento del sistema al aumentar el número de cotizantes.

En conclusión, la Ley es un paso crucial para fortalecer y modernizar el sistema de seguridad social en Honduras. Al mejorar la fiscalización, facilitar la regularización de aportaciones y expandir la cobertura, esta ley asegura que más hondureños puedan acceder a la protección que ofrece el IHSS, contribuyendo así al bienestar general, ofrecerle a la ciudadanía una mejor calidad en el servicio para el goce del derecho humano de la salud y contribuyendo a la estabilidad social del país.

Escrito por: Marcela Barralaga, Asociada

Reglamento para El Control Sanitario de Dispositivos Médicos

La Agencia de Regulación Sanitaria de Honduras (ARSA), siendo la autoridad encargada de la regulación, supervisión y control sanitario de productos de interés sanitario dentro de los cuales se incluye los Dispositivos Médicos, ha aprobado el “Reglamento Para El Control Sanitario De Dispositivos Médicos Y Otros Dispositivos De Interés Sanitario”, mediante acuerdo No. 0631-ARSA-2023, publicado en el diario oficial la Gaceta el pasado 21 de septiembre de 2024.

El reglamento es aplicable para todas las empresas y personas naturales que se dedican a las actividades de fabricación, repotenciación, reparación, acondicionamiento, importación, exportación, almacenamiento, transporte, distribución, alquiler, comodato, comercialización, investigación, publicidad, servicios de mantenimiento y/o cualquier otra actividad relacionada con los dispositivos médicos y otros dispositivos de interés sanitario, así como también a las actividades de tecnovigilancia desarrolladas por la Agencia de Regulación Sanitaria. La Coalición Interamericana de Convergencia Regulatoria define dispositivo medico como cualquier instrumento, aparato, implemento, maquina, implante, reactivo para uso in vitro, software, material u otro artículo similar o relacionado, destinado por el fabricante a ser utilizado, solo o en combinación, en seres humanos, para uno o varios fines médicos[1].

Los puntos principales de este reglamento son la autorización de fabricación, importación, exportación de dispositivos médicos, mecanismos de control, y responsabilidad de fabricante. Entre los mecanismos de control se incluyen Licencias Sanitarias, Clasificación de Dispositivos por Riesgo, Registro Sanitario, y Certificaciones de Buenas Prácticas en fin de afirmar la calidad y seguridad de los productos. Los fabricantes deben cumplir con estándares de calidad, seguridad y eficacia, en fin de mitigar riesgos y garantizando la buena función de los dispositivos.

Con este reglamento las autoridades tienen como principal objetivo asegurar la calidad, seguridad y eficacia establecidos por la Organización Mundial de la Salud (OMS). Así mismo, busca la mejora continua de las condiciones sanitarias y salud de la población hondureña, estableciendo las directrices, disposiciones y requisitos necesarios para obtener autorización de Exoneraciones, Informe por Riesgo, Registro Sanitario y Licencia Sanitaria en todas sus modalidades. Dichas autorizaciones son de carácter obligatorio para el desarrollo de actividades anteriormente citadas y su incumplimiento es motivo de sanciones por parte de la autoridad sanitaria.

[1] https://www.interamericancoalition-medtech.org/regulatory-convergence/wp-content/uploads/sites/4/2021/06/Def.Disp_.Med_.-ESPANOL-1.pdf

This newsletter provides a selection of regulatory news and comments from our SPANISH legal experts on interesting policy developments, recent case law, and new regulatory directions of major industry practices. The aim is to provide an up-to-date tool for quick and easy consultation on the most current and important topics at a SPANISH level.

What is the Golden Visa?The Golden Visa is a residence permit granted to non-EU citizens who make a real estate investment in Spain. This permit offers the opportunity to live and work in the country, providing a fast and efficient way to obtain legal residency.Benefits

It is the fastest method for obtaining residency. It greatly facilitates real estate investment and the ability to start businesses in Spain. With the Golden Visa, you can travel within the Schengen Area as easily as European Union citizens. The direct relatives of the Golden Visa holder can also obtain residency quickly.Requirements for obtaining itThe conditions for obtaining the Golden Visa vary depending on the type of investment made by the applicant.For real estate investments, it is granted to those who purchase property worth 500,000 or more euros.

For capital investments, a minimum of one million euros must be invested in investment funds, venture capital funds, bank deposits, or shares in a Spanish company. The Golden Visa will also be granted to those who undertake business projects that generate employment, have a significant socio-economic impact, or involve scientific advances.Lastly, those who invest more than two million euros in Spanish government bonds will also be eligible to apply for the Golden Visa.The acquisition processThe process for obtaining the Golden Visa is simple and easy to follow. and can be completed by following these steps:

All necessary documents, such as proof of investment, passport, and criminal record certificate, must be gathered. The application must be submitted to the apporpiate spanish agency. The Spanish authorities will review the provided documentation and, if the requirements are met, grant the Golden Visa.

When will the Golden Visa be eliminated?The Spanish government believes that foreign investment hinders residents’ access to housing. Therefore, in order to “guarantee the right to decent and affordable housing,” it plans to eliminate the Golden Visa. However, there is currently no set date for this proposal. For this reason, we suggest that those interested in acquiring residency proceed with the application process as soon as possible.

In Mercantile and Commercial Matters, the First Chamber of Mexico’s Supreme Court of Justice rules favourably of exceptionally lifting the “Corporate Veil” between partners and the Company, when it is being used with the purpose of defrauding third parties.

On September 13th of 2024, the First Chamber of Mexico’s Supreme Court of Justice resolved upon an “amparo” trial (a specific legal mechanism within Mexican legislation that seeks the protection of constitutional rights against governmental overreach and other judicially mandated violations), filed by a legal entity against the local judges order in interim injunctions, to freeze their bank accounts and suspend any payments they were due to receive. These actions on the local judges' part, were taken in lieu of a financial institution's request to have the legal separation between the company and its partners, including the one that filed for amparo, be disregarded, so that the same measures could be applied to them as well.

After the District Jury dismissed part of the appeal filed against the local judge’s decision, and denied constitutional protection to the other, the plaintiff filed for a revision of the resolution, a measure that was subsequently taken on by the Supreme Court for the case to be decided upon.

In its ruling, the Chamber reflected upon the notion of the “corporate veil”, given that one the fundamental principle of corporate law is the separation of assets that in turn infers the separation between a company’s assets and responsibilities regarding their partners. This separation becomes a sort of guarantee that the company / commercial entity provides to its members to assure them that they will not be responsible for paying the company´s dues with their own money. On the contrary, the very company will do so with its own goods and if it were unable to do so due to insolvency, that partners would only be responsible up until the amount of capital they had contributed.

Having considered the aforementioned, the Chamber conceded that, while denying the guarantee of the asset separation between partners and company was to dismiss the autonomous legal nature of the commercial entity, impacts the law and the States main tool to strengthen growth and development as fundamental pillars of an economy, it is possible, though exceptionally and upon the foundation of good faith, to lift said corporate veil upon abusive and fraudulent use in the eyes of the law. This in order to avoid exploitation of a commercial entity’s legal personhood to the end of eluding legal obligations, setting asset separation aside, in order to understand the company’s authentic corporate and economic identity and its objectives, whether general or particular.

The Court does clarify however, that, given that it is a restrictive measure that can jeopardise a guarantee set up to protect the entity, its partners and in some cases, other companies with whom it may form a corporate group, lifting the veil must be understood as an exceptional measure, one of restricted application and secondary use. That is to say, setting the corporate veil aside is a measure that must be applied with extreme discretion with enough justification to overrule the founding principles that rule over a company. Furthermore, the decision to lift the corporate veil must take subjective elements into account, specifically factual context that can give away if a company’s intention is to hide it´s defrauding of third parties behind the veil.

As such, the Court ruled that the general rule would stay as it was, the corporate veil cannot be lifted in a preliminary injunction proceeding, since this shall only be an exceptional measure there must be reliable evidence (including factual context) of the need to disregard fundamental principles safeguarding the legal personhood of the company.

Imminent Labor Reform in Mexico

At the beginning of the year, Mexican president Andrés Manuel López Obrador proposed a series of legislative reforms, just months away from the end of his six-year term as head of the executive branch of government in Mexico. In total, 20 initiatives were presented, while 18 are constitutional and 2 secondary, their nature has been widely debated both on the national, as well as international stage. While certain aspects of the reforms remain under heavy scrutiny, other elements of the change have passed relatively unnoticed by comparison. Such are the constitutional reforms pertaining to the rights of indigenous and Afro-Americans communities, welfare, universal health care, prohibition of toxic substances found in vapes and unauthorized synthetic drugs, amongst others.

One aspect of this package that has captured the people’s attention is undoubtedly the reforms relating to labor and workers’ rights. As such the reforms seek to modify articles of the Federal Labor Law (Ley Federal del Trabajo) as follows: a) Reduce hours within the working week, taking day shifts from 48 to 40 hours a week and likewise night shifts from 42 hours to 35 hours a week; b) increase bonuses to be calculated upon 30 days instead of 15; c) prohibit practices that force workers to stay on their feet throughout their entire shifts by implementing mandated resting periods; d) increase seniority bonus from 12 to 15 days of salary per year of employment and lower the minimum eligibility period for said bonus upon termination of the work relationship from 15 to 13 years; e) create a housing system for workers through the Worker’s Housing Institute (Infonavit) so that said body can directly build real estate and place it at the disposal of its beneficiaries; f) increase paternity leave from 5 to 20 days of paid working days for workers who have recently had or adopted a child.

There are multiple additions to the catalog of benefits available for Mexican workers with formal employment. These measures are aimed at all workers, both those who work in office or in person in general, as well as workers who operate through telecommuting. For example, when workers carry out around 40 percent of their work remotely then the company is required to grant a monthly payment to each employee in the “home-office” modality to cover their internet service expenses and the proportional part of the electricity consumption. Similarly, companies must guarantee that said workers enjoy the same rights as if they were working in an office, such as breaks for breastfeeding or the right to disconnect once they have finished their workday.

Legislation surrounding occupational diseases also saw significant changes, as 88 new afflictions were included. This catalog allows physicians to diagnose work-related ailments in order to extend incapacities. This reform marks the first time in five decades that the list is updated and stands out for recognizing for the first time mental disorders (such as stress, anxiety, depression and insomnia), incorporating women's diseases such as endometriosis or infertility, increasing from four to 30 the types of cancer recognized as occupational risk, and increasing infectious and parasitic diseases, among which the inclusion of Covid-19 is noted.

As it stands, we are yet to see the full effects these reforms will have throughout the country. Nonetheless, the legal community remains steadfast in their endeavor to understand and shape the future of our constitutional framework as it develops and is actualized before our eyes.

The Importance of Corporate Governance for Business Longevity in Mexico

Recent data from Mexico’s National Institute of Statistics and Geography (INEGI) highlights that the country is home to 5.54 million businesses, with 98.7% classified as micro, small, and medium-sized enterprises (MSMEs). This represents a significant 28% growth since 2010 when 4.33 million businesses were recorded.

Despite this growth, challenges persist. INEGI reports that almost 52 out of every 100 businesses in Mexico shut down within their first two years of operation. In light of these figures, ensuring long-term viability is a major concern for most companies. Key to overcoming these obstacles is the implementation of effective Corporate Governance practices, particularly when it comes to managing internal relationships among stakeholders, family members, and employees.

A study by the CIFEM|BBVA Family Business Research Center at IPADE Business School, titled “Progress Levels of Family Businesses in Achieving Continuity and Harmony,” reveals that generational succession remains one of the toughest issues facing family-owned businesses. According to the research, half of these companies are at risk of instability because they lack clear succession plans. An additional 45% still have unresolved succession-related challenges, while only 5% of businesses surveyed in 2022 had an explicit strategy for transitioning leadership.

The introduction of Corporate Governance structures could help prevent companies from failing due to unclear responsibilities or succession processes. Setting well-defined rules and roles for everyone involved in the business is critical, especially for MSMEs aiming to thrive in the long run. Such governance strategies allow companies to separate family interests from business operations, which is essential for their continued success across generations.

Experts recommend several steps for implementing effective Corporate Governance. One of the top priorities is developing a robust succession plan that addresses future leadership transitions for second and third generations. This process should ideally be supported by external consultants who can help establish clear rules defining relationships between the company, its employees, and the family owners.

Establishing a Board of Directors and institutionalizing processes that align with governance principles—whether related to profitability, investment, diversification, or innovation—are also key strategies for strengthening Corporate Governance.

The benefits of such governance are wide-ranging. By creating structured decision-making bodies, companies can clearly define the roles and responsibilities of employees with measurable goals tailored to each individual’s performance. Furthermore, Corporate Governance promotes transparency, ensures better management of finances, and documents processes to create a well-defined organizational structure. Importantly, this approach fosters data-driven decision-making, reducing the influence of emotions on critical business choices.

Incorporating these measures will help prevent internal conflicts and encourage decisions that benefit the business as a whole rather than advancing individual interests.

Ultimately, implementing effective Corporate Governance plays a vital role in a company’s growth and continuity. It safeguards the interests of shareholders, ensures transparency in operations, and facilitates communication between family members, employees, and the company itself, making it an indispensable tool for long-term success.

RULES RELATING TO THE REGISTRATION OF FOREIGN REINSURANCE COMPANIES IN VENEZUELA

The Superintendence of the Insurance Activity (Superintendencia de la Actividad Aseguradora - SUDEASEG) established the guidelines for registration with the registry of foreign reinsurance companies seeking to operate in Venezuela. These rules, published in Official Gazette No. 6.835 Extraordinary of September 3, 2024 and effective as from the same date, describe the necessary steps and documentation required for their compliance. 

From now on, requests for registration with said registry must be made through the SUDEASEG’s online system Sistema Único de Trámites. Exceptions for physical submissions will only be allowed under justified circumstances.

The information that foreign companies must file for the aforesaid registration include:

Key information, such as their name, corporate domicile, address, contact details, and a notarial authenticated power of attorney for their representative. A certificate of the competent authority of the country of their domicile evidencing that the reinsurance company is legally organized in said country and that it has an authorization issued at least five years before to carry out reinsurance and/or refinancing operations abroad,  indicating the lines of business in which it may operate and that it has no impediments to payment of reinsurance technical accounts in freely convertible currencies Report and financial statements of the last three years, together with audit reports from recognized firms. A minimum equity of USD 10 million is required. Documents evidencing that the company is organized and registered in countries, dominions, jurisdictions, territories, or associate, cooperative states in the frame of the global fight against the crimes of risk management of Money Laundering, Terrorism Financing, and Financing of Proliferation of Weapons of Mass Destruction and other unlawful acts, as per the guidelines issued by the Financial Action Task Force (FATF). International credit ratings prepared by the providers of credit ratings mentioned in the Rules.

For purposes of the registration with the registry of foreign reinsurance companies, the Lloyd’s of London insurance and reinsurance market will be considered as a single reinsurer. Lloyd’s of London must send SUDEASEG a list of the syndicates that are members of Lloyd’s.

The SUDEASEG will be allowed a period of twenty (20) business days in order to answer the request for registration. The right to correct information or documentation is provided.

The registration must be renewed every three (3) years and the information presented in the request for registration must be updated. Any change in the information provided for registration or renewal must be sent to the SUDEASEG in a period of thirty (30) business days as from the time when such change occurs.

All documents filed in a language other than the Spanish language must be translated by a public interpreter. The powers of attorney and the certifications must have been issued no longer than six (6) months before the date when the request is filed and they must be legalized or apostilled, as appropriate.

The rules became effective upon publication in the Official Gazette.

The Corporate Transparency Act (the "CTA") took effect January 1, 2024.

Executive Summary The CTA requires every reporting company that is not exempt to file a beneficial ownership report (a "Report") with FinCEN – the Financial Crimes Enforcement Network of the U.S. Treasury. The Report must include five discrete items of information for each Beneficial Owner of your Company. We may require to collect from you documents and information needed to help determine whether your company needs to file a FinCEN Report and, if so, who are the Beneficial Owners to be identified in that report. You will then be responsible for preparing your Report and filing it with FinCEN by the applicable deadline. The CTA imposes a $500 per day fine on reporting companies that fail to file on time. In addition, a willful failure to file can be punished as a felony. If you have any questions, please contact one of our attorneys. Background and Resources Because the CTA is a new law that will require more than 30 million U.S. businesses to file a Report that they have never filed before, there is a great deal of concern is the market. The CTA applies to any corporation, LLC or other legal entity formed by the filing of a document with a Secretary of State (or any entity formed outside the U.S. that is registered to do business in the U.S. by filing a document with a Secretary of State) (each, a "reporting company"). Some reporting companies are exempt from the CTA's requirements and the resources cited below can help you determine if your company may be exempt. The CTA will require every non-exempt reporting company in existence prior to January 1, 2024, to file its initial Report with FinCEN by January 1, 2025. Any company formed on or after January 1, 2024 (and before January 1, 2025), will need to file its first report within 90 calendar days after the date of formation (or the date of registration, in the case of a foreign reporting company). Every non-exempt reporting company will need to identify its beneficial owners and, for each of them, provide their (a) full legal name, (b) residential address, (c) date of birth, (d) a "unique identifying number" (which can be a driver's license or passport) and (e) an image of the document that provides the unique identifying number. Entities formed (or registered to do business in the U.S.) on or after January 1, 2024, will also need to provide this same information for the entity's "company applicant." Importantly, after a reporting company files its initial Report, the reporting company will need to amend that Report within 30 calendar days after any change in its beneficial owners or their reported information. As a result, every reporting company should review its constituent documents and adopt a compliance policy to ensure that the company is able to comply with this requirement. A great source of background information is the Small Entity Compliance Guide (available online) published by FinCEN to educate the market. Assistance in Preparing Your Report Under the CTA.

Grimaldi Alliance continues its growth in the USA and New York with the addition of Melchionna PLLC, founded by Luca Melchionna, who has over twenty-five years of experience, brings a highly experienced multidisciplinary team with a focus on corporate legal advisory, cross-border transaction, corporate governance, and international tax matters.

This expansion is part of Grimaldi Alliance's strategy to strengthen its presence in the United States, assisting key clients closely and supporting them in their growth and internationalization efforts.

Luca Melchionna is a highly respected professional in the legal market, specializing in transactional law with a focus on compliance, M&A, and tax law. For many years, he has assisted multinational corporations and institutional investors in corporate, commercial, and tax matters. His team has solid expertise in supporting buyers and investors in establishing and acquiring companies in the U.S., managing local assets efficiently, and handling international commercial transactions.

"I have known and appreciated Luca Melchionna for years. He is a reference figure for many stakeholders in the New York legal market, and his firm represents excellence in quality. We are proud to welcome him as a partner in Grimaldi Alliance, strengthening our presence in New York. This step is another key part of our growth strategy in the United States, a crucial market for our international clients," said Francesco Sciaudone, Managing Partner of Grimaldi Alliance.

Banking and Finance

The Venezuelan Central Bank (VCB) established the interest rates applicable to obligations derived from employmentrelationships (59.26% and 47.63% - August 2024) and to transactions with credit cards (60.00% annual maximum lending rate and 17.00% annual minimum lending rate - September 2024). (Official Gazette of 09/16/2024. Official Notice. Entry into force: Upon publication in the Official Gazette).

Tax

The National Integrated Service of Customs and Tax Administration (Servicio Nacional Integrado de Administración Aduanera y Tributaria - SENIAT) established the rate applicable to the calculation of late payment interest accrued during July 2024. It was established that the weighted average interest rates for loans of the six (6) principal commercial and universal banks of the country with the highest volume of deposits, excluding portfolios with prime rates, set by the Venezuelan Central Bank (VCB) for July 2024 is of 59.20%, which rate is to be increased 1.2 times for the calculation of late payment interest accrued during said month. (Official Gazette of 09/17/2024. Administrative Ruling SNAT/2024/000090).

Insurance and Reinsurance

The Superintendence of the Insurance Activity (Superintendencia de la Actividad Aseguradora - SUDEASEG) issued the Prudential Rules of the Insurance Activity. (Official Gazette No. 6.835 Extraordinary of 09/03/2024. Administrative Rulings from No. SAA-01-0478-2024 to No. SAA-01-0512-2024 and from No. SAA-01-0516-2024 to No. SAA-01-0537-2024. Entry into force: Upon publication in the Official Gazette). The SUDEASEG, through Administrative Rulings, annulled: (i) the regulation of the group life insurance approved by Ruling No. F55-2-0041 del 01/24/2000, published inOfficial Gazette No. 5.441 Extraordinary of 02/21/2000; (ii) the general conditions, particular conditions, riders, request for insurance and loss report of the land transport insurance policy approved by Ruling No. 003947 of 11/25/2009, published in Official Gazette of 12/21/2009; and (iii) the general conditions and particular conditions of the land vehicle hull insurance policy approved by Ruling No. FSAA-9-00094 of 01/12/2017, published in Official Gazette of 04/24/2017. (Official Gazette No. 6.835 Extraordinary of 09/03/2024. Administrative Rulings Nos. SAA-01-0513-2024, SAA-01-0514-2024, and SAA-01/0515/2024. Entry into force: Upon publication in the Official Gazette).

Miscellaneous

The Presidency of the Republic issued the Decree of Removal and Liquidation of the National Center of Foreign Trade (Centro Nacional de Comercio Exterior - CENCOEX). (Official Gazette No. 6.843 Extraordinary of 09/19/2024. Decree No. 5.006. Entry into force: Upon publication in the Official Gazette). A Presidential Decree authorized the creation of a State-owned company under the form of a sociedad anónima, called “Agencia de Promoción de Exportaciones, S.A.”, assigned to the Ministry of the Popular Power for Economy, Finance, and Foreign Trade. Thepurpose of said company will be to promote exports and to further positioning of non-oil goods and services for international markets. (Official Gazette No. 6.843 Extraordinary of 09/19/2024. Decree No. 5.007. Entry into force: Upon publication in the Official Gazette). A Presidential Decree established the General Staff of Non-oil Exports, subordinate to the President of the Republic, which will help in the making of strategic decisions in relation to non-oil export matters. (Official Gazette No. 6.843 Extraordinary of 09/19/2024. Decree No. 5.008. Entry into force: Upon publication in the Official Gazette).

Rules for registration of foreign reinsurance companies in Venezuela

The Superintendence of the Insurance Activity (Superintendencia de la Actividad Aseguradora - SUDEASEG) established the guidelines for registration with the registry of foreign reinsurance companies seeking to operate in Venezuela. These rules, published in Official Gazette No. 6.835 Extraordinary of September 3, 2024 and effective as from the same date, describe the necessary steps and documentation required for their compliance. 

From now on, requests for registration with said registry must be made through the SUDEASEG’s online system Sistema Único de Trámites. Exceptions for physical submissions will only be allowed under justified circumstances.

The information that foreign companies must file for the aforesaid registration include:

Key information, such as their name, corporate domicile, address, contact details, and an authenticated power of attorney for their representative. A certificate of the competent authority of the country of their domicile evidencing that the reinsurance company is legally organized in said country  and that it has an authorization issued at least five years before to carry out reinsurance and/or refinancing operations abroad,  indicating the lines of business in which it may operate  and that it has no impediments to payment of reinsurance technical accounts in freely convertible currencies Report and financial statements of the last three years, together with audit reports from recognized firms. A minimum equity of USD 10 million is required. Documents evidencing that the company is organized and registered in countries, dominions, jurisdictions, territories, or associate, cooperative states in the frame of the global fight against the crimes of risk management of Money Laundering, Terrorism Financing, and Financing of Proliferation of Weapons of Mass Destruction and other unlawful acts, as per the guidelines issued by the Financial Action Task Force (FATF). International credit ratings prepared by the providers of credit ratings mentioned in the Rules.

