On 11 October 2017 the Official Gazette published Decree 814/2017 establishing the import duties exemption for components used in the generation of renewable energies.
The exemption will be for 12 months or 60 months depending on the goods to be imported.
Decree 814/17 is issued in the context of the promotional regime established by Law 27,191, which establishes the following benefits:
- Accelerated amortization in income tax for those assets or infrastructure works included in the investment project.
- Refund of Value Added Tax (VAT) for those assets or infrastructure works included in the investment project.
- The aforementioned benefits regarding income tax and VAT could be used simultaneously.
- It extends from 5 to 10 years the period for the deduction of tax losses for income tax purposes.
- The assets used for the project will not be part of the tax base for minimum presumed income tax purposes from the first day of the star-up of the construction works until the eighth year (inclusive) from the date of the start-up of such project.
- Losses, interest and exchange differences arising from the financing of the project may be deducted for income tax purposes.
- The beneficiaries of this regime that can prove that 60% -or a lower percentage in special situations- of the electromechanical installations -excluding civil works- are manufactured in Argentina will be entitled to receive, as an additional benefit, a tax certificate to be used for the payment of national taxes, of a value equivalent to 20% of the national component of the electromechanical equipment (excluding civil works).
- The importation of capital goods or any other special equipment which is necessary for the project will be exempt of import tax and any other related tax (excluding service fees).