The national government announced today the labor reform project already submitted to the Senate and incorporated it into its articles Medium Investment Incentive Scheme (RIMI)a system that provides tax benefits for investments between $150,000 and $9 million.
This initiative was particularly expected by the agricultural industry, as this sector was excluded from the directive Large Investment Incentive Scheme (RIGI) and called for the launch of an initiative that would enable new investments accelerated payback and VAT refund.
As described in Title XXIII of the Project, the objectives of the regime are “Promoting medium-sized domestic and foreign investments to ensure the prosperity of the country; promoting economic and value chain development; further develop and strengthen the competitiveness of the various sectors of the economy; increasing exports of goods and services; and promote job creation.”
The beneficiaries of RIMI are the companies classified as Micro, small and medium-sized enterprises (up to and including the category of medium-sized enterprises, tranche 2) that make productive investments in the country in the first two years after the regime comes into force.
These investments will be for “them.” Acquiring, preparing, manufacturing and/or importing new personal property (except automobiles) deductible in income tax, as well as the execution of works directly affected by the development of productive activities on Argentine territory”, while investments in financial assets, portfolios and stock market assets are not considered as such.
However, Article 176 specifically mentions certain special investments in agriculture, such as those made in Irrigation systems and/or devices, high energy efficient goods, anti-hail nets for the agricultural sector and livestock products (livestock)which will be transportable, regardless of the investment amount involved.
The minimum investment amount to access the benefits varies depending on the category of business: for micro-enterprises, $150,000; for small businesses, $600,000; for medium-sized companies, tranche 1, $3.5 million; and for medium-sized companies, tranche 2, $9 million.
Accelerated amortization in the Income tax It varies depending on the investment made: for depreciable movable property, two annual, equal and consecutive installments; for construction investments at least in the amount of equal and successive annual installments resulting from taking into account the useful life reduced to 60% of the estimated useful life; in agricultural irrigation equipment and/or high energy efficiency equipment for a fee; for depreciable assets, two annual, equal and consecutive installments; and in hail protection nets for a fee.
As for them Reimbursement of VAT tax creditsa further RIMI tax benefit, they may be “calculated for the purposes of their refund provided for in this regime after three monthly tax periods have elapsed, starting from the one in which their calculation was appropriate.”
The inclusion of RIMI was positively received by agricultural businesses, particularly the Argentine Agribusiness Council (CAA)who claimed that she had achieved the same thing.
“The efforts and agreements with the Minister of Economic Affairs, Luis Caputoauthorities of the Ministry of Economic Affairs; The Mayo Council and Senator Carolina Losada succeeded in incorporating the RIMI into the bill,” they noted.
For the President of the CAA, Gustavo Idigorasclaimed that “workforce modernization and RIMI will have a positive impact on investment, employment, production and agro-industrial exports at an incremental scale of approximately 100% $15 billionand benefits to agricultural producers.”
“We will work in the Senate to make progress and improvements will be made to achieve full competitiveness and we will help the RIMI reach all types of agribusiness and agro-industrial companies,” Idígoras concluded.
On your part the Grain and trading exchange of the country also supported the measure: “The companies consider that this regulation represents a key tool to create better investment conditions in the agricultural sector, promoting productive growth, the integration of technology and the expansion of installed capacity,” they emphasized in a statement.
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