27 March 2019
On 15 March 2019, Argentina published Decree 196/2019 in the official gazette amending Decree No. 379 which was issued in 2001. The decree amends and extends one year (from January 1 to December 31, 2019) tax incentives for the local production of certain goods, together with capital goods, IT and telecommunications equipment, and agricultural machinery.
The benefit to be granted will be equivalent to 50% of the value resulting from the summation of the following components applicable to the value of capital assets reached by this Regime:
- 6% of the sale’s price of the goods, less the value of the components that were imported with an import right of 0% duty; and
- 8% of the amount resulting from deducting the value of the components that were imported with a duty higher than 0%.
Moreover, the decree prescribes the following scheme:
- requesting to issue tax bonds for invoices issued until December 31, 2018, whose filings are formalized until March 31, 2019, the benefit to be granted will be the equivalent to 80% of the value that result of the summation of components provided above;
- for micro, small, and medium-sized companies, the credit is equal to 60% of the above amounts for invoices issued between 1 January 2019 and 31 December 2019, provided that the request is finalized by 31 March 2020; and
- the tax reimbursement may be increased by 15% to the extent the manufacturers can prove they are making investments in productivity, quality and innovation in processes and products, under certain terms to be established by the Government.
