The Argentine Government has extended the tax incentive regime for local manufacturers of capital goods, information technology, and telecommunications through 31 December 2020.
This incentive regime is intended to improve international competitiveness in the local capital goods manufacturing industry by promoting local manufacturing and establishing equal conditions for the provision of such goods, given that such industries are strategic sectors for Argentina’s economic development.
Likewise, the government intends to promote the realisation of new innovation projects, as well as technological research and development on behalf of companies manufacturing such goods.
Furthermore, this regime provides for the grant of a fiscal credit bond that can be used by the beneficiaries or the assignees (the bond can be transferred to third parties) for the payment of different taxes such as Value Added Tax (VAT) and tax return balances that are collected by the Federal Administration of Public Revenues (AFIP). Beneficiaries of this regime have until 31 March 2021 to request the issuance of a fiscal bond.