The government has enacted the law extending recycling for construction by one year

The Government promulgated this Monday the Argentine law of investment, construction and production incentiveswhich extends the building money laundering regime by one year, with the intention of adding approximately $ 4,500 million to the Central Bank’s coffers.

It did so with decree 522/2022 published in the Official Gazette, with the signatures of Alberto Fernández; the Chief of Staff, Juan Luis Manzur; and the Minister of Economy, Sergio Massa. This regulation will allow the tax relief launched in 2021 to be extended until 2023.

The initiative proposes a series of measures aimed at “tempting” those who have dollars (or pesos) outside the formal system. There he raises a voluntary declaration of possession of domestic and foreign currency, which will be used for construction. The funds would be reached by a special tax which in a first phase will be 5%.

Once the first 90 days have passed, it will be 10% and then 20% in a third stage. Thus, the overall duration is one year, much longer than last year’s scheme and which was in effect for less than three months.

The confirmation was made on Saturday by Massa through a tweet thread. In his virtual announcement, the minister stressed that “this tax relief measure is essential to relaunch the growth and financing of one of the country’s most flourishing industries”.

“When the construction works, the businesses around it work, jobs are created, the economy moves and Argentina grows,” he stressed.

The rule had been promoted by Massa himself during his time as president of the Chamber of Deputies. “The construction issue, apart from the fact that many do not give it importance, can represent an additional private investment of between 4,000 and 4,500 million dollars. It is very important that it be approved”, said the current one in May. minister.

At the time he was one of the promoters of the initiative together with the head of the PRO block, Cristian Ritondo. The proposal was approved with 35 votes in favor and 26 against, and managed to prevail over the rejection of the senators of Together for change.

In its first version, money laundering only managed to outsource around $ 200 million.significantly less than the US $ 5,000 million expected at the time of submission of the proposal.

From social plans and programs to quality formal work

It also establishes Chapter II of the law a so-called “bridge to employment”with the “transformation of plans, social programs and social security benefits into formal quality work”.

In this sense, article 2 establishes that “the holders of current national social and employment programs – or those to be established in the future – which are contracts or contracts under the Argentine federal scheme of incentives for construction and access to housing, law 27.613, and who comply with the prescribed training and training courses, may continue to receive the benefits and benefits granted by said programs for the period provided for in article 1, under the terms and conditions established by law enforcement authorities.

“The Ministry of Labor, Employment and Social Security and the Ministry of Social Development will establish guidelines for determining the origin and extent of the compatibility of registered work with national social and employment programs that grant monetary benefits to individuals and groups. a situation of social vulnerability, including workers in municipal cooperatives and social organizations ”, concludes the document.

Among the “complementary regulations”, he also stated that “the Federal Administration of Public Revenue (AFIP) and the Central Bank of the Argentine Republic will regulate this law within fifteen (15) calendar days and will dictate the complementary and interpretative regulations necessary to implement the conditions provided for by this law.

The Autonomous City of Buenos Aires and the provinces have also been “invited to establish exemptions from stamp duty and encourage their municipalities to grant tax incentives under this regime”.

Finally, it was clarified that “the provisions of this law will enter into force on the day of its publication in the Official Gazette of the Argentine Republic”.

IS