The Ministry of Industry and Commerce (MIC) approved 11 investment requests worth 11.64 million dollars in the month of March 2022.
The Minister of Industry and Commerce (MIC), Luis Alberto Castiglioni, through the Investment Council, approved in Session 3, in March of this year, 11 applications for benefits of Law No. 60/90 “Fiscal Incentives Regime for the Investment of Capital of National and Foreign Origin”, for a value of 11.64 million dollars, the result of the promotion of both national and foreign investment and of an economic system based on free trade.
The approved projects will allow the creation of 113 jobs directly, mostly from foreign investment, highlighting the investments originating in Panama, Argentina, Italy, Spain, Scotland and Uruguay. In turn, 5 Departments of the country will benefit from these investments, which are: Central, Itapuá, Alto Paraná, Cordillera, and the Capital of the Country.
A total of 9 of the 11 approved projects correspond to the industrial sector with a total investment of 11.03 million USD, among which the manufacturing activities of pharmaceutical products, polypropylene bags and fabrics, fertilizer production, among others. others. Also, projects in the agricultural sector, and mining and quarrying were approved.
Fiscal benefits
The tax benefits granted under Law No. 60/90 are intended for the exemption of: Customs tax and VAT for the importation of machinery and equipment. Likewise, nationally produced capital goods are also covered by Law No. 60/90, with VAT exemption for the local purchase of machinery and equipment manufactured in the country.
When the investment exceeds US$ 5 million, it has the following benefits: Total exemption from taxes that affect dividends and profits from approved projects, for a term of up to ten (10) years, counted from of the start-up of the project; In the event that the amount of financing comes from abroad, the payment of taxes levied on remittances and payments abroad in respect of interest, commissions and capital thereof, will be exempt for the agreed term.
Law No. 60/90 is a tax incentive law for capital investment of national and foreign origin, which grants tax benefits to productive investments and services. The body in charge of studying and analyzing the investment projects presented is the Investment Council chaired by the Ministry of Industry and Commerce (MIC), and made up of 7 institutions, 5 from the public sector and 2 from the private sector. Tax benefits are granted through bi-ministerial resolutions endorsed by the heads of the MIC and the Ministry of Finance.
Objectives of the Law
The purpose of this Law is to promote and increase capital investments of national and/or foreign origin. For this purpose, fiscal benefits are granted to natural and legal persons residing in the country, whose investments are made in accordance with the economic and social policy of the National Government whose objective is: The increase in the production of goods and services ; The creation of permanent job sources; The promotion of exports and the substitution of imports, and the incorporation of technologies that allow increased productive efficiency and enable greater and better use of raw materials, labor and national energy resources.
