The Government modified the industrial promotion regime of Tierra del Fuego

The Government modified the distribution of funds for the Productive development of Tierra del FuegoAntarctica and South Atlantic Islands, through a decree that adjusts the criteria for the application of resources from Tax regime Special of the province.

The measure was formalized this Thursday via the Decree 111/2025 Published in the Official Gazette, and seeks to ensure that the investments promoted through the Fund for the Expansion of the Fuegian Productive Matrix (FAMP-FUEGUINA) effectively contribute to the economic growth and the productive diversification of the region.

The decree also establishes how the resources of the Fund will be distributed:

Within this scheme, at least one third of the funds must be granted to companies that are not beneficiaries of the regime for the promotion of the Law No. 19,640with the aim of promoting a greater diversity of economic actors in the province.

While these modifications seek to guarantee a more efficient allocation of resources, they also generate uncertainty in companies that have historically depended on these benefits to sustain their activity.

In addition, the possibility that companies attached to the regime are up to 40 % of their mandatory contribution to own investment projects were introduced, provided that they are previously approved by the Fund Executive Committee. Companies that choose this option must issue a debt certificate in favor of the Fund, which will be canceled as compromised investments are executed. They may also advance investments, whose value will be adjusted by a coefficient determined by the Executive Committee.

The context of the measure

These changes in the regulations are produced in a context in which libertarian management has promoted a series of modifications in industrial promotion regimes. In September, the Government decided to take tax benefits to almost half of the textile companies registered in Tierra del Fuego, in line with its strategy to reduce tax exemptions.

At that time, the Ministry of Industry and Commerce of the Ministry of Economy reported that five companies were excluded from the textile sub session for not complying with the requirements established in Decree 594/23. As a consequence, they ceased to receive tax exemptions such as the elimination of the payment of profits, VAT and import rights.

It should be remembered that in 2021 the previous management had stipulated that the benefits of the textile sub session would win on December 31, 2023. However, the current government decided not to extend them to all companies, applying more strict criteria in the selection of beneficiaries.

With these measures, the Administration seeks to reformulate the economic promotion schemes in Tierra del Fuego, prioritizing strategic sectors and investments that contribute to the development of the province in the medium and long term.