Key Benefits:
The Senate and Chamber of Deputies of the Argentine Nation assembled in Congress, etc. sanction with force of Law:
PART I
General provisions
ARTICLE 1 Institute a transitional regime for the fiscal treatment of investments in new capital goods ,except cars ., which review the quality of movable goods amortizable in the tax on profits, for industrial activity, as well as for infrastructure works .excluding the civil works que that meet the characteristics and are intended for the activities established by the regulation.The regime established by this Act shall be governed by the scope and limitations set forth in the Act and by the regulatory rules which the national executive branch provides.
ARTICLE 2 The present regime may be accepted by natural persons domiciled in the Argentine Republic and the legal persons constituted therein, or who have been authorized to act within their territory in accordance with their laws, duly registered in accordance with them, that they develop productive activities in the country or are established in the same for that purpose and that they credit under affidavit, to the relevant authority of application, the existence of a project of investment in subsequent activitiesThose interested in taking part in the present regime should register for registration which shall enable the application authority.
The persons concerned shall also credit the generation of genuine jobs, in accordance with the labour legislation in force in each area of activity.
ARTICLE 3 Subjects that are reached by this regime may, in accordance with the provisions of the following articles, obtain the advance return of the value-added tax for the goods or infrastructure works included in the proposed investment project or, alternatively, practice in the profit tax the accelerated amortization of the same, not being able to access the two treatments for the same project and being excluded from both when their tax credits have been financed by the law.The benefits of accelerated amortization and early return of VAT will not be mutually exclusive in the case of investment projects whose production is exclusively for the export market. In these cases, the beneficiaries can access both tax treatments simultaneously.
PART II
Value added tax.
Early return
ARTICLE 4 The value-added tax that by the purchase, manufacture, processing or final importation of capital goods or the construction of infrastructure works referred to in Article 1 of this Law would have been invoiced to the persons responsible for the taxation, after at least three (3) fiscal periods have passed from that in which the respective investments have been made, shall be credited to them against other taxes by the Federal Public Income Administration in respect of the circumstances Such accreditation or return shall be made to the extent that the amount of such credits should not be absorbed by the respective tax debits originating from the development of the activity.The regime established in the preceding paragraph shall not apply when, at the time of the request for accreditation or return, as appropriate, capital assets do not integrate the assets of project holders.
Where the goods referred to in this article are acquired in the terms and conditions established by law 25,248, tax credits for the canons and the purchase option may only be computed for the purposes of this regime after at least three (3) fiscal periods have been incurred from the one in which the said option has been exercised.
It cannot be done, the accreditation provided for in this regime against obligations arising from the substitute or solidarity responsibility of third-party debt contributors, or their performance as retention or perception agents. Nor will the reference to tax credits be applicable solely for the financing of funds with specific impact.
For the purposes of this regime, the value-added tax for investments referred to in the first paragraph of this article shall be charged against tax debits once the remaining tax credits related to the encumbered activity are computed.
PART III
Tax on profits.
Accelerated amortization
ARTICLE 5° Subjects that are reached by this regime, by investments made under article 1 of this Act, may choose to perform the respective amortizations from the fiscal period of the asset, in accordance with the rules provided for in article 84 of the law on the taxation of profits, a text ordered in 1997 and its modifications, or in accordance with the following regime:(a) For investments made during the first twelve (12) immediate calendar months following the entry into force of this law:
I. In movable goods acquired, produced, manufactured or imported in that period: at least three (3) annual, equal and consecutive quotas.
II. In infrastructure works initiated in that period: at least in the amount of annual, equal and consecutive quotas that arise from considering their life reduced to fifty per cent (50%) of the estimated;
(b) For investments made during the second twelve (12) immediate calendar months following the date indicated in subparagraph (a):
I. In movable goods acquired, produced, manufactured or imported in that period: at least four (4) annual, equal and consecutive quotas.
