Law 27,742 and Decree 749/2024 regulate the Incentive Regime for Large Investments (RIGI) in Argentina. The RIGI is a regime that promotes investments in strategic sectors of the country.

Some of the RIGI’s priority objectives include:

a) To encourage large national and foreign investments in the Argentine Republic in order to ensure the country’s prosperity;

b) To develop and strengthen the competitiveness of various economic sectors;

c) To increase the exports of goods and services abroad related to the activities developed under the RIGI;

d) To favor the creation of employment;

e) To create a regime for large investments that meet the requirements of the RIGI, providing certainty and legal security.

Tax incentives.

1. Income Tax
2. Rate: A special rate of 25% will be applied, without scales.
3. Depreciations: Depreciations may be applied.

a) Using the general regime established by the Income Tax Law according to the estimated useful life of each asset; or

b) A special regime that provides for accelerated depreciation: it is foreseen for certain assets in two annual installments.

• Tax Loss:

a) They may be deducted from taxable income without a time limit;

b) If not absorbed after 5 years, they may be transferred to third parties;

c) The amounts will be updated based on the variation of the Wholesale Price Index (IPIM).

• Dividends and Profits: The distribution will be taxed at a rate of 7%. After 7 years from the date of adherence to the RIGI, this rate will be reduced to 3.5%.

• II. Value Added Tax (VAT).

• Certificado de Crédito Fiscal: Se podrá pagar el IVA a sus proveedores, o a ARCA en el caso de importaciones de bienes, a través de la entrega de Certificados de Crédito Fiscal, cuando provenga de facturas por compra de bienes de uso.

• Proveedores: los créditos por los certificados que reciban de las empresas adheridas al R.I.G.I. tendrán para ellos el tratamiento de saldo a favor de libre disponibilidad., por lo que podrán usarlos para pagar sus impuestos o solicitar la devolución.

III. Other Tax Benefits (among others):

• The Bank Debit and Credit Tax: 100% of the amounts paid and/or received may be applied as a credit against the Income Tax.

• Exemption from Import Duties on capital goods, inputs, and merchandise necessary for the project, exempt from customs taxes.

• Exemption from Customs Fees: certain customs fees applicable to the importation of goods related to the project are eliminated or reduced.

• Exemption from export duties after 3 years and, in the case of Strategic Long-Term Exports, after 2 years.

By Edgardo Stampone, Partner of Tax at Auren Argentina