ANNOUNCEMENT 24 Nov 2011
The Government of Argentina established the rules for the accelerated depreciation scheme in income tax for investments related to the biodiesel industry.
NUMBER OF INTERVENTIONS
Federal Public Income Administration. Administración General de Ingresos Públicos. Resolución General 2972. http://servicios.infoleg.gob.ar/infolegInternet/anexos/175000-179999/175729/norma.htm
On November 24, 2010, the Argentinian Federal Public Income Administration enacted General Resolution 2972 concerning the rules of the accelerated depreciation scheme in income tax for investments related to the biodiesel industry.
The new regime allows all subjects holding biodiesel production projects owned by Argentinian companies or public entities to practice the accelerated amortisation of the income tax corresponding to new capital assets that can be amortised -except for automobiles, or to infrastructure works -except for civil works.
The new law excludes from this benefits those who have already enjoyed the benefit of accreditation or early repayment of the value-added tax in relation to the same approved project; have financed VAT by the regime stipulated in the Law 24.402; are disabled to develop the activity or some of the plants involved in the approved project are disabled to develop the activity; companies whose majority shareholders are not Argentinian; have
tax, social security or customs debts; are in bankruptcy.
Other requirements to enjoy this special regime are to be registered in the Oil Companies - Companies and/or Distributors Companies Section of the Argentinian business registration as a biodiesel producing or mixing company; to have the biofuels production project and its expenditures approved by the Secretary of Energy; every invoice must clearly state the total amount and the date of the purchase or investment;and goods enjoying this regime must remain part of the assets of the project for at least three years.