Monday, January 17

The Government improves incentives for investments of more than US $ 500 million

According to sources linked to the foreign trade sector consulted by Ámbito, the government decree would also have a political objective, which would be to balance measures that restrict exports in the agricultural sector, as is the case of meats, or that of a potential increase in withholdings. In this way, the government shows that it encourages exports of Manufactures of Industrial Origin (MOI), which are of higher value.

To enter the regime it is necessary to present a project of at least US $ 100 million. That opens the tap of the Central to the company for 20% of the exports generated from the new business, with a cap of 25% of the gross amount of foreign exchange entered the country. From now on, for initiatives between US $ 500 million and US $ 999 million, the free use of up to 40% will be allowed and for those of US $ 1 billion onwards, up to 60%.

“The measure focuses on investments that require a maturing period and differential financing for the implementation of the project,” the Ministry of Economy explained in a note. This is because although a company can make a strong investment now, until the new business starts up and generates dollars, at least a year may pass, in which the conditions of access to the Single Free Exchange Market (MULC ) may vary, especially if Argentina makes an agreement with the IMF and this allows it to return to voluntary markets. The biggest incentive that companies have to invest in Argentina is that the local cost valued in dollars is cheap compared to other countries.

Economy indicated that the regime intends “to give predictability to direct foreign investment or national investment financed with external credit, destined to increase exports.” In this sense, he pointed out that “it will allow to increase exports, create more employment, strengthen the competitiveness of various economic sectors, promote sustainable and equitable economic growth and promote the environmental sustainability of the country, the provinces and the different regions.

It was recalled that the funds generated with exports may be applied to the payment of capital and interest on liabilities abroad, profits and dividends from closed and audited balance sheets, and repatriation of direct investments by non-residents ”.

“If the export charges are not applied immediately to the intended uses, the funds may be deposited until their use in accounts abroad of Argentine financial entities and / or in local accounts in foreign currency in Argentine banks” indicates the measurement.

The initiative is aimed at investments in the industrial forestry, agro-industrial, hydrocarbon, mining and manufacturing industries and for new projects or for those already established but seeking to expand their productive capacity in order to export.

The director of the Center for Studies for Foreign Trade of the XXI Century, Miguel Ponce, who advises foreign trade companies, considered that the regime “has a minimal impact” and said that the Government “should put restrictions on it to be able to export more.”