The Government presented the Super RIGI: it will last five years and the minimum investment will be US$ 1,000 million

According to the text of the law, it is an initiative aimed at attracting large-scale investments in technological sectors and activities considered new for the Argentine economy. The message that accompanies the articles establishes that the objective is to attract projects linked to industries such as artificial intelligence, semiconductors, advanced biotechnology and digital infrastructure.

The text establishes that the regime will be intended exclusively for projects that involve the development of activities that “are not developed, produced or provided in the country, or whose degree of development is experimental or pilotIn addition, it clarifies that expansions, modernizations or conversions of existing facilities will be excluded.

To access the scheme, investments must be channeled through “Single Project Vehicles” (VPU), companies created exclusively for each venture. The project establishes a minimum investment floor of US$ 1,000 million per initiative and requires executing at least 20% of that amount during the first two years since accession.

Among the main benefits, the project provides a reduced rate of 15% on Income Tax For the adhered projects, a regime of accelerated amortization and the possibility of deducting losses without a time limit. The RIGI, as a comparison, lowered profits by up to 25%.

It also contemplates a reduction in the burden on dividends and profitswhich would drop to 3.5% after four years from joining the regime. For this point, the RIGI established a cut of up to 7%.

The initiative also incorporates customs and exchange benefitss. On the one hand, it exempts goods linked to the project and products exported under the regime from import and export duties.

On the other hand, it enables a progressive scheme of free availability of currency from exports: 20% in the first year from the first export, 40% in the second and 100% in the third.

In terms of legal stability, the project guarantees a period of 30 years of regulatory stability in tax matterscustoms, exchange and social security. It also provides that disputes between the State and investors may be submitted to international arbitration.

The text establishes that provinces and municipalities must expressly adhere to the regime so that projects located in their territories can access national benefits. In addition, it points out that any local regulation that limits or alters the provided incentives may be considered “absolutely null and void.”

“The accumulated experience and dialogue with productive and financial actors have shown the need to design an overcoming instrument, specifically oriented to genuinely new economic activities in the country,” the Government argued about the need to create a regime overcoming the RIGI.

The project, if approved by Congress, will then need the support of each province and even municipalities in which a project of this type will be carried out.

“The project requires, as a condition for provincial accession, specific commitments regarding fiscal moderation and regulatory predictability, so that national incentives are not neutralized by incompatible local charges,” the project stated.

Among the sectors that the Government mentioned as candidates to be part of the Super RIGI are the lithium value chain and battery manufacturing, green or low-emission hydrogen projects, onshore LNG plants, small and medium-sized nuclear reactors (SMR), production of solar panels and wind turbines.

It will also include 100% electric vehicles, new petrochemical developments, products for the aerospace industry, the uranium value chain, industrial products derived from fishing and potassium or phosphorus fertilizers.