For purposes of the registration with the registry of foreign reinsurance companies, the Lloyd’s of London insurance and reinsurance market will be considered as a single reinsurer. Lloyd’s of London must send SUDEASEG a list of the syndicates that are members of Lloyd’s.

The SUDEASEG will be allowed a period of twenty (20) business days in order to answer the request for registration. The right to correct information or documentation is provided.

The registration must be renewed every three (3) years and the information presented in the request for registration must be updated. Any change in the information provided for registration or renewal must be sent to the SUDEASEG in a period of thirty (30) business days as from the time when such change occurs.

All documents filed in a language other than the Spanish language must be translated by a public interpreter. The powers of attorney and the certifications must have been issued no longer than six (6) months before the date of the request and they must be legalized or apostilled, as appropriate.

Latin America Day 2024 - 2nd edition, 24 October 2024, Milan

The unique event in Italy dedicated to promoting economic and business relations between Italy and Latin America.

Latin America Day has an impact that reaches beyond borders, and its presence in the media is testimony to its global relevance. Across a variety of communication platforms, the event captured the attention and interest of diverse audiences around the world.

The objective of the Latin America Day event is to increase knowledge and understanding of the economic challenges and opportunities of the Latin American region and to establish international contacts.

Our Partner Stefano Bianchi will participate in the event as a speaker.

Register at the following link: https://lnkd.in/dkBBPvaP

Grimaldi Alliance welcomes you!

We are proud to welcome you to our Law Firm, where excellence and dedication are at the heart of everything we offer.

International cohesion is a core value for our law firm, as it promotes the sharing of knowledge and resources across offices, improving efficiency and innovation. It also increases the ability to respond to clients' global needs, providing comprehensive and coordinated legal support.

We are ready to support you in every legal aspect and make you feel part of our team. Thank you for choosing the Grimaldi Alliance!

A special mention, for our Partners who decided to participate for the production of this video:

João Valadas Coriel - Valadas Coriel & Associados Dorant Ekmekçiu - Hoxha, Memi & Hoxha Alexander Todorov - Dimitrov, Petrov & Co Satinder Kapur - Satinder Kapur & Associates Josè Maria Allonca - Allonca Abogados Laurenz W. Vuchetich - BDV Legal Mauricio Villeda Jr. - Gufa Law Andrej Kirm - Kirm Perpar Juan Carlos Moncada - Moncada Abogados Diego Martín Francesconi & Javier Herraiz - Castellana 170 Abogados Zsofia Bitai - Bitai & Partners

Tax Compliance Costs for Businesses in the USA 

Tax compliance costs represent a significant challenge for businesses in the USA. This reality impacts both profitability and growth capacity. In this article, we will explore the main aspects of compliance costs and their implications for the business sector. 

What are Tax Compliance Costs? 

Tax compliance costs include all expenses related to fulfilling tax obligations. This covers expenses for accounting, consulting, and software. Additionally, the time invested by employees to handle tax matters is an aspect to be analyzed. 

Financial Impact on Businesses 

According to the Tax Foundation, small and medium-sized businesses face the greatest challenges. Compliance costs can consume up to 60% of the time dedicated to financial management. This reduces the resources available for investments and innovations. For many businesses, this results in less growth and competitiveness in the market. 

The Need for Reform 

The complexity of the tax system is one of the main reasons for the high costs. A reform can simplify tax obligations by modernizing the current system. Automating tax tasks can reduce costs and increase efficiency. 

How to Manage Compliance Costs? 

Automation: Use tax management software. They help reduce errors and save time.  Training: Invest in training for your team. Well-trained employees manage tax obligations more effectively.  Consulting: Consider hiring specialists. Tax consultants can provide valuable insights. 

Tax compliance costs for businesses in the USA are high and increasing. However, tax system reform and the adoption of technology can provide some relief in costs. Efficient tax compliance management can lead to a healthier and more competitive business environment. 

On 17 August 2024, Assembly of the Republic of Montenegro adopted the Law on the Use of Energy from Renewable Sources, which was published in the Official Gazette of Montenegro, issue no. 082/24 (hereinafter: the “Law”).The first law of its kind enacted in Montenegro establishes a solid foundation for encouraging investment in renewable energy sources, with an emphasis on reducing carbon dioxide emissions and increasing the production of energy from clean and sustainable sources.What should be emphasized from the outset is that this Law fully implements EU Directive 2018/2001 on the promotion of the use of energy from renewable sources, thereby achieving complete alignment with these regulations.The Law establishes a comprehensive framework for promoting and regulating renewable energy. It defines the share of renewable energy, offers incentives for production, and outlines the process for obtaining preferential status as a producer. It also mandates issuing guarantees of origin for renewable energy, specifies the roles of buyers, producers, and renewable energy communities, and sets conditions for integrating renewable energy into heating, cooling, and transportation sectors. Additionally, it includes criteria for sustainability and emissions reduction, fosters regional cooperation, and addresses other important aspects of renewable energy utilization.Under the Law, renewable energy sources include non-fossil sources such as wind energy, solar energy (both solar thermal and photovoltaic), geothermal energy, ambient energy, tidal energy, wave energy and other marine energy, hydropower, biomass, landfill gas, gas from wastewater treatment plants, and biogas.

Maddalena Boffoli is LAWYER OF THE YEAR for Public Employment SectorOur partner Maddalena Boffoli has won the award of Lawyer of the Year - Public Employment Sector at Legalcommunity Labour Awards.She won this award for developing a remarkable expertise in advising the public sector, with entities, public administrations and public companies followed in all legal matters.Maddalena chose to extend this success to her entire team, taking them with her on stage: a demonstration of how every success in Grimaldi Alliance, is always seen as the achievement, gained by teamwork.

Banking & Finance

The Venezuelan Central Bank (VCB) established the interest rates applicable to the obligations derived from employment relationships (59.20% and 47.60% - May and July 2024) and to transactions with credit cards (60.00% annual maximum lending rate and 17.00% annual minimum lending rate - June and August 2024). (Official Gazette of 08/16/2024. Official Notice. Entry into force: Upon publication in the Official Gazette).

Tax

A Presidential Decree exempted the net taxable income of territorial source obtained by Cooperative Associations organized under the Decree with the Force of Special Law of Cooperative Associations from payment of income tax. The benefit of exemption will have a duration of one (1) year as from the date of publication of said Decree in Official Gazette and it may be extended for one (1) year. The exemption will be applied to the fiscal years in progress when the Decree becomes effective. (Official Gazette of 08/12/2024. Decree No. 4.976. Entry into force: Upon publication in the Official Gazette).

The National Integrated Service of Customs and Tax Administration (Servicio Nacional Integrado de Administración Aduanera y Tributaria - SENIAT) established the rate applicable to the calculation of late payment interest accrued during March, April, May, and June 2024. It was established that the weighted average interest rate for loans of the six (6) principal commercial and universal banks of the country with the highest volume of deposits, excluding portfolios with prime rates, set by the Venezuelan Central Bank (VCB) for March, April, May, and June are: 58.98%, 58.98%, 59.20%, and 59.25% respectively, which rates are to be increased 1.2 times for the calculation of late payment interest accrued during said months (Official Gazette of 08/21/2024. Administrative Rulings Nos. SNAT/2024/000068, SNAT/2021/000076, SNAT/2021/000077, SNAT/2022/000081).

The SENIAT legalized the issue and circulation of liquor warranty seals. (Official Gazette of 08/21/2024. Administrative Ruling No. SNAT/2024/000082. Entry into force: Upon publication in the Official Gazette).

A Presidential Decree extended until 12/31/2024 the effectiveness of Decree No. 4.907, published in Official Gazette No. 6.784 Extraordinary of 12/29/2023 and extended by Decree No. 4.967, published in Official Gazette No. 6.818 Extraordinary of 06/28/2024, which Decree No. 4.907 establishes the exemptions from import duties and value added tax for the importation of goods indicated in Chapter II of said Decree.

Therefore, the exemptions or benefits indicated in Decree No. 4.907 continue to be in effect, in the terms and conditions that said Decree establishes. (Official Gazette of 08/30/2024. Decree No. 4.985. Entry into force. As from 09/01/2024).

Miscellaneous

The Ministries of the Popular Power for Economy, Finance, and Foreign Trade and for Transportation established, through a Joint Resolution, the regulation of the “Exporta Fácil Postal” service, which consists in an exportation service via mail, by means of the operating platform of the Instituto Postal Telegráfico de Venezuela (IPOSTEL) (Postal Telegraph Institute) or another authorized postal operator. The purpose of said Resolution is to establish the procedures for exportation of the products of startup entrepreneurs, micro, small and mediumsized entrepreneurs and artisans of the country, in order to achieve a fast process for the exit of the goods via mail. (Official Gazette of 08/15/2024. Resolution No. 005- 2024 and Resolution No. 034. Entry into force: Upon publication in the OfficialGazette).

A Presidential Decree: 1. Ordered the elimination of the Ministry of the Popular Power for Youth and Sports and created the Ministry of the Popular Power for Youth and the Ministry of the Popular Power for Sports; 2. Ordered the elimination of the Ministry of the Popular Power for Urban Agriculture, the competence of which will be transferred to the Ministry of the Popular Power for Communes and Social Movements, which will now be called Ministry of the Popular Power for Communes, Social Movements, and Urban Agriculture (Official Gazette No. 6.830 Extraordinary of 08/27/2024. Decree No. 4.980. Entry into force: Upon publication in the Official Gazette).

A Presidential Decree assigned the National Institute for Socialist Training and Education (Instituto Nacional de Capacitación y Educación Socialista - INCES) to the Ministry of the Popular Power for the Social Process of Work. (Official Gazette of 08/28/2024. Decree No. 4.983. Entry into force: As from the date of its publication in the Official Gazette).

Strategies for reducing taxes: adapting to the new rules of the Tax Reform in Brazil

In this article, we explore effective strategies for reducing taxes and ensuring compliance with the new rules of the Tax Reform in Brazil. Tax planning is a recurring topic on business and family agendas, especially with the imminent tax reform in Brazil. The new regulations will significantly impact the incidence of taxes on inheritances, donations and private pension plans.

What will change in inheritances with the new rules of the Tax Reform?

The main topic is the changes to the Causa Mortis and Donation Transfer Tax (ITCMD). Currently, each Brazilian state sets its own rate, which can be fixed or progressive, with a ceiling of 8%. With the reform, the ITCMD will become progressive, increasing according to the value of the estate.

In addition, the ITCMD will also be applied to open-ended private pension plans, including Free Benefit Generator Plans (PGBL) and Free Benefit Generator Life (VGBL). Amounts invested more than five years ago in the VGBL will not be taxed in the event of death.

Another significant change is the inclusion of ITCMD on inheritances and donations of assets abroad, a tax that until now did not exist for beneficiaries domiciled in Brazil. The Treasury estimates that the ITCMD represents 0.4% of the national tax burden, in line with the average for OECD countries.

Strategies to Minimize the Impacts of Tax Reform Creating Family Holdings: One of the main strategies is to structure family holdings. For those who own a lot of real estate, for example, it is possible to set up a real estate holding company, transferring the real estate to the company and leaving the holding shares to the heirs. Allocating resources abroad: For larger assets, allocating part of the resources abroad can be an alternative. This practice, if done legally and with income tax declared, helps to mitigate the “Brazil risk”. Lifetime Gifting: Anticipating the transfer of assets while you are still alive is another strategy. With the tax reform, donating real estate and other assets before the new rules come into force can minimize future tax impacts. Specialist advice: It is essential to rely on the advice of professionals who specialize in tax and succession planning.

