The initiative includes tax benefits, relief from export duties for industrial goods, and early refund of VAT.
He Ministry of Economy announced that this week he will present at the Congress a bill of Investment and Employment Promotion with the aim of “promoting the growth of small, medium and large companies“, one of the sectors most affected by the recession.
As specified by the portfolio directed by Luis Caputothe initiative will seek to “enhance the industrial exports, formalize employment, boost the agricultural sector and generate profound changes in labor matters”.
The announcement was made by the secretary of Production Coordination of the Ministry of Economy, Juan Pazowithin the framework of the 30th Summit of the Argentine Industrial Union (UIA)where he explained that this proposal will be a “complement” to the Incentive Regime for Large Investments (RIGI).
What does the business incentive project consist of?
They explained that the project includes tax benefits, relief from export duties for industrial goods, early refund of VAT. It will be a support for all the investments that exceed the threshold of 150 thousand dollars in the case of micro companies; 600 thousand dollars in the small ones; 3.5 million dollars in companies in section 1; 9 million dollars in the companies in section 2; and 30 million in the rest.
On the other hand, the initiative also regulates the labor regime and seeks to promote formal employment through the labor updating of the Employment Contract Law as contemplated in the DNU 70/23 and the “modernization of the Agrarian Work Regime.” Furthermore, it provides for the reduction of employer contributions about incremental jobsand a tax credit bonus for companies that hire workers from the national, provincial and municipal public sector.
Finally, it seeks to repeal the National Program to Support Young Entrepreneurship and the promotion regime for modern biotechnology and nanotechnology, created by Law 26270, which grants tax benefits for research projects and production of goods in the area.
Source: Ambito
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