10 keys to the new tax benefits regime that can help the countryside

The RIMI is a new benefits regime, designed so that certain companies that invest in Argentina have tax advantages.

It does not aim at financial or speculative investments. It is designed for real investments: machinery, facilities, works and goods directly linked to producing.

Because the field needs to invest constantly to remain competitive. Many times it is necessary to improve facilities, incorporate technology, protect crops or make the use of energy and water more efficient.

The new regime expressly mentions investments closely linked to agricultural activitysomething that makes it especially interesting for producers and companies in the sector.

Among the investments highlighted by the standard are: irrigation equipmenthigh quality goods energy efficiency, las anti-hail meshes and certain livestock goods (animals).

Translated into practice: it can be useful for anyone who wants to improve irrigation, protect crops, modernize an establishment, lower energy costs or strengthen a livestock activity.

The main attraction is that the investment can generate a tax relief faster than usual.

On the one hand, it allows amortize faster in Income Tax. This means that the cost of the investment impacts the tax first and helps pay less at the beginningwhich is when the disbursement weighs the most.

On the other hand, also allows VAT to be recovered faster linked to these investments, which generally imply a large balance in favor, which can greatly improve the company’s cash flow.

Normally, when a company purchases a fixed asset, it cannot deduct the entire expense at once from Profit. He deducts it over several years.

With RIMI, in many cases this discount is accelerated. And in goods especially relevant to agriculture, such as irrigation equipment, anti-hail nets, highly energy efficient goods or certain livestock, amortization could be done in a single fee.

For a producer, that can mean something simple but important: that the investment “hurts less” from the fiscal point of view in the first years.

The regime is designed to micro, small and medium-sized companies, up to the Medium Tranche 2 category. That is, it is not designed for megaprojects, but for companies of a more intermediate scale.

That is why it can be attractive to many companies. family farms, medium producers, regional economies and agroindustries that are usually left out of large promotional schemes.

Yes. The law sets minimum investment amounts depending on the size of the company. That means that Not any minor purchase automatically enters.

However, productive investments made in irrigation systems and/or equipment, highly energy efficient goods, anti-hail nets for the agricultural sector and in livestock goods (amortizable as male reproductives, or pure females by crossbreeding or pedigree), will obtain the benefit regardless of the amount of the investment involved.

Yes. The company must be in order and not have certain debts fiscal, pension or criminal problems linked to tax, customs or exchange matters.

Simply put: to take advantage of the regime you must have the house in order.

Yes. If the good on which the benefit was earned is sold too soon, the incentive may fall.

In that case, the benefits used, plus interest and even penalties, could be claimed. That’s why It is not a regime designed to buy and sell quicklybut for real investments that remain affected by production.

If you are thinking about investing in the coming years, it is worth analyzing whether you qualify as an SME, what type of asset you want to acquire, whether that investment could be covered by the regime and how much tax savings it could represent.

The key is not to look at the issue as something purely legal or distant. For many cases it can be a concrete opportunity to make a productive improvement with a lighter fiscal cost.

In summary, if an agricultural company has to put money into improving its field, its technology or its productive structure, the RIMI can help make that investment more bearable from a tax perspective.

Used well, it can become a concrete tool to invest more efficiently, making the State return part of the investment through accelerated amortization or a VAT refund (in practice it would be a kind of subsidy on the purchase).