Gacetillas
 
 
 
 
 
PRESS RELEASE No. 2548 December 9, 2009
 
 
AFIP IMPLEMENTED TAX BENEFITS FOR FARM PRODUCERS IN EMERGENCY OR DISASTER AREAS
 
Today the head of AFIP, Ricardo Echegaray, signed the resolution that suspends tax executory processes for affected producers;
Postponed payment of income and wealth taxes and of the special contribution on the capital of cooperatives;
Deduction on income tax for producers who were forced to sell livestock;
30 days to request tax benefits (in provinces that have declared farm emergency or disaster);
The measure covers 10 provinces, including the main cereal and oil producers.


The head of the Federal Administration of Public Revenues (AFIP), Ricardo Echegaray, established tax benefits for producers whose farms are in emergency or disaster areas

Today Echegaray signed General Resolution No. 2723 which lists the tax benefits and announced that “this measure suspends tax executory processes, defers payments of income and wealth taxes and of the special contribution on the capital of cooperatives”.

The measure is also for producers who are single tax payers. For them the benefit lies in the tax component. The tax reduction is up to 50% for people who are in the emergency area and up to 75% for those in the disaster area.

In addition, AFIP has stipulated that those producers who were forced to sell livestock – cattle, sheep, goats or swine – may have a deduction in income tax.

The resolution is applicable in the provinces of Buenos Aires, Córdoba, Salta, San Juan, Santa Fe, Santiago del Estero, La Pampa, Catamarca, Santa Cruz and Corrientes. In all, out of the country´s 180,000,000 hectares, 104,300,000 hectares are in the condition of farm emergency. This represents 57.7% of farm establishments.

In order to access the benefits producers must file the provincial certificate that identifies them and their premises – which must be within the area of emergency or disaster. Also, they must report whether they are owners or lessees of farm establishments.

In addition, producers must file a sworn statement showing that the affected establishment is their main activity. Law No. 26509 defines the main activity as the one that generates more than 50% of the total turnover of the last business year prior to the period of emergency or disaster.

Echegaray concluded that “the measure adopted through AFIP implies a huge tax effort for the National State” and that “it is another sign to show that the administration headed by President Cristina Fernández has supported, supports and will keep supporting national production”.