II. In infrastructure works initiated in that period: at least in the amount of annual quotas, equal and consecutive that arises from considering their service life reduced to sixty percent (60%) of the estimated;
(c) For investments made during third parties twelve (12) immediate calendar months after the date indicated in subparagraph (a):
I. In movable goods acquired, produced, manufactured or imported in that period: at least five (5) annual quotas, equal and consecutive.
II. In infrastructure works initiated in that period: at least in the amount of annual quotas, equal and consecutive that arises from considering their life reduced to seventy percent (70%) of the estimated.
ARTICLE 6 In the case of operations that are entitled to the option provided for in article 67 of the law on income tax, which was ordained in 1997 and its modifications, the special amortization established by the regime established by this law must be applied to the specific cost in accordance with the provisions of the law. If the acquisition and sale are carried out in different fiscal years, the eventual overcomputed amortization must be refunded in the tax balance corresponding to the disposal.The treatment granted by this regime is subject to the condition that the acquired assets remain in the taxpayer ' s assets for three (3) years from the date of release. If this condition is not met, it is appropriate to rectify the affidavits submitted and to enter the resulting tax differences with more interest, except as provided for in the next paragraph.
The expiry of the above-mentioned treatment shall not occur in the case of replacement of assets that have enjoyed the franchise, whereas the amount invested in the replacement is equal to or greater than that obtained for sale. When the amount of the new acquisition is less than the amount obtained in the sale, the proportion of the computed amortizations that under the reinvested amount is not reached by the regime will have the treatment indicated in the previous paragraph.
PART IV
Common provisions for titles II and III
ARTICLE 7 The regime established by this Act shall not apply to:(a) The amortizable movable property covered by existing works having an effective principle of execution prior to the entry into force of this law and the infrastructure works initiated prior to that date;
(b) Investments to be carried out under contractual obligations, taken prior to the entry into force of this law, with the national State, provincial states, municipalities and the Government of the Autonomous City of Buenos Aires.
ARTICLE 8 Once the start-up or the impact of the goods on the productive activity, the enforcement authority and the Federal Public Income Administration, autarchical entity within the Ministry of Economy and Production, will verify the fulfillment of the objectives stated in the investment project by the responsible.To this end, the implementing authority, taking into account the type of project in question, shall set the time limit on which the project ' s forecasts should be met and, together with the collected agency, shall have the modality, frequency and any other aspect of compliance control.
Failure to comply shall be resolved through an act founded by the enforcement authority and shall not correspond, in respect of the subjects covered, to the procedure established by articles 16 et seq. of the law 11.683, a text ordered in 1998 and its amendments, but that the determination of the debt shall be executed with the mere intimation of payment of the tax and its accessories by the Federal Public Income Administration, autarchic entity in the Ministry of Economy and Production.
The term of the statute of limitations to require the restitution of the credits accredited or returned or, where appropriate, of the tax on the proceeds entered in default, with more the accessories to which there is a place, shall be five (5) years from 1 January of the year following the end of the period set for the completion of the project's forecasts.
ARTICLE 9 Failure to comply with the provisions of this Act, without prejudice to the restitution to the Fisco of the tax credits promptly credited or returned, or, where appropriate, of the tax on the proceeds entered in default, with more the respective securities, will result in the application of the following penalties:(a) Total expiry of the treatment granted by the time of the regime ' s operation;
(b) A fine equal to one hundred percent (100%) of the tax credited or returned or, if any, entered in default.
The enforcement authority shall determine the procedures for the implementation of the sanctions set out in this article.
