During the past year, certain benefits for companies in the textile sector in Tierra del Fuego were reduced. The Government adjusted tax and customs exemptions for half of the companies involved through Decree 111/2025 published in the Official Bulletin. The distribution of mandatory contributions from the benefited companies was modified, allocating 60% to finance productive projects and 40% for investments in provincial and municipal infrastructure.
Regarding the financing of production, it was established that at least one-third of the funds must be allocated to investment projects outside of the current promotion regime. The funds designated for works must focus on productive development, competitiveness, and reducing logistics costs, with prior approval from the Executive Committee of the Fund for the Expansion of the Fuegian Productive Matrix.
It was clarified that funds cannot be allocated for current expenses in the Provincial Administration or in any dependency of the Public Sector. Companies adhering to the regime can allocate up to 40% of their mandatory monthly contribution to their own previously approved productive investment projects by the Executive Committee of the Fund.
Companies must inform their choice of fund use prior to its application and may change it annually. In the event of allocating funds to approved projects, companies will issue a debt certificate in favor of the Fund, which will be canceled through investment acts within the committed timeline of the project.
The Government argued that the changes were a way to ensure a clear distribution of resources and avoid ambiguous interpretations in their calculation. These adjustments do not alter the validity of the special tax and customs regime of Tierra del Fuego, which extends until the end of 2038 following its expansion in 2023.
