Argentina has published Decree 196/2019 of 14 March 2019 in the Official Gazette. The Decree amends and extends to 31 December 2019 the incentive provided under Decree 379/2001 for the domestic manufacture of certain goods, including capital goods, IT and telecommunications equipment, and agricultural machinery. The incentive is in the form of a tax credit equal to a percentage of the value (sales price) of the goods produced (with adjustments for imported inputs, parts, or components) that can be applied against value added tax, income tax, excise taxes, and minimum presumed income tax payments.

With the extension, for invoices issued between 1 January 2019 and 31 December 2019, the credit is equal to 50% of the following amounts:

• 6% of the sales price after deducting the value of imports incorporated in the good with an import duty of 0%;
• 8% of the sales price after deducting the value of imports incorporated in the good with an import duty greater than 0%.

The Decree also provides that:

• For invoices issued up to 31 December 2018, the credit is equal to 80% of the above amounts, provided that the request is finalized by 31 March 2019;
• For micro, small, and medium-sized companies, the credit is equal to 60% of the above amounts for invoices issued between 1 January 2019 and 31 December 2019, provided that the request is finalized by 31 March 2020; and
• The credit amounts above may be increased by up to an additional 15% if the beneficiary proves the realization of investments aimed at improving productivity, quality, and innovation in processes and products.

The Decree is effective from 1 January 2019 and taxpayers have until 31 March 2020 to apply for the credit in respect of invoices issued up to 31 December 2019.