On October 21, 2015 the Official Gazette published Law N° 27,191 that expanded the tax benefits of Law N° 26,190 applicable to the national promotional regime for the use of renewable energy for the production of energy. The tax benefits will vary depending on whether the start-up date of the project is on or before December 31, 2016, December 31, 2017, December 31, 2021, or December 31, 2025.
The tax benefits of Law N° 27,191 are:
- 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.
- Dividends or profits distributed by the holders of investment projects will not be subject to income tax on a 10% rate when such profits are reinvested in new infrastructure projects in Argentina.
- 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).