This incentive can be claimed by companies that are engaged in the production, processing or manufacturing for export of goods within the following specific catalog of industries:
- Products intended for human and animal nutrition
- Fertilizers and agrochemicals
- Raw materials for the pharmaceutical industry and pharmaceutical preparations
- Electronic components, such as simple or loaded cards, circuits, capacitors, resistors, connectors and semiconductors, coils, transformers, harnesses and modems for computers and telephones
- Clock machinery, measuring, control and navigation instruments, and electronic medical equipment for medical use
- Batteries, accumulators, electrical conduction cables, plugs, contacts, fuses and accessories for electrical installations
- Gasoline, hybrid and alternative fuel engines for cars, vans and trucks
- Electrical and electronic equipment, steering systems, suspension, brakes, transmission systems, seats, interior accessories and die-cast metal parts, for automobiles, vans, trucks, trains, ships and aircraft
- Internal combustion engines, turbines and transmissions, for aircraft
- Non-electronic equipment and devices for medical, dental and laboratory use, disposable material for medical use and optical items for ophthalmic use
- Cinematographic works
Companies may choose to apply the tax incentive if they estimate that during the fiscal years of 2023 and 2024, the amount of revenue from exports of goods that are within the catalog of activities will represent at least 50% of their total revenue in each fiscal year.
The tax incentive allows the "accelerated depreciation" of new fixed assets, acquired from 12 October 2023 through 31 December 2024.
The "accelerated depreciation" amount will be obtained by applying the preferential depreciation rates established in the Decree, instead of those indicated in the Income Tax Law (the preferential percentages vary depending on the type of good and the industry in which they are used and range from 56% to 89%).
In more detail
Additionally, the tax profit determined for the purposes of income tax prepayments may be reduced with the accelerated depreciation amount proportional to the corresponding month.
Moreover, the Decree grants an additional deduction to companies that are dedicated to the industries included in the Decree consisting of 25% of the increase in expenses incurred for training workers. For this purpose, the increase will be calculated as the difference between the expense incurred for training in the relevant fiscal year and the average expense incurred for training in fiscal years 2020, 2021 and 2022.
To apply both tax incentives, taxpayers must submit a notice opting for the application of the tax incentives no later than thirty calendar days immediately following the month in which the incentives are claimed for the first time. Taxpayers can only apply the tax incentives established in the Decree if they submit the notices in a timely manner.
The SAT has not yet published the official forms for submitting this notice, but we will keep you informed of any developments related to this and other details.
At Baker McKenzie we offer you our team of lawyers and professionals for the analysis of adequate compliance of your operations with the applicable legislation. If you would like any further advice regarding any of the topics described above, as well as to resolve any other inquiry you may have, please do not hesitate to contact us.
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