The Large Investment Incentive Regime (RIGI, in Spanish), included in Argentinian Basic Law, wants to attract foreign investment to important sectors, such as mining, gas, oil, agroindustry, infrastructure, forest, energy and technology. The main objective is to offer some customs and tax benefits for those projects with investments of between USD 210.3 million and USD 946.37 million. 

You can access RIGI if you comply with determined requirements, like encouraging exportations and promoting hiring. Limited and anonymous societies can apply for, whereas those that have fiscal debts or a corruption background. Moreover, next step is creating a “Special Purpose Vehicle” (VPU, in Spanish), as a foreign or local titular, which manages a qualified project as a Large Investment on established sectors.  

Tax benefits in Argentina 

Numerous incentives will be available in accounting, customs, tax and exchange rate regime materia. First, referred to tax regime, it must be highlighted the dividends and profits return: Net Income from these will be taxed at 7%; 0% if they are distributed after three years of the fiscal year. About Accelerated Amortization of Investment, real estate will be returned as a 2 consecutive payment, in addition to 60% reduction on useful life of infrastructure works. Moreover, aliquot is established in a 25% maximum and VAT could be paid to suppliers or directly ARCA (ex-AFIP) thorugh Tax Credit Certificates. Tax losses won’t have a limit and after year 5 can be transferred to third parties. Furthermore, about tax on debits and credits in bank accounts, VPU will compute 100% of the amounts paid and received as an income tax credit. Finally, the government permits deductions of interest and exchange differences over profits or added to the losses of the VPU which come from the financing of the project promoted by the RIGI 

Accounting, customs and exchange rate regime fiscal exemptions 

Customs benefits are attractive because companies are exempt from import duties, statistics and verification of destination, among others, besides export rights after three years of joining the RIGI. Moreover, VPY may import and export freely goods and services aimed at construction, operation and project development prohibitions or quantitative restrictions. 

The last two incentives are related to accounting and exchange rate regime, as accounting records and financial statements can be kept in US dollars following IFRS. In conclusion, project exports are excluded from the Income obligation and negotiation in the exchange market: 20% reduction from the first years and 40% from the second year. Lately, funds will be freely available. 

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