Company: APXIF
Filing Date: 2025-01-22
Form Type: F-4
Source: 0001213900-25-005463
Chunk: 158

Company: APx Acquisition Corp. I
Filing Date: 2025-01-22
Form: F-4
Chunk 158
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 required to apply IAS 29 to their financial statements for periods ending on and after July 1, 2018. Our Argentine subsidiary, which has Argentine Pesoas its functional currency, prepares its financial statements in compliance with IFRS, adopting IAS 29. From a tax perspective, in December 2019, the Argentine Government promulgated Law 27,541. It provided that the tax rate reduction established by Law 27,430 (reduction of the income tax rate from 35% to 30% for fiscal periods beginning on January 1, 2018 until December 31, 2019, and 25% for fiscal periods beginning on or after January 1, 2020, inclusive) be suspended until the fiscal years beginning on or after January 1, 2021. Thus, the tax rate of 30% was maintained. Law 27,541 also provided that, for the first and second financial years starting on or after January 1, 2019, one -sixthof the inflation adjustment (provided by Law 27.430) will be computed in the fiscal year of the adjustment calculation and the remaining five -sixthsin equal parts in the five tax periods immediately following. On June 16, 2021, the Argentine Government enacted Law No. 27,630 which amended the Argentine Income Tax Law and replaced the fixed rate paid by Argentine companies on their corporate income from 30% to a progressive rate ranging from 25% to 35%. Depending on net incomes, companies will now have to pay a fixed amount and a progressive rate over the surplus of the minimum base rate in their category. The reform also extends the 7% withholding tax on dividends for tax years beginning January 1, 2021 and thereafter. According to applicable law and if no additional tax reform is passed, for fiscal years beginning on or after January 1, 2021, subject to certain exceptions, 100% of the tax inflation adjustment (negative of positive) would be allocated by fiscal year. We cannot predict the future impact that the application of IAS 29 and the eventual application of the tax indexation procedure and related adjustments will have on our Argentine subsidiary’s financial statements or the effects on our business, results of operations and financial condition. Also, we cannot predict when the application of IAS 29 and the tax indexation will no longer be mandatory. 59 Limited access of the Argentine government and the private sector to the international capital markets