The producers of the agricultural and agro-industrial sector now can enjoy the exemption of 15% regarding to the Sales Tax.
Through Legislative Decree No. 119-2016, published in La Gaceta, the Official Newspaper, on August 25th, article 15 subsection e) of the Sales Tax Law was amended, in which the goods and services exempt of the payment of the 15% are extended, it also exonerates the payment of such tax in the import or purchase of machinery, equipment and implements, accessories and spare parts, equipment and irrigation materials, irrigations systems for agriculture, industrial cleaning, packing materials and containers, which are involved in the agro-industrial production.
Furthermore, the Ministry of Finance in coordination with the Tax Administration, issued the Tax-Customs Instructive for the application of the article 15 subsection e) of the Sales Tax Law, through Executive Agreement 440-2016, published in the Official Newspaper “La Gaceta" on October 11th. The document establishes eight categories of goods between raw material, supplies, equipment and machinery for the agricultural and agro-industrial production.
This tax incentive’s objective is to promote the growth of the agro-industrial and agriculture activity in the country, for the purpose of influencing the final products on the national market and allowing growth of exports to other countries.
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