Eleven textile companies registered to benefit from the tax advantages provided by the system, but five did not meet the requirements.
The Government, through the Ministry of Commerce, excluded five textile companies from the Tierra del Fuego regime and will not be able to access the tax benefits it grants. This was done through Decree 594/23 published this Tuesday in the Official Gazette.
The decree contemplates the extension of the Textile Subregime of Tierra del Fuego until the year 2028. Eleven textile companies registered to enjoy the tax advantages provided by the system. Among the main benefits are exemptions from Income Tax, Value Added Tax, import duties, Internal Taxes and other national taxes that may be created in the future.
Of the eleven registered companies, Five did not comply with the obligations necessary to join the regime. One of the omitted requirements is the accreditation of origin, a procedure that certifies that the manufactured fabrics went through the production process regulated in the sub-regime.
What requirements are needed to join the Tierra del Fuego Regime?
In order to be able to join the extension of the special tax and customs regimeevery company must comply with the requirements set forth in decree 594/23, which are: the express waiver of future lawsuits against the National Government; the waiver of future lawsuits against the Provincial Government; not having any pending legal proceedings for this reason; the accreditation of the origin of their products in the last year and the accreditation of compliance with tax and social security obligations.
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What will happen to the tax benefits that companies already enjoyed?
Companies excluded for failing to meet at least one of these conditions will have to return to the State the benefit granted since January 1, 2024. So far, the tax benefits of the textile industry of the Tierra del Fuego sub-regime represent a approximate annual cost of 20 billion pesos. The five companies that were removed from the workforce represent 80% of the total production volume.
Some of the companies targeted by the Ministry of Commerce are Barpla, Australtex, Fabrisur and Sueño Fueguino, a measure that affects 500 employees, generating uncertainty in the sector.
Source: Ambito
