foreign investors the SRL may entail tax
benefits in his or her country of origin.
Both alternatives need to appoint manag-
ers in the case of an S.A., a board of
directors, and the SRL shall appoint a
manager.
The trust could also be used as an
alternative vehicle. The investor would
place money in exchange of rights to
collect the results of their investments.
The investors will be appointed as ben-
eficiaries of the trust. The advantage of
the trust over other vehicles is that with
the trust the investors have the guarantee
that the funds can only be applied to the
specific project set forth under a trust
agreement. Likewise, the creditors of the
trustee are not entitled to access the as-
sets of the trust by virtue of any debts of
the trustee.
In general, when we cooperate with
an investor, the projects consist of
leasing and/or acquiring lands of good
quality in order to carry through their
agricultural exploitation.
Buenos Aires, south of Santa Fe and
Córdoba, are considered the best lands
in Argentina. Regarding the agricultural
exploitation, it is also important to men-
tion that due to new technology (seeds)
it is also possible to find farms in other
places within Argentina where an inves-
tor could commence his or her business
and see acceptable results.
fect the transfer of money in and out of
Argentina. Therefore, in each case, an
analysis of the mentioned regulation
must be made in order to ensure that the
total amount of the investment will be
available to be used in Argentina once
transferred, and that both the original
investment plus its return can eventually
be transferred abroad.
Money laundering is a criminal
offense in Argentina, and regulation is
continually applied in order to prevent it.
Therefore, it must be considered that the
ments and/or affidavits in connection
with the origin of the funds.
The applicable taxes will vary ac-
cording to the structure of the vehicle.
However, taxes which may apply to any
investment are the following:
minimum supposed income tax, per-
sonal assets, value added tax (as of
today the agriculture sector shall pay
this tax at a rate of 21 percent over its
purchases and receives 10.5 percent
of value added tax on its sales, gener-
ating a non-usable positive balance),
among others.
gross income tax (turnover tax), land
tax and stamp tax.
the risk factors of this activity. In any
agriculture activity, the investor should
analyze the:
agricultural exploitation depend very
much on climatic conditions, which
in some cases can be predicted, but
in others not. The climatic conditions
might reduce the productivity of the
land and may affect the production
process;
and the variation of international
prices of grain may adversely affect
the investments. Currently in Ar-
gentina there are two markets which
trade commodities: futures and op-
tions. Those are located in the cities
of Buenos Aires (MAT/BA) and Rosa-
rio (ROFEX). These markets provide
us with competitive prices without
incurring any unnecessary costs;
The Argentine Central Bank has
issued certain resolutions which
regulate and limit the flow of funds in
and out of the country.