ARTICLE 10. The treatment provided by the present regime may not be accommodated in any of the following situations:(a) Declared in a state of bankruptcy, in respect of which the continuity of exploitation has not been provided, in accordance with the provisions of Acts 19,551 and its amendments, or 24,522 as appropriate;
(b) Complaints or complained criminally by the then Impositive General Directorate, under the former Treasury Secretariat of the then Ministry of Economy and Public Works and Services, or the Federal Public Income Administration, on the basis of laws 23,771 and its amendments or 24,769, as appropriate, in respect of which the corresponding tax requirement for raising to trial has been formulated before the approval of the project is issued;
(c) Pronunciated formally or criminally charged for ordinary offences that have connection with the breach of their tax obligations or that of third parties, in which respect the corresponding tax requirement for raising to trial has been formulated before the approval of the project is issued;
(d) The legal persons sincluding cooperatives cooperativa in which, as appropriate, their partners, administrators, directors, trustees, members of the monitoring council, counselors or those holding equivalent positions in them, have been formally denounced or criminally charged for common crimes that have connection with non-compliance with their tax obligations or that of third parties, in which respect the corresponding tax requirement of lifting has been formulated prior to approval.
The occurrence of any of the circumstances referred to in the preceding paragraph, produced after the approval of the project, will be a cause of complete expiry of the agreed treatment.
Subjects who are beneficiaries of this regime shall previously waive the promotion of any judicial or administrative proceedings in connection with the provisions of Decree 1043 of 30 April 2003 or to claim for tax purposes the application of updating procedures whose use is prohibited in accordance with the provisions of Law 23,928 and its amendments and Article 39 of Law 24.073 and its amendments. Those who, at the time of entry into force of this law, have already promoted such processes, must desist from the actions and rights invoked in them.
In the case of the waiver referred to in the preceding paragraph, the payment of coasts and expenses shall be imposed in the order caused, waiving the Fisco, the collection of fines, punitories and any other mechanism to increase the controversial tax. The beneficiary may be reclaimed only as a result of the use of the update procedure referred to in part one of the preceding paragraph.
ARTICLE 11. . Apply an annual tax quota of one billion pesos ($ 1 billion.000) to be applied to the regime established by this law, of which seven hundred million pesos ($ 700,000) will be attributed to the tax treatment provided for in Title II, and three hundred million pesos ($ 300,000.000) for the tax treatment provided for in Title III, which will be determined by the national tax treatment. Such a mechanism should include a technical phase and an economic phase.
The fiscal quota established in the preceding paragraph does not include the tax treatments agreed upon by this regime originating in the execution of infrastructure works covered by it, which will be established by the implementing authority for each particular project.
An annual tax quota of two hundred million pesos ($ 200,000.000) additional to those contemplated in the previous paragraph will be allocated exclusively to investment projects developed by companies that qualify in accordance with the regulations in force such as Small and Medium Enterprises. Of this quota will be allocated 140 million pesos ($ 140,000.000) for the tax treatment provided for in Title II and sixty million pesos ($ 60,000.000) for the tax treatment provided for in Title III.
ARTICLE 12. The Ministry of Economy and Production shall be the authority for the application of the regime established by this law and shall be responsible for the approval of the investment projects that adhere to it, and may request the intervention of the jurisdictions with competence in the corresponding branch or activity.The national executive branch shall biannually inform both Houses of the National Congress of the approvals of the investment projects that have adhered to the regime established by this law, referring the actions that originated the allocation.
ARTICLE 13. The provisions of Act No. 11,683, which were ordained in 1998 and their amendments, of the value-added tax law, ordained text in 1997 and its amendments, and of the income tax law, ordained text in 1997 and its amendments, shall apply in all matters not provided for in this Act. ARTICLE 14. Invite the provinces and municipalities to adhere to the promotional criterion of the present Act, in full or in part exempting the sales of the goods covered by the present regime from gross and seal taxes. ARTICLE 15. The provisions of this Act shall enter into force on the day of publication in the Official Gazette. ARTICLE 16. Contact the national executive branch.IN THE SESSION OF THE ARGENTINE CONGRESS, IN GOOD AIRES, TO THE DIASS OF THE MONTH OF AUGUST OF THE YEAR DOS MIL CUATRO.
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EDUARDO O. CHANGE. A. GUINLE. . Eduardo D. Rollano. . Juan Estrada.
NOTE: The bold text was observed.