On 4 February 2019, Argentina published Resolution 6/2019 of 31 January 2019 in the Official Gazette, which establishes a special promotion regime for the development of the mining activity in the Argentine territory provided by Law No. 24,196. The resolution prescribes benefits for those persons registered in the Registry of the aforementioned law including 100% current year deduction for investment in prospection, exploration, special studies and other research used toward feasibility studies, as well as the specific accelerated depreciation regime for those registered in the mining investment registry. The key points of the resolution are as follows:
- Registered taxpayers under the mining regime need to submit an annual sworn statement within 30 days after the deadline for the annual tax return, which includes information on deductions and accelerated depreciation taken.
- An amended return must be submitted, if registered taxpayer intends to use an asset for a non-mining activity or intends to transfer a depreciable asset that essentially recaptures the accelerated depreciation taken.
- If a taxpayer requesting the sale of mines or mining rights before the fulfillment of the term of FIVE (5) years established in Law No. 24,196 of mining investment, an amended return must be filed that recaptures the benefits taken, unless an exception is granted.
The resolution is effective from 4 February 2019 and shall be valid for FOUR (4) years with the possibility of extension, in accordance with the provisions of resolution no. 353.
