On March 15, 2019 the Official Gazette published General Resolution 4437/2019 implementing the accelerated amortization rules of Law No. 27,191. Law No. 27,191 expanded the tax benefits of Law No. 26,190 applicable to the national promotional regime for the use of renewable energy for the production of energy.
The tax benefits of Law No. 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.
- 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).