In brief
On 8 March 2021, through Resolutions Nos. 50 and 51 (“Resolutions“) from the Nation’s Mining Secretary, more than 100 exploration companies and 33 mining services companies – indicated in Annex I of each of the Resolutions – have been preventively discharged from the Mining Investments Registry of Law No. 24,196. The preventive discharged was for one year. The companies that have been preventively discharged will be able to request reinstatement to the Mining Investment Registry in accordance with Section 4 of Resolution No. 118/2020, only if is not definitive.
Law No. 24,196 (“Law“) created a special regime to promote mining activity in Argentina, granting tax benefits and custom exemptions to exploration companies, mining operation and services that are registered in the Mining Investment Registry. The enrollment to the Registry is subject to the fulfilment of certain requirements and obligations.
For the purpose of updating the registration status of all enrollees, over a consultation of the Federal Tax Authority (FTA), companies whose tax IDs were inactive or discharged from more than two years as of 31 December 2019 were detected.
In such context, on 20 November 2020, through Resolution No. 118/2020, the Ministry of Productive Development, from the Mining’s Secretary, established the procedure of preventive discharge for one year – from the administrative act that that so provides – for human and legal persons registered in the Mining Investment Registry when the following conditions are met:
- Being informed by the FTA that the Unique Tax Identification Key (CUIT) of the enrolled has been inactive, discharged or disqualified in national taxes for two years as of 31 December 2019
- Not having an electronic seat constituted under Section 19 subparagraph b) and d) of the Decree No. 1,759/72
- Not having used the tax benefits provided in Section 21 of Law No. 24,196 (import of assets) or not having affected the assets brought under it, if used, or the end of its useful life can be presumed under Resolution No. 89, dated 24 October 2019
- Not having filed the tax affidavits in the last two fiscal years
The Resolutions shall enter into effect on 8 March 2021.
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