Decree No. 785/2020: cut in mining export rights from 12% to 8% until December 31, 2021
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Mining Law Department Report | Decree No. 785/2020: cut in mining export rights from 12% to 8% until December 31, 2021
Decree No. 785/2020 sets, until December 31, 2021, the rate of mining export duties at eight percent (8%) for the tariff positions of the Mercosur Common Nomenclature (N.C.M.) listed in its Annex (the “Decree”).
The purpose of the Decree is to regulate Law No. 27,541, Section 52, which establishes a cap for export rights corresponding to the mining industry -mainly by adjusting the rate applicable to the established cap-. Thus, the export duty for certain goods is reduced from 12% to 8% until December 31, 2021.
Under Law No. 22.415 (Customs Code), Section 755, and its amendments, the Federal Executive Branch was empowered to amend the established export duties.
The Decree is issued in order to provide predictability and certainty, with a clear sense of tax progressiveness.
The reasons behind the Decree can be found in the fact that both fiscal solvency and the development of the mining sector are complementary objectives, and in the understanding that investment will generate the fiscal resources that will allow the aforementioned solvency to be achieved and also compensate the existing asymmetries in the productive sector.
The Decree underlines that it is necessary to continue analyzing the existing structural gaps in the sector, with the firm purpose of achieving greater equity, progressiveness, and tax inclusion compatible with the development of Argentina’s mining potential.
Under Section 1, the Decree fixes until December 31, 2021, an export duty of eight percent (8%) for the export of goods included in the tariff positions of N.C.M., according to the details set out in the Annex of the Decree.
Pursuant to Section 2 revokes the provisions of Decree No. 1126 dated December 29, 2017 and Decree No. 793 dated September 3, 2018, in relation to the tariff positions approved by the Decree, Section 1.
Should you require any further information on this matter, please do not hesitate to contact us.
Sincerely,
Marcos Moreno Hueyo
Dolores Reyes