The changes brought about by the tax reform require a careful review of estate planning. Anticipating and properly structuring the succession of assets can lead to significant tax savings and guarantee financial security for generations to come.

Recent developments in the legal arena in India

A Newsletter by SKAA Advocates and Solicitors, India

I. Criminal LawsNew Indian Criminal Laws- The Indian Penal Code, 1860, Criminal Procedure Code, 1973 and the Indian Evidence Act, 1872 have been replaced by the Bharatiya Nyaya Sanhita (BNS), Bharatiya Nagarik Suraksha Sanhita (BNSS), and Bharatiya Sakshya Adhiniyam (BSA) w.e.f 1st July 2024. These New Criminal Laws apply prospectively and aim to re-vamp the Indian criminal justice paradigm by consolidating the traditional provisions and making them more relevant, reformative, contemporary, and concise.

Some key highlights and their impact1. New dedicated provisions and penalties for offenses such as organized crime, hacking, identity theft, and online harassment, strict timelines for investigations and trials, introduction of community service as a punishment etc.2. Integration of Technology in legal procedures- Service of summons, warrants in digital form by Courts, recording of evidences electronically as a mandatory requirement.3. Statutory recognition of Zero FIR and e-FIR- an FIR can now be registered at any police station irrespective of the location of crime. This eliminates jurisdictional hurdles. An FIR can also be lodged through electronic means, thereby facilitating easy access.4. Expansive reach- Section 48 of BNS stipulates that abetting a criminal act occurring within India from beyond India, will constitute an offence. The implication of this provision may potentially result in roping in foreign entities/nationals alleged to have had far-off/questionable involvement to crimes committed within India through advice, resources, encouragement etc.5. Attachment of property for a wider net of offenses- Section 107 of BNSS empowers Indian authorities to issue orders, including ex-parte orders, for attachment of properties derived from commission of any offense under the BNS.

II. Data Protection laws

The Digital Personal Data Protection Act, 2023 (“DPDPA”) received the President of India’s assent on 11th August, 2023, although the effective date is yet to be notified soon. Presently, the Government is in the process of framing major rules under the DPDPA, which are likely to be published soon.This legislation is slated to replace certain provisions of the existing Information Technology Act, 2000 and the entire Information Technology (Reasonable Security Practices and Procedures and Sensitive Personal Data or Information) Rules, 2011.The DPDPA is triggered when digital personal data is processed within India OR outside India where data is processed for any activity is connection with offering goods/services to subjects within India.The DPDPA broadly follows a similar model and has some analogous principles as that of the UK’s General Data Protection Regulations (‘GDPR’).It encapsulates provisions governing Data Fiduciaries and Data Principals (equivalent to Data Controller and Data Subject as per the GDPR respectively), such as ‘legitimate uses’ for processing personal data, consent, rights of data principles, cross border data transfers (with exceptions), etc which have similar features as that of GDPR. However, without the procedural guidance of Rules under the Act, there are some significant gaps as to the steps required to be compliant under this Act.The penalties for non-compliance under the DPDPA currently range from INR 500 million to INR 2.5 billion.III. Foreign Exchange Management Law

A. International Trade Settlements in INRThe settlement for export and import of goods in INR was primarily introduced by the RBI in July 2022 as a measure to promote internationalization of the Indian currency and bilateral global trade, with an emphasis on trade from India.Under this mechanism, trade settlements take place through Special Rupee Vostro Accounts (SRVAs) opened by correspondent banks of the partner trading country, in India.This arrangement also inter alia permits Indian exporters to receive advance payment in INR and ‘set-off’ of export receivables against import payables in respect of the same overseas buyer and supplier (subject to RBI conditions).Since its introduction, the significance of this mechanism has only gained more attention, with India completing its first ever import payment, for crude oil purchased from the UAE, in INR. In March 2024, RBI signed a Memorandum of Understanding (MoU) with the Bank of Indonesia for instituting a framework to promote the use of local currencies i.e., Indian Rupees (INR) and the Indonesian Rupiah (IDR) for cross-border transactions.As on date, RBI has allowed 22 countries to open SRVAs with Authorised Dealer- Category-1 Banks in India, including Belarus, Bangladesh, Fiji, Germany, Israel, Malaysia, Maldives, Mauritius, Oman, Russia, Seychelles, Singapore, Sri Lanka.

B. Amendments to Foreign Exchange Management Rules

Key amendments to the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 (‘NDI Rules’)- notified on 16th August 2024Easing of FDI-ODI swaps- Previously, a Foreign Resident (FR) was eligible to acquire equity instruments of an Indian company by way of a swap of equity instruments of another Indian company only. This meant that swapping Indian securities with foreign securities required RBI approval.Vide the amendment, it is now permitted to swap for equity capital of a foreign entity subject to compliance with the Foreign Exchange Management (Overseas Investment) Rules 2022 (‘OI Rules’) and regulations specified by RBI.The term "equity capital" under the OI Rules has a broader definition. It includes perpetual capital, or fully convertible instruments of a foreign entity (including LLCs, LLPs, investment funds, etc.).As a result, this change provides flexible structuring options by facilitating global expansion opportunities to both Indian companies and foreign entities wishing to relocate their structures between India and abroad.Nevertheless, considerations around eligibility limits etc., for overseas investments would continue to apply notwithstanding this relaxation.Relaxation of norms for Foreign Portfolio Investors - As per the erstwhile position, Foreign Portfolio investment (FPI) in an Indian Entity under the FDI route was capped at the lower of - 49% of the paid-up capital of an Indian entity OR the sectoral/statutory cap.Vide the amendment, the said 49% cap has been removed. Now, aggregate FPI in an Indian entity can extend up to the sectoral/statutory cap without needing government approval or sectoral compliance, provided that it does not lead to transfer of ownership and/or control to a person resident outside India. Other investments by a FR, however, shall remain subject to Government approval and compliance of sectoral conditions.Foreign investment up to 100% under automatic route in white label ATM operations- The Amendment aligns the NDI Rules to the Consolidated FDI Policy of 2020, which permits foreign investment in white label ATM operations (essentially ATMs of non-bank entities) up to 100% subject to adherence of criteria outlined in the NDI rules. Authorized Dealer Banks can allow Non- Residents to maintain interest-bearing accountsOn 6th May, 2024, the amendments issued by RBI in the Foreign Exchange Management (Deposit) Regulations, 2016 came into force. As per these amendments, Indian Authorized Dealer Banks (ADs) shall be permitted to allow non-residents to maintain interest-bearing accounts in INR or foreign currencies for posting/collecting margin in India for a valid derivative contract as outlined in the Foreign Exchange Management (Margin for Derivative Contracts) Regulations, 2020. Direct listing on international exchangesAmendments to the NDI rules and introduction of Companies (Listing of equity shares in permissible jurisdictions) Rules, 2024 (“LEAP Rules”) together provide a legal framework for Indian public companies to issue and list their shares in permitted international stock exchanges, which are, presently, the India International Exchange and the NSE International Exchange. Scheme for trading and settlement of Sovereign Green Bonds (SGBs) within India’s International Financial Services Centre (IFSC)With a view to facilitate wider non-resident participation in such instruments, the RBI has, w.e.f 29th August 2024, introduced a Scheme to permit foreign investors to invest in SGBs. Apart from persons residing outside India, International Banking Units (IBUs) of foreign banks are also eligible participants under this Scheme.The Scheme allows investors to engage in primary auctions and secondary market transactions, following the RBI’s guidelines. Investors can place competitive bids in primary auctions through authorized clearing corporations, which will act as aggregators. The settlement of such securities will be subject to the RBI's prescribed processes to ensure transparency.

IV. Taxation lawsThe Union Budget for 2024-25 introduced on 23rd July 2024 by the Finance Minister of India. The Budget places strong emphasis on job creation, skilling for youth, women empowerment and ease of doing business.On the taxation front, some of the key highlights include-

Abolition of Angel Tax – An Indian company issuing shares (with subscription price in excess of prescribed value) was liable to pay such tax - deterring their fund-raising capability. The Budget seeks to abolish Angel Tax for all classes of investors. Reduction in corporate tax rate for foreign companies- the corporate tax rate is reduced from the existing 40% to 35% to encourage investment. Abolition of Equalization Levy (EL)- Currently, a non-resident e-commerce operator is subjected to EL @ 2% from e-commerce services/supply. The Budget proposes to abolish the EL of 2% in such cases, with effect from 1st August, 2024. Buy-back of shares to be treated as Dividend- W.e.f 1st October 2024, the Budget proposes to treat buy-back of shares as ‘dividend’ income- taxable at the hands of the shareholders. The Indian company to apply ‘witholding tax’ at applicable rates/beneficial treaty rate in case of non-residents.

V. Bar Council of India proposes to amend rules for foreign lawyers/ firms to practice on Indian soilThe Bar Council of India (BCI) has announced plans to notify amended regulations governing the entry of U.K. lawyers and law firms into the Indian legal market. This move is in pursuance to ongoing dialogue regarding some key issues in the BCI’s Rules for ‘Registration and Regulation of Foreign Lawyers and Foreign Law Firms in India’ notified last year. These rules were introduced with an aim to establish a reciprocal relationship between Indian and foreign legal professionals.In its statement, the BCI had announced that they have participated in discussions regarding a joint Memorandum of Understanding with the Law Society of England and Wales & Bar Council of England and Wales and that amended regulations are expected to be notified soon.

The Investment-Development Bank of the Republic of Srpska, in cooperation with the Government of the Republic of Srpska and with the support of the President of the Republic of Srpska, Mr. Milorad Dodik, will be hosting a two-day investment event titled “Invest Srpska”.

This event, held under the slogan “Explore, Discuss, Invest”, will take place at the “Termag” Hotel complex on the Olympic mountain Jahorina, from November 12 to 13, 2024.

The event will convene distinguished representatives of domestic and international institutions, companies, and organizations, providing them with the opportunity to learn about the Republic of Srpska ad an attractive investment destination, explore public investments and economic project, and forge new pathways for future business partnerships.

During the Conference, discussions will focus on current global events and their impacts on domestic socio-economic trends, modalities for promoting exports, and the investment attractiveness of the Republic of Srpska in an international context. The conclusions of the Conference will be integrated into the development and strategic documents of the Republic of Srpska.

At the Forum, concrete offers for investment in the Republic of Srpska will be presented, from public project to investments in business and industrial zones, from business connections between international companies and companies from the Republic of Srpska through B2B meetings to the presentation of offers for the sale of companies from the Republic of Srpska.

A detailed Agenda will be published on our online platform www.investsrpskaforum.com and provided to registered participants.

TAXA Presidential Decree extended until 12/09/2024 the effectiveness of Decree No. 4.525, published in Official Gazette of 06/09/2021 (Decree of Optimization and Revitalization of Exportation Processes). Therefore, the exemptions from the legal regimes for exportation indicated in said Decree No. 4.525 continue to be in effect, in the terms and conditions established in the same. (Official Gazette No. 6.820 Extraordinary of 07/01/2024. Decree No. 4.970. Entry into force: As from 06/09/2024). The National Integrated Service of Customs and Tax Administration (Servicio Nacional Integrado de Administración Aduanera y Tributaria - SENIAT) authorized the issue and circulation of liquor warranty seals. (Official Gazette Administrative of Ruling 07/12/2024. No. SNAT/2024/000046. Entry into force: Upon publication in the Official Gazette). A Presidential Decree set at zero percent (0%) the rate of the Tax on Large Financial Transactions for transactions made by the following taxpayers: (i) Legal persons and unincorporated economic entities, categorized as special taxpayers, for the payments made by them to the debit of their accounts with banks or financial institutions; (ii) Legal persons and unincorporated economic entities, categorized as special taxpayers, for the payments made by them without the intervention of financial institutions. Cancellation is understood as the offset, novation and extinction of debts; (iii) Legal persons and unincorporated economic entities, legally related to a legal person or unincorporated economic entity, categorized as special taxpayer, for the payments made by them to the debit of their accounts with banks or financial institutions or without the intervention of financial institutions; (iv) Natural and legal persons and unincorporated legal entities that without being legally related to a legal person or unincorporated economic entity, categorized as special taxpayer, make payments for their account, to the debit of their accounts with banks or financial institutions or without the intervention of financial institutions. (Official Gazette No. 6.821 Extraordinary of 07/12/2024. Decree No. 4.972. Entry into force: As from 07/15/2024).

