The Government Adjusts Tierra Del Fuego's Tax Regime: What the Changes Are

The national Government implemented changes in the special fiscal and customs regime of Tierra del Fuego, Antarctica and South Atlantic Islands with the aim of providing greater predictability to investments.

The update was made official with decree 111/2025, published in the Official Gazette, and modifies decree 727/2021.

Changes in the distribution of contributions

The new regulation redefines the destination of mandatory contributions to the Fund for the Expansion of the Fuegian Productive Matrix  (FAMP-Fueguina) of the companies benefiting from the regime:

60% to productive projects, science, technology, and human resource training, with restrictions to prevent direct benefits to companies already included in the regime.

40% to provincial, municipal, or national infrastructure works for productive development, without allowing its use for current expenses.

Additionally, a provision was incorporated that allows companies to use up to 40% of their mandatory monthly contribution in their own investment projects, with prior authorization from the FAMP-Fueguina Executive Committee.

"The value of these investments will be adjusted by a coefficient defined by the Committee, in order to recognize their real value at the time they are computed as a contribution", the decree states.

Objective of the measure

The Government justified the changes by stating that it seeks to optimize the execution of resources and avoid erroneous interpretations about their distribution.

Meanwhile, it highlighted the positive impact of the regime, which has allowed the establishment of industrial companies, generating employment and economic development both in Tierra del Fuego and in the rest of the country.

Extension of the regime and exclusion of textile companies

The regime was extended in 2023 until 2028, although in some sectors the benefits were limited, such as in the case of the textile sector. In September 2024, the Government excluded five textile companies from the tax benefit system for not complying with the obligations of the promotion regime.

The companies were excluded for failing to meet the requirements of decree 594/23, including:

• Proof of the origin of their products.
• Express waiver of future lawsuits  against the national and provincial Government.
• No ongoing litigation related to the regime.
• Compliance with tax and social security obligations.

Of the 11 companies registered in the sub-regime, five failed to meet these conditions and were left out of the system of fiscal and customs benefits.

Impact on the local industry

The modifications aim to strengthen the province's productive matrix and ensure that funds are used efficiently.

At the same time, the exclusion of non-compliant companies reinforces the demand for transparency and compliance with requirements in accessing tax benefits.