Mining 2025

ARGENTINA Law and Practice Contributed by: Sebastián P. Vedoya, Sergio Arbeleche and Dolores Cattaneo, Bruchou & Funes de Rioja

Municipal Taxes Duties and fees on municipal taxes are grouped into various categories, the configuration and amount of which depend on the jurisdiction involved. Double-Tax Treaties Argentina has treaties to avoid double taxation in force with the following countries: Australia, Belgium, Bolivia, Brazil, Canada, Chile, China, Denmark, Finland, France (which amendment protocol is pending ratification), Germany, Italy, Mexico, Netherlands, Norway, Qatar, Russia, Spain, Sweden, Switzerland, Turkey, the United Arab Emirates, the United Kingdom and Uruguay (through an information exchange treaty that contains clauses for the avoidance of double taxation). Agreements entered into with Japan, Luxembourg and Austria are not yet in force as of the date of this document, pending compli - ance of certain requirements under the corre - sponding domestic laws. Through the application of these treaties, a non- resident, among other benefits, may be able to considerably reduce IT withheld at source. In general terms, treaties to avoid double taxation follow the OECD and UN Model Convention guidelines (except the treaty with Bolivia, which follows the Andean Model, and the treaty with Uruguay which combines information exchange provisions with clauses for the avoidance of double taxation). 4.2 Tax Incentives for Mining Investors and Projects The promotional legislation applicable to mining investment in Argentina includes the following benefits, arising from the MIL: • mining projects are granted with tax and foreign-exchange regulations stability for a

term of 30 years at national, provincial and municipal level; • the amounts invested in prospecting, explora - tion and feasibility studies can be deducted from income tax purposes (double deduc - tion), in addition to the deduction allowed under the ITL; • the costs of any exploration project may be deducted against the profits resulting from another successful project; • early return of VAT tax credits resulting from exploration works; • accelerated amortisation of capital goods, with a method to allocate accelerated amor - tisation intended to prevent losses from becoming statute-barred; • assets imported to be included in the min - ing production process are duty free (import certificate required); and • cap on royalties payable to the provincial government (3% of the production value over pithead value). It is also worth stating that some provinces have created mechanisms to have a more direct par - ticipation in the exploitation of certain minerals that have been considered to be strategic. Such is the case of lithium in Jujuy, which declared lithium to be a strategic resource. Provincial state-owned mining companies have been cre - ated to hold mining rights, with the purpose of developing them in association with private investors. Under Title VII of Law 27,742, the RIGI regime was created (Incentive Regime for Large Invest - ments), which includes mining and which pro - vides for projects qualifying in the regime a rel - evant reduction of federal tax burden, a limitation on the type of FX regulations restrictions that the central bank may impose, a strong 30-year regulatory, tax and customs duties stability

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