Argentina Market

Law 26360 sets forth an investment promotion system, granting the benefit of accelerated asset depreciation for Income Tax purposes and/or an early refund of Value Added Tax.

 

In both cases, the objective is to encourage investments on: new capital goods for industrial activities (except for the automobile industry) and infrastructure works executed by national companies or public utility concessionaires. This system is meant for individuals or companies that can prove they have an existing investment project for industrial activities or infrastructure works.

 

Overall, beneficiaries of this system cannot request to have both incentives for one same project. However, investment project owners can do it, when their production is only meant for exports and when they are environmentally friendly. This benefit is available until the year 2010.

 

Up until December 31, 2008, for new capital goods whose NCM (Harmonized Tariff System of Mercosur) positions are comprised under Executive Order 509/2007, as amended, a 0% Extra-Zone Import Duty is set, and they are exempted from paying the statistical rate.

 

Legal Rule: Resolution 8/2001, as amended, Executive Order 502/2001, Executive Order 690/2002. Executive Order 40/2005 CMC Mercosur; Resolution 62/2005 and Executive Order 509/2007.

Enforcement Authority: Customs Administration

 

A reduced 10.5% rate is applied (the general rate is 21%) to sales and imports of finished capital goods and of information technology and telecommunications assets (both finished products and components).

 

The additional VAT rate to imports of personal property reached by the reduced general rate is also lower, i.e., 2.5% and 5.8% respectively, based on whether it applies to a VAT registered payer or any other type of tax subject.

 

Legal Rule: Executive Order 493/2001, Executive Order 496/2001, Executive Order 615/2001, Executive Order 733/2001, Executive Order 959/2001.

Enforcement Authority: Federal Administration of Public Revenue

For further information: www.industria.gov.ar

 

The system established under Resolution 256/2000 allows for a zero tariffs on imports of new goods intended for autonomous production lines of tangible goods. Goods imports under this regime could be transferred or re-exported only after two years in the country. Spare parts can also be imported under this program.

 

Legal Rule: Executive Order 256/2000, as amended.

Enforcement Authority: Office of the Secretary of Industry, Trade and Small and Medium-Size Enterprises.

For further information: www.mecon.gov.ar/sicym/comercio

 

The Lease and Sale Contract System consists in a lease agreement with an option to purchase personal and real estate property, brands, patents or industrial models and software.

 

Legal Rule: Law 25248, Executive Orders 459/2000, 1038/2000 and 1352/2005.

Enforcement Authority: Banks

For further information: www.infoleg.gov.ar

 

Based on the operating modality of each company, keeping capital goods for a certain period may be necessary, to then send them back overseas. By this temporary imports system, assets can be imported and exempted from paying import duties for a period of up to three years (with a possible extension for a period identical to that originally requested).

 

Legal Rule: Law 22415, Executive Order 1001/1982, DGA 34/1998.

Enforcement Authority: Customs Administration

For further information: www.infoleg.gov.ar

 

At present, and until 12/31/08, used production lines are taxed with a 6% import duty.

 

Legal Rule: Resolutions 511/2000, 157/2003, 255/2003, 353/2004, 78/2006, 86/2007, 18/2007

Enforcement Authority: Office of the Secretary of Industry, Trade and Small and Medium-Size Enterprises