On 12 October 2023, Argentina published Law 27734 in the Official Gazette, which outlined the establishment of a tax incentive regime to enhance organic food production. The incentives will be distributed to eligible producers and/or processors of organic food products. These incentives are also available for natural and legal persons in Argentina provided their annual sales do not surpass the threshold for category 1 medium enterprises.
As per the incentives, an employer can receive a tax credit bond amounting to 50% of their social security contributions for employees involved in the production and/or preparation of organic products. Furthermore, there is a 50% reduction in income tax for income derived from promoted activities covered by the law.
The tax incentive regime will remain effective for 10 years from the publication of Law 27734.