Description
It consists of the refund of the General Sales Tax also called Value Added Tax (VAT) transferred or paid in import operations and/or local acquisition of intermediate goods, capital goods, services and construction contracts that are used directly in the execution of the Investment Commitment of a Project, provided that it is in a pre-productive stage equal to or greater than two years.
REQUIREMENTS FOR THE BENEFIT
Natural or legal persons wishing to be included in the Regime must provide PROINVERSIÓN with evidence of compliance with the following requirements:
| To carry out a Project in any sector of economic activity generating third category income. | |
| The Project must have an investment commitment of not less than USD 5,000,000.00 (Five Million and 00/100 United States Dollars), not including VAT, as a total investment amount including the sum of all sections, stages or similar, if any. (With the exception of the agricultural sector, which does not have a minimum investment amount). | |
| The Project must have a pre-productive stage equal to or greater than two years, counted from the start date of the investment schedule. |
* If the Project is based on contracts or agreements or authorizations signed or granted by the State under sectoral regulations, the pre-productive stage begins on the date of execution of the corresponding contract, agreement or granting of the corresponding authorization.
A Ministerial Resolution by the relevant sector shall approve the natural or legal persons qualifying for the benefit of the Regime, as well as the goods, services and construction contracts that shall grant the benefit for each project.
BENEFITS OF THE REGIME
| It generates liquidity for the investor in the pre-operational stage, alleviating its financial cost. | |
| It stimulates the economy by promoting the development of new investments (job creation and the projection of tax revenues). |
DEFINITIONS TO CONSIDER
Work or economic activity that the Beneficiary undertakes to carry out.
Natural or legal person that is in the pre-productive stage of a project and has the Ministerial Resolution qualifying it for benefiting from the Regime.
Investment amount to be executed as from the date of the request for benefiting from the Regime. In the event that, as of said date, the pre-productive stage of the Project has started; or as of the start date of said stage contained in the investment schedule of the Project, in the event that it starts after the date of request.
In the case of projects supported by sector contracts, the period from the date of execution of the contract or agreement with the State or the granting of authorization in accordance with sector regulations until the date prior to the start of production operations.
In the case of specific projects, the period from the date of commencement of the investment schedule to the date prior to the commencement of production operations.
Central, regional or local government entity that, within the framework of its competencies, is responsible for entering into and subscribing, on behalf of the central, regional or local government, contracts or agreements or granting authorizations for the concession or execution of works, investment projects, provision of services and other development options.
If the execution of contracts or agreements or the granting of authorizations is not applicable, the central government entity that exercises control over the economic activity referred to in the Project shall be considered the sector.
OPERATIONS
When the Beneficiary of the Regime makes the first export of a good or service, or the first transfer of a good or service levied with the VAT, resulting from the exploitation of the Project; as well as when they receive any income levied with VAT that constitutes the system of recovery of the investments in the project, including the costs, operation expenses or maintenance carried out.In Projects executed in stages, sections or similar, the start of productive operations shall be verified as for each stage, section or similar, as determined in the investment schedule.
LEGAL GROUNDS