MISCELLANEOUSThe National Assembly enacted the Law on Promotion of Non-Oil Exports. The purpose of the Law is to establish and develop mechanisms intended to facilitate the exportation of non-oil goods and services, generated in the Bolivarian Republic of Venezuela, in order to increase Venezuelan products’ participation and competitiveness in international markets, according to the commitments and obligations undertaken in the frame of the multilateral, regional, and bilateral trade mechanisms and for the country’s integral and sustainable development. Title IV of the Decree with the Status, Value and Force of Law of Banco de Comercio Exterior is repealed, as well as the other provisions of said Decree related to the promotion of exports and all provisions contrary to the Law on Promotion of Non-oil Exports. (Official Gazette No. 6.824 Extraordinary of 07/18/2024. Entry into force: Upon publication in the Official Gazette).

The Ministry of the Popular Power for National Trade declared the following standards as Venezuelan COVENIN Standards of national character; the content of said standards will be published in the institutional web site of the Deconcentrated Service of Standardization, Quality, Metrology, and Technical Regulations (Servicio Desconcentrado de Normalización, Calidad, Metrología y Reglamentos Técnicos - SENCAMER) (www.sencamer.gob.ve). (Official Gazette of 07/10/2024. Entry into force: Upon publication in the Official Gazette).

Resolution No.Venezuelan COVENIN Standard No.It substitutes for Venezuelan COVENIN Standard No.080/20245035:2024 “Food for celiac persons, non-celiac gluten-sensitive persons, and wheat allergic persons.”081/ 20241431:2024 “Bottled drinking water. Requirements. (1st. Review).”1431:1982

EXECUTIVE SUMMARY

The Artificial Intelligence Act (Regulation (EU) 2024/1689 or the “AI Act”) integrates into the European legislative framework with the aim of establishing a harmonized set of rules for the use of artificial intelligence within the European Union. Proposed in 2021 by the European Commission and adopted on May 21, 2024, by the Council of the European Union, the AI Act is a fundamental part of the EU’s digital strategy, aiming to promote innovation and ensure safe and responsible use of AI technologies. It provides, indeed, the EU with the most advanced regulation on Artificial Intelligence (“AI”) among all the major geopolitical players in the world, aiming at ensuring the generalized application to all AI systems throughout the main industries and the development of safe and trustworthy AI systems.

While some countries have set forth rules to deal with specific issues where AI is involved, the AI Act takes an innovative - and more wholesome - approach. It provides a specific definition of AI, which delimits its scope of application. Then, it classifies specific developments of AI systems into four levels of risk (i.e. the risk-based approach), each one imposing specific duty to developers. AI systems classified in the unacceptable risk category (such as governmental social scoring) are prohibited. High risk systems must be closely monitored by the European institutions and must be subject to risk assessment and risk mitigation practices. Limited risk systems must undergo public disclosure of relevant information to enhance their transparency. Lastly, minimal risk AIs (the category that counts most types of AI) remain free to use. The international nature of the AI Act and its all-embracing regulatory ambition aim at influencing positively other international players such as the United States and China.

The AI Act, being fully and directly applicable in all the MSs, interacts with other regulations and provisions such as the General Data Protection Regulation (“GDPR”), the Cybersecurity Act, and the Digital Services Act, creating a coherent and comprehensive regulatory environment covering various aspects of digital technologies and data protection. In addition, few States already have some kind of legislations that directly involve AI, Greece being the most remarkable example. Others have a mix of different legal sources that directly or indirectly influence the development of AI, setting forth provisions that might impact the AI future development. Moreover, some States have already taken action to complement the AI Act’s provisions, introducing a stricter regime for some specific technologies while others like France and Spain, are still considering the need of introduce complementary legislation to avoid risks related to errors in AI-generated decisions, or cybersecurity issues.

While individual countries within the European Union were not directly providing funding specifically earmarked for compliance with the AI Act itself, as it primarily focuses on regulatory frameworks rather than direct funding initiatives, countries like Switzerland, Sweden, France, Germany and Hungary and the EU as a whole have been actively investing in AI-related research, development, and innovation through various programs and funding mechanisms. These initiatives are generally aimed at supporting the broader digital transformation goals of the EU, which includes enhancing AI capabilities and competitiveness.

But what is the future of the concrete application of the AI Act? To answer this question mark, it is needed to dig into the preliminary characteristics of individual States as well as their potential intervention in terms of finance by asking: (i) Do States already regulate AI at national level? (ii) Do they plan to complement, or even enhance, the AI Act’s provisions? (iii) Do they want overall to financially support the development of AI systems?

The following analysis provides a critical overview of the most relevant countries in Europe, namely Albania, Belgium, Bulgaria, Cyprus, France, Germany, Greece, Hungary, Italy, North Macedonia, Portugal, Romania, Serbia, Sweden, Switzerland and Spain.

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Albania

Albania is gradually integrating AI into its digital programs to enhance efficiency and innovation in the public sector. Law 87/2923 ratifies the agreement for the adhesion to the “Digital Europe” program, which focuses on advanced digital skills in general, though specific details on AI are not set forth. Law 43/2023 regulates electronic public services that do not require the physical presence of the applicant, while the Decision of the Council of Ministers No. 370/2022 approves the Intersectoral Strategy “Digital Agenda for Albania”, which promotes AI to improve public services, AI integration in the public sector, and data management. It also established a High-Performance Computing Center. Unfortunately, official information on governmental funding of AI is not yet available.

Belgium

In Belgium there isn’t a specific regulation on AI. However, Collective Bargaining Agreement No. 39 is applicable to these systems. The bargaining requires businesses with more than 50 employees to preemptively inform and consult trade unions, if they invest in technologies that impact on 10% of the personnel, or more. Additionally, the collective labor agreement enacted by the Royal Decree of 21 February 2024 in the banking sector makes it mandatory to train workers in the use of AI. Additionally, acts and resolutions adopted by the Belgian legislative branches regulate the use of AI in sectors such as defense, public administration and automotive (especially relevant is the permission to run tests on automated vehicles). Government funding is split into regional and state levels. The Flemish region allocated 32 million euro for AI Research and Development. It also set forth fiscal incentives for supporting the cost of labor. On the other side, the Walloon region launched the “Application and Research for Trusted Artificial Intelligence” project for the development of AI systems that enhance the competitiveness of Walloon’s businesses and awarded it 32.3 million euro. Brussels also offers many grants and subsidies to businesses in the AI industry. These three regional levels all complement the Federal programs, which mostly invest in defense.

Bulgaria

The Bulgarian Government adopted the “Concept for the Development of Artificial Intelligence in Bulgaria until 2030”, which recommends conducting a detailed analysis for a legislative proposal to be carried out only after the entry into force of the AI Act. No proposals will be forwarded until then. In the meantime, Bulgaria plans to use the European Structural Funds, the “Horizon 2020” programs, the National Recovery and Sustainability Plan, and the state budget to fund projects in the AI sector. Moreover, Bulgaria established the “Institute for Computer, Science, Artificial Intelligence and Technology” (“INSAIT”) and invested 85 million euro in it through the Ministry of Education and Science. The INSAIT is set to be the most advanced research institution in Eastern Europe, as it can rely on world-class partnerships with the most important players in the field, such as Switzerland’s “ETH” in Zurich and “EPFL” in Lausanne (two prestigious technical universities), as well as donations by Google, Amazon Web Services, DeepMind, SiteGround, VMware and other tech entrepreneurs.

Cyprus

Cyprus declared that the AI Act will be the first legislation that directly regulates AI. It presented a Strategic Plan for 2024-2026 which has allocated 282 million euro until 2026 for digitalization in general, including AI. However, much information on the development of AI in the country is lacking.

France

France’s own regulation of AI systems mostly revolves around the GDPR, and the “Loi Informatique et Libertés” of 6 January 1978, which apply to the processing of personal data. However, France is one of those countries that also legislate on more specific applications of AI systems, namely automated decisions. Individuals subject to those decisions have a right to obtain a human review of their personal situation, to express their point of view, to obtain a precise motivation in support for the decision, but also to challenge it (in line with Article 22 of the GDPR). On 12 September 2023, French representatives of the Assemblée Nationale proposed a legislation to regulate copyright-related issues, but the proposal was deemed unfeasible, and it was blocked. In 2021, President Emmanuel Macron launched its France 2030 plan, investing 2,5 billion euro in AI Research and Development. On 19 September 2023, the Government established the “Generative Artificial Intelligence Committee” to provide better guidance to the Cabinet for its decisions in the AI sector.

Greece

In Greece, Law 4961/2022 covers multiple technological developments, including smart contracts, the Internet of Things and AI. Only a few modifications are required for the Law to be fully compatible with the AI Act, which testifies Greece’s ability to legislate carefully in the area. In terms of Government funds, the Ministry of Digital Governance issued between 150 and 200 million euro for the development of AI.

Germany

Germany declared that the AI Act will be the first legislation that directly regulates AI. In 2018, Germany adopted a federal strategy for AI, significantly increasing the invested funds in the sector. Indeed, the Federal Ministry of Education and Research annual budget for technology investment increased by 20 per cent since 2017, reaching 1,6 million euro in the current legislature. These funds will be invested in eleven specific areas, including enhancing research to be a driver of innovation, setting up an agenda to expand the AI infrastructure, building the AI infrastructure, promoting social dialogue with stakeholders to responsibly integrate AI into Germany’s institutional systems, and ultimately drafting and enforcing a more effective, innovative and agile AI regulation, that fosters innovation.

Hungary

In Hungary, Government Decree 1573/2020 sets forth the national strategy on AI. This strategy has been developed by the Artificial Intelligence Coalition, which comprises more than 70 Hungarian and International companies, universities, and research groups. The Coalition’s main goal is to place Hungary as a leading power in AI, and to strengthen national businesses’ competitiveness with it. The strategy focuses on transformative programs in the manufacturing, healthcare, energy and logistics sectors. It aims at enhancing Hungary’s technologies and infrastructures, while also fostering the public comprehension of AI and its applications. The Hungarian government, through the venture capital program “Széchenyi” made funds available to support the development of AI. The funded projects include the “AI Innovation and Competence Centre and Data Asser Management”, which promotes the application of AI systems to Hungarian small and medium enterprises, the development of AI-based technology for various purposes and the establishment of the national “Laboratory for Artificial Intelligence”.

Italy

In Italy, the GDPR and copyright legislation are the main tools used to regulate the application of AI and its functioning. In particular, these are significantly important as far as the training process of AI models is concerned, since training sets may incorporate and process personal data or copyrighted work, triggering legal obligations, prohibitions and sanctions. Additionally, Italy plans to further regulate the topic, complementing the upcoming AI Act. Indeed, the Italian Government recently proposed to the Italian Senate the introduction of a new law (Disegno di legge 1146/2024 - “DDL”), which is currently being discussed by the relevant committees. The announced goal is to strike the right balance between the protection of human rights on the one hand, and the development of innovative and beneficial tools on the other. In other words, the DDL dictates general principles to follow, in order to prevent AIs from negatively impacting on human autonomy, excluding humans from the processes in which AI is employed, and depriving them of their individual decision power. Thus, the DDL safeguards freedom of information and communication, fairness in the use of data, and transparency in the training of models. The DDL also proposes to introduce more sector-specific provisions, authorizing, for example, the use of AI systems in public administration and in intellectual professions only in secondary activities in support of the core one. The Italian Government has allocated 1 billion euro to the acquisition of shares in Italian innovative businesses, including those that develop AI systems. It also plans to facilitate partnerships between the public and the private sector, for the development and the employment of fair and efficient AI systems in the public administration.

