Through Resolution No. 3692/2014 the Federal Tax Administration (“FTA”) sets forth new information programs for mining companies and their suppliers, which entered into force on December 1st, 2014. In addition, this resolution also introduced new tax withholding systems, which entered into force on January 1st, 2015.

Below we describe the most significant aspects:

i. Register of Mining Companies:
Mining companies must require the registration in the Register of Mining Companies through the FTA’s website. Please note that shale oil and gas companies are exempted.

The inscription in this register is a requirement for enjoying the benefits established under the Mining Promotion Scheme, and for requiring Value Added Tax (“VAT”) refunds for exports. In the latter, the inscription shall be required before filing the refund petition. If not, it will be analyzed under the “Refund subject to Control” system.

ii. Mining Companies’ Supplier Register:

Mining companies’ suppliers are obliged to register within the Mining Companies’ Supplier Register, including:

a) Services companies registered within Law No. 24.196 as mining companies’ suppliers;
b) Mining companies that render services to other companies, including those registered within the “Mining Companies tax Register”;
c) Suppliers of companies that render management services to mining projects.
The information required must be submitted through the FTA’s website.

iii. Exploration Right Holders Register:
The holder of an exploration permit that has the exclusive right to explore within an area is obligated to register within the “Exploration Right Holders Register”. The registration form must be filled through the FTA’s website.

Once registered, certain information should be reported to the FTA on regular basis, as the holding permits and the localization of the project. Please note that the first submission shall be made within the following 15 days after the entry into force of the information system.

The submission of the information shall be made before January 10 and July 10 of each year, notwithstanding when the registration was made. Also, new and revoked permits shall be reported.

iv. Tax Withholding system:
Resolution No. 3692/2014 sets a new withholding system for transactions made by mining companies’ suppliers. Under this system, mining companies and management service companies for mining projects shall withhold VAT and Income Tax for the payments done to their suppliers.

Additionally, the above mentioned resolution requires to the acquirers of exploration permits to make an Income Tax withholding regarding the payments done to their owners.