On March 14, 2023, General Resolution No. 5333/2023 of the Argentine Tax Authorities (hereinafter referred to as “AFIP“) was published in the Official Gazette, implementing the Fiscal Registry for Mining Companies (hereinafter referred to as the “Registry“). The Registry is intended for (i) entities engaged in mining activities under the Mining Code and/or Law No. 24,196;
(ii) suppliers to mining companies; (iii) service companies registered as beneficiaries under Law No. 24,196, providing services to mining producers; (iv) mining producers providing services to third parties; (v) suppliers to companies providing project management services to the mining sector; and (vi) holders of exclusive permits for exploration or prospecting in a specific area.
Entities must register through the AFIP website in one of the following sections: mining companies, suppliers to mining companies, and exploration or prospecting permit holders.
It should be noted that the Registry establishes withholding regimes for Value Added Tax and Income Tax, applicable to mining companies registered as taxpayers for these taxes, as well as companies providing project management services to the mining sector. Additionally, it identifies suppliers to mining companies and suppliers to companies providing project management services to the mining sector as subjects subject to withholding.
The withholding rates for Value Added Tax are 10.5% or 21%, depending on the registration in the Registry. As for the withholding regime for Income Tax, the rates are 20%, 30%, or 35%, depending on the registration in Income Tax and the Registry.
Furthermore, the Registry establishes a semi-annual reporting regime that holders of exploration or prospecting rights granted by mining authorities must comply with. The first submission must be made within 30 consecutive days from the registration in the Registry.
Finally, it should be noted that the Registry came into effect on April 1, 2023, and according to the established schedule, registration can be carried out until May 10. The withholding regime for Value Added Tax and Income Tax will come into effect on May 16.
