Regulatory Framework

A Promoted Mining Industry

Mine prospecting and exploitation is benefited with a long list of tax incentives, which increases the economic performance of the business.

A 30-year period of fiscal stability as from the date of filing the feasibility survey (Mining Investment Law nº 24.196);

The total amount of money invested in prospecting costs and other works to determine the technical-economic feasibility of a project, can be deducted from the calculation of: income tax (Mining Investment Law);

Profits obtained from mine contributions and mining rights, as capital stock, are classified as tax-exempt income; (Mining Investment Law);

Capitalization of up to 50% of the valuation of economically exploitable mineral reserves (Mining Investment Law);

Machinery, constructions, vehicles and infrastructure are redeemable and can be written off within a 3-year period. The losses of a fast redemption (when not used in its totality) can be transferred to the following fiscal year (Mining Investment Law);

Exemption of payment of assets tax as from the current fiscal year at the same time of enrolment in the Investments Program for Mining Activity (Mining Investment Law);

Exemption of payments of import fees or any other fee, special tax, correlative customs duty or statistic tax, due to the introduction of capital goods, special equipment or their constituent parts and necessary supplies used in the mining activity (Mining Investment Law);

The provinces shall not charge as royalty, more than 3% over the “mine entrance” value of the extracted minerals (Mining Investment Law);

The companies shall establish the annual amount of special contribution aimed at preventing and making up for the environmental alterations that the mining activity may cause. Such contribution shall be considered as a charge deductible from the determination of the income tax, up to a total amount equivalent to 5% of the operative costs of extraction and profits (Mining Investment Law);

Elimination of provincial and municipal tax-burdens which may affect the mining activity (Federal Mining Agreement – Law nº 24.228);

Elimination of stamp tax for all legally binding acts related to prospecting, exploration, exploitation and profits from mining substances, with the exception of solid, liquid and gaseous hydrocarbons (Federal Mining Agreement);

Financing and in advance VAT (Value-added Tax) return aimed at the operations of definitive purchase or importation of new capital goods and towards investments carried out to develop infrastructure of mining work (Financing for VAT payment – Law nº 24.402);

Exemption of payment of the minimum presumed income tax (Tax Reform Law nº 25.063);

Reimbursement of the exportation through Patagonian ports, to the south of River Colorado (Law nº 23.018);

Exemption of payment of liquid fuels tax (Decree nº 377/98);

Exemption of payment of check's tax, which corresponds to accounts opened under the name of subjects mentioned in Law nº 24.196 (Decree nº 613/01);

Unrestricted disposal of currencies and funds obtained through their exportations. Mining industry is the only sector exempted from the obligation of liquidating such funds in the country (Decree nº753/04).