North Macedonia

In North Macedonia the main regulation that deals with AI is the national Data Protection Law, which is harmonized with the GDPR, while no other specific proposals targeting AI are planned. In 2023, the Government launched “ADA”, an AI-powered digital assistant, which provides information to citizens and businesses. Moreover, the Governmental “Fund for Innovation and Technology Development” has invested approximately 138 million euro since 2013, to support start-ups and innovative projects in North Macedonia.

Portugal

Portugal plans to align its legislation on AI with the AI Act. Portugal is one of the first countries to have developed a national strategy. In fact, in 2019 it adopted the “National Strategy on AI”, which fosters innovation in healthcare, agriculture and education. In line with the AI Act, the National Strategy too is based on a risk-based approach that aims at developing ethical and human-rights-oriented AI. Importantly, Portugal’s strategy includes the establishment of sandboxes, which are secure environments where AI systems can be tested, under the supervision of public authorities, before getting released to the public, mitigating risks related to privacy and security.

Romania

The Romanian Senate has started public discussions on 19 March 2024 for a new legislative proposal on AI. As of today, the proposal would prohibit the automatization of the flow of human resources, as well as the use of biometric data of natural persons (except for crime prevention and detection purposes). It is worth highlighting that the Romanian approach might conflict with the AI Act, therefore it might me heavily modified to align with it. In February 2024, the Ministry of Investments and European Projects published Order No. 464/2024 for the approval of a state aids scheme, and a scheme of contributions to support entrepreneurs in the development of advanced digital technologies. These schemes allocate 3 million euro in grants to foster the development of advanced technologies, including AI.

Serbia

As of today, Serbia set forth voluntary guidelines and recommendations in the AI sector, such as the “Strategy of Development of Artificial Intelligence in the Republic of Serbia for 2020-2025”, and the “Conclusion on Adoption of Ethical Guidelines for Development, Application and Use of Reliable and Responsible Artificial Intelligence”. Besides providing guidance for the development of safer AI models, these acts also envisage the enactment of new regulations and the amendment of existing laws to better face the risks posed by AI (such as a new Data Protection Law). Serbia is currently developing its 2024-2030 national strategy on AI, which is expected to be adopted by the end of the year. As Serbia is also preparing to become an EU Member, it is also likely that it will transpose and issue a law on AI that parallels the AI Act. The Serbian Government also financed AI-related projects with 1 billion euro per year, in the 2020-2025 period. The Fund for Science currently funds 12 projects under the “Program for Development of Projects in the AI Field”.

SwedenThe Swedish Government is currently collecting information to draft a national law on AI, that is in line with the AI Act. But Sweden’s most important tool to get ahead in the AI race comes in the form of investments in the AI field, and the focus on the training of human capital. In fact, Microsoft announced a 3 billion euro investment in AI-related projects, and the training of 250,000 people, highlighting the attractiveness of Sweden in the industry. In 2023 the Government established a commission on AI to enhance the competitiveness of businesses in the sector, which concluded that the public administration would benefit approximately of 14 billion euro per year thanks to the integration of AI in its processes. Sweden also established “AI Sweden”, a government-funded national center for the application of AI, in partnership with entities in both the public and the private sector, as well as universities.

Switzerland

As of today, Switzerland chose a sector-specific approach to AI regulation, including the federal data protection law of 2020 which disciplines automated decisions, granting enhanced transparency and other individual rights that are similar to those granted under the GDPR. However, the legislation might soon be integrated by a new tool, as the Federal Council started an analysis to develop general legislation on AI, by 2025 (which is set to consider the norms of the EU and of the European Council). The goal is to provide Switzerland with a clear and AI-compatible normative landscape. Additionally, the Swiss Federation supports digitalization and technological development projects, including AI programs, in partnership with universities and research institutions, such as the “ETH” in Zurich, or the “EPFL” in Lausanne. Also, “Digital Administration Switzerland” and “AI Switzerland” promote innovation and training in AI-related fields.

Spain

Spain’s main tool to regulate AI is the “National Strategy for Artificial Intelligence 2024”, in line with the AI Act. The Spanish strategy mainly focuses on cybersecurity, which is an essential element for the digital transformation of the economy. In fact, Spanish institutions are currently discussing a Cybersecurity Law, which is set to enter into force in late 2024, to grant a better protection of digital systems. Additionally, Spain established the “Spanish Agency for Artificial Intelligence Supervision” (“AESIA”), with the purpose of granting ethical and transparent practices in the use of AI. The National Strategy allocates 1,5 billion euro – from the National Recovery and Sustainability Plan – and 600 million euro from the State budget, which have already been mobilized. The plan includes investments in supercomputing, the development of language models in Spanish and other co-official languages, the promotion of talents in the AI field, and the expansion of AI in the public and private sectors, with special attention for small and medium enterprises.

United Kingdom

The United Kingdom heavily relies on the GDPR to regulate AI (which also influences automated decisions). The “Artificial Intelligence Regulation Bill” was a tentative to provide the country with horizontal regulation on AI, although its progress was stopped due to the UK’s early elections. However, the Government has already launched several initiatives in support for AI. The “AI Sector Deal” of 2018 invested 1 billion pounds for Research and Development, training and ethical research on AI. Additionally, the “AI and Data Grand Challenge” provides businesses with 2,6 billion pounds from the public sector, and 3 billion from the private one. The “United Kingdom Research and Innovation” program further invested 300 million pounds for proper computing, 250million pounds for the development of AI in healthcare and zero-emission economy, and 100 million pounds in academic centers for technological talents.

This newsletter provides a selection of opinions and analysis from our EU legal experts on interesting policy developments, recent case law and new regulatory directions of major industry practices. It is released biweekly and covers areas such as: Competition Law, Sanctions, Trade, Energy, Finance, EU funds, Data IP and Privacy, Life Sciences, Transport and Court of Justice of the European Union news.

The aim is to provide an up–to–date tool for quick and easy consultation on the most current and important topics at EU level.

Competition Law and State Aid Sanctions Trade Energy and Green Deal Banking & Finance EU Funds Life Sciences Transport and Electric Vehicles Data, IP and Privacy Consultions and Calls

EUROPEAN COMMISSION (EC)

Lithuania: the European Commission approves 122 million euro State aid measure to support AB Achema decarbonise its fertiliser production (12.07.2024) – The European Commission has approved, under EU State aid rules, a 122 million euro Lithuanian measure to support AB Achema in decarbonising its fertiliser production processes. The measure will contribute to the achievement of the EU Hydrogen Strategy, the European Green Deal and the Green Deal Industrial Plan targets, while helping to end dependence on Russian fossil fuels in line with the REPowerEU Plan. The aid will take form of a direct grant to support the installation a 171 MW alkaline electrolyser at AB Achema's production site in the Kaunas region of Lithuania. Currently, AB Achema uses natural gas-based hydrogen to produce ammonia, a key input in the production of fertilisers. The electrolyser will produce renewable and low-carbon hydrogen that will be used to produce ammonia. The hydrogen produced by the electrolyser will replace 30% of the hydrogen currently produced from natural gas, thereby reducing carbon dioxide (‘CO2') emissions and demand for natural gas. The electrolyser is envisaged to start operating in 2026. Once completed, the project is expected to avoid the release of at least 5.8 million tonnes of CO2 over the 19 years of expected operation of the electrolyser. AB Achema committed to actively share the experience and technical know-how gained as a result of the project through publications and conferences to contribute to the deployment of clean technologies in the fertilisers industry.

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The European Commission accepts commitments by Apple opening access to 'tap and go' technology on iPhones (11.07.2024) – The European Commission has made commitments offered by Apple legally binding under EU antitrust rules. The commitments address the Commission's competition concerns relating to Apple's refusal to grant rivals access to a standard technology used for contactless payments with iPhones in stores. Apple Pay is Apple's own mobile wallet used to allow iPhone users to pay with their devices in stores and online. Apple's iPhones run exclusively on Apple's operating system ‘iOS'. Apple controls every aspect of its ecosystem, including access conditions for mobile wallet developers. The Commission preliminarily found that Apple has significant market power in the market for smart mobile devices and a dominant position on the in-store mobile wallet market on iOS. Apple Pay is the only mobile wallet that may access the NFC hardware and software (‘NFC input') on iOS to make payments in stores, as Apple does not make it available to third-party mobile wallet developers. In its investigation, the Commission preliminarily concluded that Apple abused its dominant position by refusing to supply the NFC input on iOS to competing mobile wallet developers, while reserving such access only to Apple Pay. The Commission's preliminary view is that Apple's refusal excluded Apple Pay's rivals from the market and led to less innovation and choice for iPhone mobile wallets users. Such behaviour may breach Article 102 of the Treaty on the Functioning of the European Union (‘TFEU'), which prohibits the abuse of a dominant position.

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Slovakia: the European Commission opens in-depth State aid investigation into support to NAJPI for setting up a glass sand extraction sit (09.07.2024) – The European Commission has opened an in-depth investigation to assess whether public support granted to the Slovak company NAJPI a.s. (‘NAJPI') for setting up a glass sand extraction site is in line with EU State aid rules. The Commission will assess in particular whether, at the time of granting of aid, NAJPI could be qualified as an SME. The Commission will also assess whether, at the time of granting of aid, the conditions laid down in the GBER, in particular, concerning economic difficulties were fulfilled, as in such circumstances NAJPI would not qualify for regional aid. Should the Commission conclude that the Slovak support could not benefit from an exemption based on the GBER, it would assess whether the conditions of the 2007-2013 RAG were met.

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Germany: the European Commission opens in-depth State aid investigation into 6 billion euro support measure to recapitalise Lufthansa in the context of coronavirus pandemic (08.07.2024) – The European Commission has opened an in-depth investigation to assess whether a German recapitalisation measure of 6 billion euro in favour of Deutsche Lufthansa AG (“Lufthansa”) is in line with EU State aid rules. The German aid measure consisted of an equity component of 306 million euro and two hybrid instrument components, namely, Silent Participation I of 4.7 billion euro with features of a non-convertible equity instrument, and Silent Participation II 1 billion euro with features of a convertible debt instrument. The Commission found the measure to be compatible with EU State aid rules, but the General Court annulled the Commission's decision. The Commission will now carry out a more in-depth investigation to assess further the recapitalisation measure. In that regard, the Commission will focus on the following points: (i)the eligibility of Lufthansa for the aid; (ii) the need for a so-called “step-up” or similar mechanism to incentivise the exit of the State from the capital;(iii) the price of the shares at the time of a potential conversion of Silent Participation II into equity; (iv) the existence of Significant Market Power at airports other than Frankfurt and Munich, at least at Dusseldorf and Vienna airports;(v) certain aspects of the structural commitments imposed on Lufthansa.

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Italy: the European Commission leers Italian public support for Caremar ferry service (08.07.2024) – The European Commission has concluded that the public service compensation granted from 01.01.2009 to 31-07.2012 to Caremar SpA (‘Caremar') for the operation of ferry services in Italy is in line with EU State aid rules. The same applies to the compensation granted to Caremar under the public service contract concluded for the period between 16.07.2015 and 15.07.2024, after Caremar was acquired by the temporary association of companies SNAV/Rifim Srl (‘SNAV/Rifim'). Following a series of complaints, the Commission launched in October 2011 an in-depth investigation into several public support measures in favour of companies of the former Tirrenia Group and their respective acquirers. In November 2012, the Commission extended the scope of this investigation to include additional measures.

