Tax news

1. Industry promotional regime – Decree No 490/2003

Decree No 490/2003 was published in the Official Gazette on March 6, 2003. The decree reinstated and amended the industry promotional regime regulated by Law No 19,640. According to such decree, companies may elect to be subject to this regime until December 31, 2005. All the rights and obligations arising from this regime will be in force until December 31, 2013.

In order to make use of this regime, companies with both new and ongoing projects shall waive and release the Federal and the Provincial Government of any claim existing prior to the decree’s entry into force, whether at an administrative or judicial stage, related to the promotional regime set forth by Law No 19,640. The waiver and release shall be made within 90 days from the decree’s entry into force.

2. V.A.T. – Resolution (AFIP) No 1466/2003

The Tax Authority (AFIP) regulated the procedure for the transfer, confirmation and subsequent use of the freely disposable V.A.T. balance. To make use of this procedure, the assignor taxpayer shall not have liquid and payable taxes and social security liabilities. Filings provided by this regime shall be filed as from April 21, 2003.

Furthermore, the Tax Authority established:

(a) Assignments of freely disposable V.A.T balance filed until March, 19 2003 (including such date) must comply with the provisions of this resolution, through a new filing that has to be made as from April 21, 2003 (including such date) until June 20, 2003.

(b) The requests filed as from March 20, 2003 until April 20, 2003 (including such date) have no effect, since the term has been established in order to allow the taxpayers to fulfill their tax forms according to the conditions and requirements provided by this regime.

3. Use of Tax Credit Certificates

(a) “Bomchil Máximo c/ Poder Ejecutivo Nacional – Law No 25,561; Decree No 1,570/2001; Decree No 214/2002 s/ ‘amparo’ Law No 16,986”.

In re Bomchil, the First Instance Judge in Federal Matters No 4 resolved to: grant a precautionary measure requested by a taxpayer against the Tax Authority, suspend the effects of Decree No 2,243/2002 and order the Tax Authorities (AFIP) to accept the Tax Credit Certificates to pay the fifth installment of the Income Tax and the Personal Assets Tax .

(b) “Brown de Bass, Lilian Helena c/ Estado Nacional, AFIP, DGI s/ DGI”.

In re Brown de Bass, the First Instance Judge in Federal Matters No 4 rejected a taxpayer’s challenge to a resolution of the tax authority that had denied a claim to accept the payment of an installment of the Income Tax with “Bontes 2003” not converted into Tax Credit Certificates.