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• Investment Promotion Law: early VAT return and/or accelerated depreciation for capital goods and infrastructure projects.

• 0% tariff on imports of capital goods.

• 0% tariff on imports of goods which are part of a large investment project.

• Others: FONTAR, FONSOFT, SEPyME programs, plans to foster employment, and export promotion plans.

• Additionally, provincial governments offer exemptions from provincial taxes for a determined period of time:

1. Gross income
2. Stamp taxes
3. Property tax

• Offer financial support for infrastructure investments and purchase of relevant equipment and subsidized rates for public utilities.

Benefits for Hiring New Employees

• A company hiring a beneficiary of the Employment and Training Insurance (ETI) could deduct from the worker’s net salary the amount received in the form of ETI.

• A reduction in employer’s contributions given that those will be calculated based on the salary actually paid by the company.

Program for More and Better Employment (YPMBE)

• A company hiring a beneficiary of the Young’s Program for More and Better Employment (YPMBE) could deduct from the worker’s net salary an amount of AR$ 400 which will be paid by the ML in the form of direct payment for a period of 6 months.

Benefits for Training People

• A company providing training to a beneficiary of the Employment and Training Insurance (ETI) could deduct from the worker’s net salary the amount of AR$ 400 to be paid directly by the ML. In addition, the ML will reimburse AR$ 150 for 4 hours/trainer in a monthly basis and AR$225 for 6 hours/trainer/month during the whole training period.

Fiscal Credit

• A company may obtain up to a AR$ 300,000 fiscal credit (Fiscal Credit Certificates) when incurring expenses related to strengthening the skills of employed and unemployed workers. In case of a small and medium size enterprise (SME), the fiscal credit would amount to 8% of the total amount paid in annual wages and salaries, including employers’ contributions.

For large enterprises, the fiscal credit will amount to 8 per thousand of the total amount paid in annual wages and salaries, including employers’ contributions.

Training Qualifying for the Benefits

• Professional Training.
• Basic Concepts in Information Systems.
• Certification of primary, secondary, tertiary, and superior education programs.
• Evaluation and Certification of specific skills.
• On the job training.

Software Industry Promotion Regime

• Ten year fiscal stability including national direct taxes, duties and special contributions, meaning a company’s aggregate national tax liability will not be increased over the mandated period once it is accepted into the program.
• Non-refundable and non-transferable fiscal credit for employer social security contributions paid (up to 70%), which may be used to pay federal tax liabilities, excluding the corporate income tax (CIT).
• A 60% reduction of a company’s CIT liability during each fiscal period when incurred expenses relate to R&D and/or quality certification processes and/or export of software in the terms and conditions to be set forth.
• Exemption from import duties on hardware and IT components.

Biofuels Promotion Regime

• Early reimbursement of VAT and/or accelerated depreciation allowance for capital goods and infrastructure.
• Exemption on the minimum presumed income tax (tax paid on a company’s estimated annual revenue and that can be deducted at time of the CIT submission) for the first three years.
• Exemption on the hydro infrastructure tax and the liquid fuels and natural gas tax.

Automotive and Autoparts Promotion Regime

• Cash reimbursement: Cash reimbursement equivalent to 8% of the value of the locally produced parts being purchased. This percentage will be reduced to 7% in the second year of production and to 6% in the third year.
• The “Flex” Mechanism: Argentina and Brazil’s ”flex” mechanism, which determines the level of bilateral trade flows that are tariff-exempt, was modified from US$ 2.6 of Brazilian imports for every US$ of Argentine exports to the current level of US$ 1.95. Tariffs will apply when this level is exceeded. The Common External Tariff (CET) was maintained between 14 and 16%.
• Trade with Mexico: In 2006, Argentina and Mexico eliminated all bilateral trade barriers in automobile trade. Furthermore, in June 2006 Argentina and Mexico eradicated hundreds of tariff items in the autoparts sector.