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France: the European Commission approves 10.82 billion euro State aid scheme to support offshore wind energy to foster the transition to a net-zero economy (03.07.2024) – The European Commission has approved a 10.82 billion euro French scheme to support the deployment of offshore wind energy, which will help foster the transition towards a net-zero economy. In particular, the measure will support the construction and operation of two bottom-fixed offshore wind farms: one in the South Atlantic zone and another in the Centre Manche 2 zone in Normandy. The South Atlantic wind farm is expected to have a capacity of 1000 to 1200 MW and to generate at least 3,9 TWh of renewable electricity per year. The Normandy wind farm is expected to have a capacity of 1400 to 1600 MW and to generate at least 6,1 TWh of renewable electricity per year. The aid will be granted on the basis of transparent and non-discriminatory bidding processes, which will be organised to select one beneficiary per offshore zone. Under this scheme, the aid will take the form of a monthly variable premium under a two-way contract for difference (‘CfD'), which will be calculated by comparing a reference price, determined in the tender offer of the beneficiary (‘pay as bid'), to the market price for electricity.

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The European Commission clears proposed acquisition of stake in ITA Airways by Lufthansa, subject to conditions (03.07.2024) – The European Commission has approved, under the EU Merger Regulation, the proposed acquisition of joint control of ITA Airways (‘ITA') by Deutsche Lufthansa AG (‘Lufthansa') and the Italian Ministry of Economy and Finance (‘MEF'). The approval is conditional upon full compliance with the remedies offered by Lufthansa and the MEF. Pursuant to the commitments proposed, Lufthansa and the MEF can only implement the transaction following the Commission's approval of suitable remedy takers for each of the short-haul, long-haul and Milan Linate commitments. The Commission will assess the suitability of remedy takers in the context of a separate buyer approval procedure. These commitments fully address the competition concerns identified by the Commission. Therefore, the Commission concluded that the transaction, as modified by the commitments, would no longer raise competition concerns. The decision is conditional upon full compliance with the commitments. Under supervision of the Commission, an independent trustee will monitor their implementation.

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Sweden: the European Commission approves 3 billion euro State aid scheme to support the roll-out of biogenic carbon dioxide capture and storage (02.07.2024) – The European Commission has approved, under EU State aid rules, a 3 billion euro Swedish scheme to support carbon capture and storage (‘CCS') aimed at reducing carbon dioxide (‘CO2') released during the combustion or processing of biomass (‘biogenic CO2'). The measure will contribute to the achievement of Sweden's climate targets and the EU's strategic objectives under the European Green Deal, in particular the 2050 climate neutrality goal. Under the scheme, the aid will be awarded through a competitive bidding process, with the first auction expected in 2024. Auctions will be open to companies that (i) carry out an activity in Sweden, emitting biogenic CO2, and (ii) implement projects with a capacity to capture and store at least 50,000 tonnes of biogenic CO2 per year. Under 15-year long contracts, beneficiaries will receive a grant per tonne of biogenic CO2 that is permanently stored. The aid received will be adjusted taking into account possible revenues that might stem from the projects (e.g., thanks to voluntary carbon removal certificates), as well as other public support received for the same project. The scheme will run until 31.12.2028.

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Bulgaria: the European Commission approves 25.51 million euro restructuring State aid for Bulgarian Posts (02.07.2024) – The European Commission has approved, under EU State aid rules, Bulgaria's plans to grant postal operator Bulgarian Posts restructuring aid for up to 25.51 million euro. The measure will enable the company to restore its long-term viability while minimising competition distortions. The restructuring plan sets out a package of measures for streamlining Bulgarian Post's operations, optimising its network and reducing costs. In parallel, Bulgarian Posts will develop or provide services such as telemedicine or administration through its ubiquitous network on behalf of other public entities, bringing such services closer to citizens in remote areas not well served.

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The European Commission approves 1.3 billion euro restructuring State aid for airline SAS (28.06.2024) – The European Commission has approved, under EU State aid rules, Denmark and Sweden's plans to grant Scandinavian Airlines System AB (‘SAS') restructuring aid for up to 1.3 billion euro. The measure will enable the company to restore its long-term viability while minimising competition distortions. The plan sets out a package of measures for streamlining SAS' fleet, optimising its network, reducing costs, financial burdens and increasing revenues. The plan, which is supported with new aid from Sweden and Denmark through various instruments and different amounts, is necessary to make SAS viable again, following the slower than expected recovery of the air travel demand since the outbreak of the coronavirus pandemic and the adverse effects of Russia's invasion of Ukraine.

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This newsletter provides a selection of opinions and analysis from our EU legal experts on interesting policy developments, recent case law and new regulatory directions of major industry practices. It is released biweekly and covers areas such as: Competition Law, Sanctions, Trade, Energy, Finance, EU funds, Data IP and Privacy, Life Sciences, Transport and Court of Justice of the European Union news.

The aim is to provide an up–to–date tool for quick and easy consultation on the most current and important topics at EU level.

Competition Law and State Aid Sanctions Trade Energy and Green Deal Banking & Finance EU Funds Life Sciences Transport and Electric Vehicles Data, IP and Privacy Consultions and Calls

EUROPEAN COMMISSION (EC)

The European Commission launches consultation on Trade in e-waste & amendments to the Basel Convention annexes (03.07.2024) – The fifteenth Conference of the Parties to the Basel Convention amended the Basel Convention's Annexes II, III and VIII to bring all imports and exports of electrical and electronic waste under the scope of that Convention. The amendments will enter into force from 01.01.2025 and will apply to all Parties to the Convention, including the EU and its Member States. This initiative incorporates these changes into EU law (EU Waste Shipment Regulation), which is due for publication in April 2024.

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The European Commission launches consultation on Tariff quotas – amended rules on reference quantity requirement (03.07.2024) – Regulation (EU) 2020/760 lays down rules for EU importers to apply for import licences. Importers can apply for licenses for up to the average annual quantity of products with the same origin released for free circulation in the EU in the past 2 years. This initiative adjusts the rules on reference quantity to avoid any risk of market distortions posed by recent market developments in some sensitive sectors.

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The European Commission launches EU environmental law – 2025 implementation review (05.07.2024) – The environmental implementation review is a regular cycle of analysis, dialogue and collaboration to improve the implementation of EU environmental policy and law in EU countries. This initiative identifies the main implementation gaps in EU countries and addresses their root causes, proposes solutions, provides technical assistance and facilitates the exchange of good practices, raises awareness and makes it easier for everyone involved to find information on implementing these policies.

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The European Commission launches consultation on Cooperation on direct taxation (07.07.2024) – Directive 2011/16/EU (directive on administrative cooperation - DAC) establishes a system for secure administrative cooperation between the national tax authorities of EU countries and lays down rules and procedures for exchanging information. This evaluation will assess the effectiveness, efficiency and continued relevance of the DAC and its amendments (DAC2 to DAC6), as well as its coherence with other policy initiatives & priorities and the EU added value.

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The European Commission launches consultation on energy labelling requirements for computers (18.07.2024) – The Regulation aims to help consumers choose the most energy-efficient computers by using a scale from A (most efficient) to G (least efficient). The energy label will also provide other useful information on durability and reparability. The consultation covers both the ecodesign and energy labelling initiatives. This consultation covers both the Eco-design and Energy labelling interlinked initiatives. You just need to provide feedback once.

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The European Commission launches consultation on Trade in seal products – fitness check of EU rules (07.08.2024) – Seals are hunted in parts of the world for commercial, subsistence and cultural reasons. In 1983, following people's concerns about animal welfare, the EU banned the import of certain seal pup skins. In 2009, a general ban on placing seal products on the EU market was introduced, with two exceptions. This initiative will assess if the rules in place remain fit for purpose, focusing on their socio-economic impact and their impact on seal populations.

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The European Commission launches a call for evidence on Energy efficiency – Ecodesign requirements for air heating and cooling products (review) (31.08.2024)- In 2016, an Ecodesign measure on air heating products, cooling products, high-temperature process chillers and fan coil units set minimum energy-efficiency requirements, taking effect in 2018 and in 2021. The EU is now reviewing the Ecodesign measure considering technological progress and circular-economy objectives. 

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The European Commission launches consultation on Commercial vehicles – weights and dimensions (evaluation) (05.09.2024)- Under current EU rules, commercial vehicles in the EU carrying goods or passengers by road must meet the allowable weights and dimensions. This initiative will evaluate if the rules: ensure the smooth functioning of the single market improve the environmental performance of these vehicles while safeguarding road safety. Based on these findings, the Commission will assess options to address any identified regulatory and market failures. 

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The European Commission launches consultation on EU Maritime, Fisheries and Aquaculture Fund (“EMFAF”) 2021-2027 – midterm evaluation (13.09.2024) - This midterm evaluation assesses the state of implementation of the EMFAF for the 2021-2027 programming period. It examines the Fund’s effectiveness and efficiency, coherence with other policies relevance EU added value.

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The European Commission launches consultation on Taking car rentals into other EU countries (23.09.2024)- National rules for using car rentals in other countries make car hire expensive and inefficient for the EU population. Rental companies also suffer, and inefficient rules for returning cars may lead to unnecessary greenhouse gas emissions. This initiative aims to make it easier to take private car rentals into other EU countries by setting minimum EU rules on registration, cross-border use and returning cars.

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Artificial Intelligence Act: fostering responsible AI development in Europe

Overview

The Artificial Intelligence Act (“AI Act”) is set to be published on the EU’s Official Journal soon, following the final approval of the Council of the EU on 21st May 2024. This landmark legislation aims to establish a regulatory framework for Artificial Intelligence (“AI”) across the European Union, promoting trustworthy and ethical development, deployment, and use of AI technologies. New rules will enter into force twenty days after the publication, with obligations then phased-in gradually over three years, more specifically:

Bans on prohibited practices, which will apply six months after the entry into force date; Codes of practice, which will apply nine months after entry into force General-purpose AI rules including governance, which will apply 12 months after entry into force Obligations for high-risk systems, which will apply 36 months after the entry into force

The Significance of Codes of Practice

One crucial aspect of the AI Act involves the creation of Codes of Practice for General-Purpose AI (“GPAI”) models. These codes are fundamental for bridging the gap between the high-level requirements outlined in the AI Act for GPAI providers and the practical implementation of those requirements. In essence, they serve as a detailed roadmap for ensuring compliance with the principles enshrined in the new Regulation.

Concerns Regarding Stakeholder Involvement

On 8th July 2024, certain Members of the European Parliament (“MEPs”) expressed their concerns in a letter sent to EU's AI Office urging to include civil society in the drafting of rules for powerful AI models. In particular, they argued against European Commission's initial approach, which reportedly proposed to allow AI model providers to take the lead in drafting the codes, with civil society organizations (“CSOs”) playing a more limited consultative role.

MEPs expressed apprehension that such an approach could result in codes that prioritize industry interests over broader societal concerns. They advocate for an inclusive process that actively engages a diverse range of stakeholders, including:

Companies, as input from the AI development and deployment sectors is crucial for ensuring the codes are practical and workable. Civil Society Organizations, which bring valuable perspectives on ethical considerations, potential biases, and the impact of AI on fundamental rights. Academia, with researchers and experts offering insights into the latest advancements in AI technology and potential risks. Other Stakeholders, considering that a diverse range of voices can contribute to well-rounded and comprehensive codes.

At the same time, civil society members highlight the potential for a situation where large technology companies write their own rules, potentially undermining AI Act's goal of establishing equal and globally influential standards for GPAI development.

Looking Forward

The European Commission has acknowledged the need for clarity on stakeholders’ involvement. Details regarding the participation of CSOs and other stakeholders are expected to be included in a forthcoming call for expressions of interest. An external firm will be responsible for leading the drafting process, with the AI Office maintaining oversight and approving the final versions of the codes.

The coming months will be crucial in determining how the EU navigates stakeholders’ involvement in crafting the AI Act's Codes of Practice. A transparent and inclusive process will be essential for establishing strong, effective, and ethically sound standards for trustworthy AI development across Europe.

Grimaldi Alliance expands in Sweden with SALC, a leading full service law firm with great tradition and expertise.

