Tax benefits for investing: the Investment Promotion Law (COMAP)

Many believe big tax benefits are only for large investors. Not so: the investment promotion law rewards those who invest in their business, even small ones. If you'll buy equipment, expand or create jobs, this is worth knowing.

What it is

The regime comes from Law 16.906 and is administered by COMAP (the Application Commission). The idea is simple: you present an investment project, it's assessed on certain indicators (jobs, exports, etc.) and, if it's declared promoted, you access tax benefits.

The benefit: up to 100% IRAE

The main incentive is an exemption from the business income tax:

Per the MEF:

«permitirá que las empresas cuyos proyectos de inversión sean declarados promovidos accedan a una exoneración de IRAE por un porcentaje de la inversión de hasta el 100%»

In English: it will let companies whose investment projects are declared promoted access an IRAE exemption of a percentage of the investment of up to 100%

Beyond IRAE, promoted projects usually include exemption of Wealth Tax on the project's assets, of duties and taxes on importing capital goods, and a VAT credit for local purchases. Together, it can be very significant savings.

Extra advantage for SMEs

And it's not only for the big: micro and small enterprises get a bonus:

For the smaller ones:

«A las micro y pequeñas empresas se les otorgarán 15 puntos porcentuales adicionales de beneficio del Impuesto a las Rentas de las Actividades Económicas (IRAE) y dos años extra para su utilización»

In English: Micro and small enterprises will be granted 15 additional percentage points of IRAE benefit and two extra years to use it

The new decree (329/025)

The regime was updated. The new decree applies from early 2026, with a renewed indicator matrix:

On the effective date:

«El Decreto Nº 329/025 comenzará a regir a partir del 1º de febrero»

In English: Decree No. 329/025 will take effect as of 1 February

How to access it

You present the project to COMAP, usually with an accountant's or adviser's support, detailing the investment and the indicators you commit to meet. The benefit is granted based on those commitments. The official investor's guide explains the regime in detail:

At a glance

In short: investing in your business can exempt a good part of IRAE (up to 100%) and other taxes, with a bonus for SMEs, under the COMAP regime. If you're planning an investment, consider presenting it — with an accountant. Verify the current decree and requirements.