Industrial Parks

Investment Promotion and Protection Law No. 16,906, with its current regulatory decree 002/012. Foreign investment is treated by law the same way as national investment.

Law 17,574 – provides important incentives for companies that wish to establish themselves in them, exemptions and specific tax credits.- / Decree 524/055.

Law 19,784, Promotion and development of Industrial Parks and Scientific-Technological Parks.

“an industrial park is an urbanized land subdivided into plots, according to a general plan, equipped with roads, means of transportation and public services, which may or may not have built factories that sometimes have common services and facilities and sometimes do not, and which is intended for the use of an industrial community.”

Regulations

Companies installed in IP can obtain both the general benefits of the investment as well as the specific benefits of the IP.

According to LAW 16,906, the foreign investor enjoys the same incentives as the local investor, there is no discrimination from a tax point of view or restrictions on the transfer of profits abroad.

Decrees 455/007,008/012 and 143/018 update Law 16,906, allowing the exemption of income tax on economic activities (IRAE) between 20% and 100% of the amount invested, depending on the project. The net worth tax is also exempt from movable property of fixed assets and civil works and VAT is recovered from purchases of materials and services for the latter.- This law also exempts the importation of movable property from fixed assets from taxes or fees, declared non-competitive by the DNI.

Law 19,784 stimulates industrial value chains, through investment, value addition, research, innovation, knowledge generation, technological progress and the creation of jobs, in a spatial environment of promotion of associativity and generation of synergies, and seeking the geographical decentralization of economic activities.

IRAE exemption for up to 100% of the amount actually invested.

Net Worth tax exemption

Exemption from fees and taxes, included in the VALUE ADDED TAX (VAT), on the import of fixed asset goods intended for the installation’s operations, as well as fixed asset goods and materials intended for the civil works corresponding to the installer, as long as they do not compete with the national industry.

Decree 79/20 Regulates Law 19,784, which indicates that if benefits are granted in relation to the IRAE, the amount of the tax exempted, the period to enjoy the exemption will increase by 15%. They will be able to access this benefit.

Industrial activities.

They provide services such as storage operations, conditioning, selection, classification, fractionation, assembly, disassembly, manipulation or mixing of merchandise or raw materials, linked to the activities carried out in the park.

Solar thermal and/or photovoltaic energy generation activities framed in promotional measures of the executive branch.

Waste recovery and use activities.

Decree 524/005 – Regulates Law 17,547. Article 6 = In addition to industrial operations, the following activities may be carried out:

1- Storage operations
2- Conditioning
3- Selection
4- Classification
5- Fractionation
6- Assembly
7- Disassembly
8- Handling or mixing of merchandise or raw materials, provided that they are exclusively associated with the industrial activities installed in the parks.
9- Retail trade is prohibited.

Merchandise term = Without limits.

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