Tax benefits for investments in capital goods

Under this Law, investment projects initiated from October 2007 on -but not yet completed- may also benefit from the investment promotion regime.

The regime is available for legal entities incorporated in Argentina, branches of foreign companies and individuals domiciled in Argentina. However, it is not available for those subject to bankruptcy proceedings; those criminally accused by the Tax Authority (“Administración Federal de Ingresos Públicos” or “AFIP”) or those who have requested the tax benefits set forth in Law No 24,402 (financing of the VAT).

The taxpayers shall be able to choose between one of the following benefits:

(i)                 accelerated depreciation of the investment, or

(ii)                 accelerated reimbursement of the VAT balance in their favor.

However, both benefits may be applicable together in case of investment projects destined to the external market or to an industrial sustainable retrofitting.

The National Executive Branch shall name the authority in charge of applying said regime.