GA - active internationally in over 50 jurisdictions - and led by Global Managing Partner Francesco Sciaudone, announces the addition of SALC, a Swedish boutique full service law firm with great experience and professional standing.

SALC, founded in 2006, is GA's new partner for Sweden and the Scandinavian countries, completing the range of professional services that can be offered in the area with important expertise in litigation - domestic and international - and corporate.

SALC's founding partner, Dan Engström, has more than 30 years of experience in dispute resolution, as well as in franchise and commercial contract management.Engström is also admitted to handle international arbitrations, particularly in intellectual property matters.

Jan Stålhandske, another prominent partner in the firm, on the other hand, has extensive experience in the infrastructure and utilities sector and has worked on, among other things, the regulation of postal, railway and telecommunications markets.He specialises in advocacy, arbitration, acting as an arbitrator and as a lawyer.

"We are delighted to announce the entry of SALC into the Grimaldi Alliance. Their experience and professionalism allow us to expand GA's coverage to the Scandinavian region and Sweden in particular, continuing GA's international growth. Every day we receive more and more requests for support in cross-border activities from customers and partners of GA, which is increasingly establishing itself as one of the leading international networks,’ said Francesco Sciaudone, Global Managing Partner of the Grimaldi Alliance.

As of May 28, 2024, the revised Energy Performance of Buildings Directive came into force. New rules tackle both climate change and energy affordability, aiming for a significant decrease in greenhouse gas emissions and overall energy use within the EU's building sector. By 2030, all new buildings will need to be zero-emission and by 2050, the entire EU building stock should reach climate neutrality.

The revised Directive:

Sets benchmarks for building efficiency, by introducing minimum energy performance standards and establishing clear expectations for how much energy can be consumed by buildings. For non-residential buildings, this translates to a specific maximum annual energy use per square meter. A great focus is placed on improving the energy efficiency of the worst-performing buildings, likely through renovations and upgrades. Under the new Directive, Member states will have to renovate 16% of the worst-performing non-residential buildings by 2030 and 26% by 2033. Residential buildings, on the other hand, will see a focus on achieving an overall reduction in average energy use. EU Member states are asked with ensuring a 16% decrease by 2030 and a further 20-22% reduction by 2035. Pushes for phasing-out fossil fuels from heating in buildings, to achieve full decarbonisation of the sector. All new residential and non-residential buildings must have zero on-site emissions from fossil fuels as of: (i) 1st January 2028 for publicly owned buildings and (ii) as of 1st January 2030 for all other new buildings, with a possibility for specific exemptions. By 2040, national building renovation plans will include a roadmap with a view to phase out fossil fuel boilers. Member states have to outline how they will adopt measures to decarbonise heating systems, while subsidising stand-alone fossil fuel boilers will be prohibited as of 2025. Promotes sustainability, by supporting the enhancement and use of solar energy in buildings. All new buildings must comply with "solar ready" criteria, which means that they must be suitable for the deployment of solar energy installations (photovoltaic, solar thermal installations etc.) in new buildings, public buildings and existing non-residential ones, under renovation that requires a permit. New rules also encourage sustainable mobility infrastructure, including recharging points for electric cars in or next to buildings, pre-cabling or ducting for future charging infrastructure and parking spaces for bicycles. Foresees general exemptions for agricultural buildings and heritage buildings. Moreover, Member states may decide to also exclude buildings protected for their special architectural or historical merit, temporary buildings, churches, and places of worship.

Articles 30, 31, 33 and 34 of the revised Directive will apply as from 30th May 2026. Member states will have two years to incorporate new rules into their national legislation, while the European Commission will review the Directive by 2028, in the light of the experience gained and progress made during its implementation.

Corporate law 

Disputes relating to a commercial company: the director does not have the choice of jurisdiction

As a rule, the commercial courts have exclusive jurisdiction to hear disputes relating to commercial companies. By way of exception, non-commercial parties who are not members of the company's governing bodies may choose to bring their disputes before the consular or civil courts. When a dispute arises between the director or another corporate officer or partner of a commercial company and that company or another of its partners or corporate officers and concerns a dispute relating to that commercial company, it therefore falls within the exclusive jurisdiction of the commercial court.

The conditions for taking over an act performed in the name of or on behalf of a company under formation: a major change in case law

Under articles L. 210-6 and R. 210-6 of the French Commercial Code, commercial companies acquire legal personality from the date of their registration in the Trade and Companies Register. Persons who have acted in the name of or on behalf of a company under formation before it has acquired legal personality are jointly and severally liable for all acts performed, unless the company, after having been duly formed and registered, takes over the obligations entered into, which are then considered to have been undertaken by the company from the outset. In the case of an act in which it is not expressly stated that it has been entered into in the name of or on behalf of the company being formed, it is for the judge to assess, in a sovereign manner, by examining all the circumstances, both intrinsic to the act and extrinsic, whether it was not the common intention of the parties that it should be entered into in the name of or on behalf of the company and that the company could then, after acquiring legal personality, decide to take over the commitments entered into

Liability of the manager of a limited liability company (“société à responsabilité limitée, SARL”) and cancellation of his current account: limitation period

Liability claims against a former SARL manager and shareholder are subject to a three-year limitation period. A claim for damages brought against the manager for the cancellation of a current account agreement is subject to the same limitation period, and not to the five-year limitation period under ordinary law.

A creditor of a dissolved civil company (“société civile”) must take action against the company before taking legal action against a partner

A creditor of a civil company may only take action against the partners to recover a company debt after having unsuccessfully taken legal action against the company, even if the company is being voluntarily liquidated.

Statutory auditors (“commissaires aux comptes”) cannot be relieved of their duties without serious misconduct or a serious impediment

The removal of a statutory auditor requires proof of sufficiently serious misconduct. In addition, the mere fact that the entity within which the auditor carries out his duties brings an action for liability against the auditor does not constitute an impediment justifying his removal. 

IP/IT and Communication 

Non-pecuniary damage resulting from a material error in the communication of personal data

In a ruling handed down on 25 January 2024, the Court of Justice of the European Union confirmed that in the event of a personal data breach, the data subject may seek compensation for his or her loss under the conditions of ordinary liability law. A purely hypothetical risk of misuse by an unauthorised third party cannot, however, give rise to compensation.This is not the first time that the Court of Justice of the European Union has shed light on the interpretation of Article 82 of the General Data Protection Regulation, under which any person who has suffered material or non-material damage because of unlawful data processing has the right to obtain compensation for the damage caused by the data controller.

Electronic prescribing: conditions for implementation and entry into force

French decree no. 2023-1222 of 20 December 2023 formalises the entry into force of electronic prescribing by specifying the conditions for its implementation by healthcare professionals, the exercise of patients' rights and the cases in which, by way of derogation, electronic prescribing may not be applied.

Employment law

 It is up to the employer to prove the provision of business premises in order to avoid paying compensation to the employee

According to the Social Law Chamber of the French Supreme Court (“chambre sociale de la Cour de Cassation”), the burden of proving the provision of business premises to determine whether to award compensation for home occupation for business purposes lies with the employer and not the employee.

Untaken leave according to European law

The Court of Justice of the European Union has ruled on the interpretation of the directive about “working time” (“temps de travail”). A worker who has not been able to take all his paid annual leave before resigning is entitled to financial compensation. Member States may not limit this right on the grounds of controlling public expenditure.

A new formality for employers offering a permanent contract to an employee who has completed a fixed-term contract or assignment

The “loi Marché du travail” of 21 December 2022 introduced an obligation for employers offering employees a permanent contract in the same or a similar role as the completed fixed-term contract, to notify such an offer in writing. This obligation applies from 1st January 2024.

Lack of a resumption medical visit by the employee: reversal of case law

Until now, if an employee's resumption medical visit was not organised, he could not claim payment of his remuneration. However, he could be compensated for the loss suffered. In a ruling dated 24 January 2024, the French Supreme Court (“Cour de Cassation”) changed its position on compensation for employees whose resumption medical visit is not scheduled: they are now entitled to payment of their remuneration.

2024 Olympic Games: introduction of a derogation from weekly rest periods

In a decree issued on Friday 24 November, the French government authorised companies involved in broadcasting or organising the Paris 2024 Olympic Games that are experiencing an extraordinary increase in workload to suspend their employees' weekly rest periods "two or more times" between 18 July and 14 August.

Declaration of the professional equality Index before 1 March

By 1st March 2024, all companies with 50 or more employees must have calculated and published their professional quality Index on their website. The professional equality Index enables companies to measure the pay gap between women and men and highlights the areas for improvement where these disparities are unjustified.

The conditions under which foreign nationals can become “entrepreneurs individuels” have been clarified

The Immigration Law (“loi immigration”) n. 2024-42 of 26 January 2024 now stipulates that foreign nationals of countries that are not members of the European Union, the European Economic Area (EEA) or the Swiss Confederation may not work as “entrepreneurs individuels” if they do not have a legal residence permit. 

Real estate law

 It is not a violation to rent a furnished tourist accommodation more than the legal annual limit when it is justified by a professional reason, such as a work placement or the pursuit of a course of study

It should be remembered that, in municipalities that have implemented the “prior declaration registration procedure” (“procédure d'enregistrement de la déclaration préalable”) set out in article L 324-1-1 of the French Tourism Code, any person who offers for rent a furnished tourist accommodation that is declared as their principal residence may not do so for more than 120 days per calendar year, except in the case of a professional reason, health reason or case of force majeure. The legal tribunal ruled that an internship or the pursuit of a course of study can also be considered as a professional reason if it is for a specific and limited period. This exception must be demonstrated by the coincidence in time between the business trips and the periods of rental of the furnished tourist accommodation.

Commercial tenants are not liable for damage caused by obsolescence, unless expressly stated otherwise

A clause in a commercial lease requiring the tenant to return the premises in their original condition does not require him to pay for any damage caused by obsolescence. If an inventory of fixtures was drawn up when the tenant entered the premises, he must return the premises as he received them on the original inventory, except for anything that has perished or been damaged by obsolescence or force majeure. 

Tax 

An act may be considered abusive even if a lawful act could have had the same result

The abuse of rights procedure allows the tax authorities to disregard transactions that may not have been inspired by any motive other than that of evading or mitigating the tax charges that the taxpayer would normally have incurred in view of his actual situation or activities. This procedure can only be applied if the transaction resulted in a tax gain for the taxpayer. The French Council of State (“Conseil d'Etat”) clarifies that acts which have no impact on the taxpayer's burden cannot be dismissed as constituting an abuse of rights even if their sole purpose was to evade or mitigate that burden.

Financial sanctions and penalties taxed abroad are not in principle deductible

The French Council of State (“Conseil d’Etat) has recently ruled that the legal provisions which provide for the non-deductibility of tax sanctions and penalties may apply to sanctions imposed by foreign authorities for breaches of foreign legal obligations.

Sale of a business and retirement: only one year left to benefit from the 500,000 € allowance

French Finance Act (“loi de finances”) 2017-1837 of 30 December 2017 introduced an exceptional allowance of 500,000 € on the capital gain on the sale of an executive who sells his or her business and retires. This scheme, which had already been extended, expires on 31 December 2024. Senior company directors planning to sell their business and retire still have a year to take advantage of this attractive tax window.

Lisa Alice Julien new Board Member of the Italian Chamber of Commerce for France (CCI France Italie)

We are pleased to share that our Partner, Lawyer in France and in Italy, Lisa Alice Julien, is now Member of the Board the Italian Chamber of Commerce for France (CCI France Italie).

This esteemed role reflects Lisa Alice’s unwavering commitment to fostering strong economic and professional ties between Italy and France.

Her strategic vision and deep expertise will undoubtedly contribute to the continued growth and success of the Chamber, as well as to the strengthening of collaboration between the two countries.Learn more about the Chamber's governance: https://www.chambre.it/chi-siamo/governance.html

We extend our heartfelt congratulations to Lisa Alice Julien on this significant achievement!