Investor Benefits

The following is a list of the benefits that your company will receive for investing in the Province of Misiones.

Provincial tax benefits

Law VIII No. 59 on the Promotion, Fostering, Establishment, and Authorization of local production activities covers and may benefit facilities that process raw materials from Misiones, generators of new production and/or service rendering technologies, and the corporations mentioned in Laws I – Nos. 143 and 145 (formerly Laws Nos. 4367 and 4391) as follows:

Tax Deferral: gross income tax (1st year 100%, 2nd year 100%, 3rd year 75%, 4th year 50%, 5th year 25%, 6th year 0%), basic real estate tax (1st year 100%, 2nd year 100%, 3rd year 100%, 4th year 100%, 5th year 100%, 6th year 0%), provincial automobile tax, for up to five years, without interest or adjustments. Payments begin on the 6th year, as the applicant may agree with the Tax Authority.

Stamp Tax Exemption: On the adoption of by-laws, articles of incorporation, trust agreements, and other incorporation agreements, in addition to their registration.

Law No. 3585 – Adherence to the National Law on Cultivated Forest Investments:

Exemption from Stamp Tax and any other provincial tax and/or rate on the following items: adoption of by-laws and execution of articles of incorporation, trust agreements, rules of management, and other instruments of incorporation, in addition to their registration, regardless of the entity’s legal type or its subsequent modification or any capital increases and/or issuance and release of shares, units of interest, stock or investment certificates, and any other debt or capital stock security resulting from the organization of the project approved under National Law No. 25,080.

Exemption of up to one hundred per cent (100%) from the Basic Real Estate Tax for surfaces effectively allocated to cultivated forests in projects approved within the framework of National Law No. 25,080 and surfaces allocated to basic infrastructure and natural environments where sufficiently evidenced that they are being used for the project.

Reduction of municipal rates to 0.5%.

Access to Financing

Fondo de Crédito Misiones (Misiones Credit Fund) http://www.fondomisiones.com.ar benefits sole proprietorships, partnerships, and validly incorporated companies with production projects that are either ongoing or pending execution in the Province of Misiones, provided those entities meet the requirements laid down under this program. Covered activities include primary production, industry, personal and professional services, industrial services, and trade.

For going concerns: Fixed Assets (up to 100% of the total credit—up to 80% for real estate repairs) and working capital (up to 30% of the total credit). The sum in Argentine pesos can range between ARS 30,000 and ARS 350,000 for all activities, except industry and production services, where the cap is ARS 650,000, and industry, with a ceiling of ARS 1,000,000. Interest rates will vary between 10% and 14%, depending on each category and requested amount.

For activities pending execution: Fixed Assets (up to 100% of the total credit—up to 80% for real estate repairs) and working capital (up to 50% of the total credit). For all activities, the financing cap is ARS 250,000 at a 12% interest rate, with a 6-month grace period and subsequently payable in 54 monthly installments.

Consejo Federal de Inversión (Federal Investment Council, CFI for its Spanish acronym): Effective April 25, 2017, new parameters were established for the Production Reactivation Line:

• The new cap for SMEs financing is ARS 2,500,000.
• Financing above ARS 2,000,000 will be granted only with a first mortgage in favor of the CFI, and businesses must submit evidence of continuous activity during the last three years.
• The new cap for Microenterprises financing is ARS 225,000.
• The cap with no mortgage requirement and with a subsidized rate has been increased by 50% and is now ARS 150,000. (The Emergency Line’s amount remains unaltered)
• The maximum amount allocated to Working Capital has been increased to ARS 900,000.
• Until now, companies with an equity ranging between ARS 340,000 and ARS 675,000 could receive up to ARS 170,000 in financing. The new range goes from ARS 450,000 to ARS 900,000 and the maximum financing has been accordingly increased to ARS 225,000.