Modifications to the Large Investments Incentive Regime and new implementation rules

The following regulations were published on October 22, 2024:

1. Decree 940/2024 (“Decree 940”), which amends Decree 749/2024 (“Regulatory Decree”); and

2. Resolution 1074/2024 of the Ministry of Economy (“Resolution 1074”), which approves the “Procedures for the Implementation of the Large Investments Incentive Regime” (“RIGI”).

The RIGI was created by Law 27,742 (“Foundations Law”) and regulated by the Regulatory Decree (see our comments on these regulations here and here).

1. Decree 940

Decree 940 amends certain aspects of the Regulatory Decree, such as:

1. Capital goods destined to the realization of a RIGI Project are added as goods to be imported by suppliers adhered to the RIGI.

2. The Single Project Vehicle (the “SPV” or Vehículo de Proyecto Único) may request the voluntary withdrawal of the RIGI provided that it has not been notified of an infringement procedure with a final resolution.

3. The Tax for an Inclusive and Solidary Argentina (for its Spanish acronym, “Impuesto PAIS”) is suspended for the purchase of foreign currency destined to the payment of imports of capital goods made by the SPVs adhered to the RIGI.

2. Resolution 1074

Resolution 1074 establishes five procedures to adhere to the RIGI through the Trámites A Distancia (“TAD”) platform:

1. Adhesion procedure for SPVs.

2. Adhesion procedure for Strategic Long-Term Export Projects (“SLEP”).

3. Adhesion procedure for the Expansion of Pre-existing Projects.

4. Adhesion procedure for local suppliers; and

5. Procedure to request a voluntary withdrawal of the RIGI.

3. Term for the resolution of applications

The term for the Ministry of Economy to approve or reject an application of adhesion or cancellation is forty-five (45) business days. This term may be suspended if additional information is required from other agencies or from the applicant.

In case of rejection, the applicant may submit a new application up to two additional times in the same calendar year.

4. Adhesion procedure

The adhesion procedure includes the following stages:

1. Generation of an electronic docket with the Ministry of Economy.

2. Preliminary analysis of the feasibility of the Project.

3. Intervention of the Central Bank of Argentina and the Antitrust Agency, if necessary, which will temporarily suspend the procedure.

4. Recommendation of the Evaluation Committee for the approval or rejection of the adhesion.

5. Issuance of the Certificate of Adhesion to the RIGI for the approved Projects, allowing the SPVs to access the benefits and incentives.

5. Voluntary withdrawal

SPVs may withdrawal from the RIGI through the submission of a report explaining the reasons for their decision through the TAD platform.

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For additional information, please contact Nicolás Eliaschev, Javier Constanzó, Daiana Perrone, Milagros Piñeiro, Victoria Barrueco and/or Giuliana Manzolido.