Argentina has published Decree 1051/2020 of 28 December 2020, which extends to 31 December 2021 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 (credit bond) 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 national taxes, including value added tax, income tax, excise taxes, and minimum presumed income tax payments.
The terms of the incentive as extended are in line with prior extensions, including that for invoices issued up to 31 December 2021, the credit is equal to 50% of the following amounts:
For micro, small, and medium companies, the 50% mentioned above is increased to 60%. Further, credits may be increased by an additional 15% in certain cases where a beneficiary provides, with each request, that the realization of investments is aimed at improving productivity, quality, and innovation in processes and products, within the scope, forms, and conditions established by the Enforcement Authority.
The Decree is effective from 1 January 2021 and taxpayers have until 31 March 2022 to apply for the credit in respect of invoices issued up to 31 December 2021.
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