ANNOUNCEMENT 05 Feb 2010In February 2010, the government of Argentina announced a changed incentive to localise business operations.
NUMBER OF INTERVENTIONS
- Law 26.457 (creating the regime): http://www.infoleg.gov.ar/infolegInternet/anexos/145000-149999/148397/norma.htm
- Decree 1857/2009 (implementing legislation): http://www.infoleg.gov.ar/infolegInternet/anexos/160000-164999/160791/norma.htm
- Resolution 11/2010 (implementing legislation - put into effect the regime): http://www.infoleg.gov.ar/infolegInternet/anexos/160000-164999/163984/norma.htm
- Ministry of Industry and Tourism webpage: http://www.industria.gov.ar/blog/2010/03/10/regimen-de-incentivo-a-la-inversion-local-para-la-fabricacion-de-motocicletas-y-motopartes/
On February 5, 2010, the Argentine Government passed implementing legislation that put into effect the 'Local-Investment Incentives Regime for Motorcycles and Motorcycle Parts Manufacturing', originally established in 2009 by Law 26.457 and Decree 1857/2009.
Local producers of motorcycles and certain motorcycle-parts will receive under the regime two types of benefits: (1) reductions of duties levied on imported inputs, ranging from 20 to 60 percent of current import-duty rates; and (2) tax credits on locally-produced inputs purchases.
In order to be eligible for the benefits, applicants have to pledge investments for at least US$ 1 Million in real state, facilities, machinery and development of local suppliers. Further, in order to continue to be eligible for the benefit, they have to gradually reduce the foreign content of their output, with a view to reaching a 30% ceiling in foreign content by 2015.