On 1 October 2026, the Ministry of Finance and Prices published Resolution 200 in Official Gazette No. 81 Ordinaria dated 1 October 2026. The resolution, signed by the Minister on 29 August 2026, authorizes entities acquiring machinery, food production technologies, and industrial food processing equipment to apply accelerated depreciation and amortization rates for tangible and intangible fixed assets, exceeding the standard rates established in current legislation. These accelerated rates are considered deductible for Corporate Income Tax (Impuesto sobre Utilidades) purposes, effectively reducing the taxable base for investing entities. The measure targets the agricultural and food processing sectors, aiming to modernize production capacity and enhance food security.
The resolution builds on the government’s 2026 economic transformation agenda, which prioritizes domestic food production and import substitution. By allowing faster cost recovery through accelerated depreciation, the policy improves cash flow for investors and lowers the effective tax rate on new capital expenditures. The deduction is available for assets acquired after the resolution’s effective date and applies to both state-owned enterprises and non-state economic actors, including cooperatives and private firms. The Ministry clarified that the accelerated rates must be justified by technical feasibility studies and approved by the relevant sectoral ministry, ensuring that the incentive is directed toward genuine productivity enhancements. The resolution specifies that the accelerated depreciation rates cannot exceed twice the standard annual rate for each asset class, as defined in the Ministry’s Resolution 114 of 2025 on fixed asset depreciation. For example, if the standard rate for industrial machinery is 10% per year, the accelerated rate may be set at up to 20%. The deduction is available only for assets placed in service after 1 September 2026 and must be claimed in the tax period corresponding to the acquisition. Entities must submit a technical feasibility study to the Ministry of Agriculture or the Ministry of Food Industry, as applicable, demonstrating the asset’s contribution to production capacity expansion or technological upgrading. The Ministry of Finance and Prices will publish a list of pre-approved asset categories to streamline the approval process.
Key Takeaways
- Enhanced Capital Allowances for Strategic Sectors: Eligible entities can now depreciate qualifying machinery and technology at rates higher than the statutory maximum, accelerating tax deductions and improving after-tax returns on investment. This is particularly significant for the food processing industry, where capital intensity is high and modernization is critical.
- Broad Applicability Across Economic Actors: The incentive applies to all taxpayers subject to Corporate Income Tax, including state enterprises, private companies, and cooperatives, provided they acquire assets for food production or industrial processing. This inclusivity supports the government’s goal of expanding the non-state sector’s role in the economy.
- Conditional Implementation and Oversight: The accelerated rates require prior technical justification and sectoral approval, preventing misuse. The Ministry will monitor the impact on tax revenues and investment flows, with potential adjustments based on outcomes. Taxpayers must maintain detailed asset records and depreciation schedules for audit purposes.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement