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Argentina Extends Domestic Capital Goods Manufacturing Incentive — Orbitax Tax News & Alerts

On 1 July 2016, Argentina published National Decree no. 824/2016 in the Official Gazette. The Decree extends to 31 December 2016 the incentive provided under Decree No. 379/2001 for the domestic manufacture of certain goods, including capital goods, IT, telecommunications equipment, and agricultural machinery. The incentive is in the form of a tax credit equal to 14% of the value of the goods produced that can be applied against value added tax, income tax, excise taxes and minimum presumed income tax payments.

For the incentive to apply, taxpayers must submit an affidavit by 31 December 2016 confirming that the number of registered employees has not decreased from the number of employees registered as of December 2011. Taxpayers have until 31 March 2017 to apply for the credit for sales invoiced by 31 December 2016 in respect of goods delivered to the purchaser after 30 June 2014.