The Argentine Executive Branch approved the regulations.
Through Decree 749/2024, the Argentine Executive Branch approved the regulations under the RIGI (the incentive regime for large investments or听R茅gimen de Incentivo para Grandes Inversiones,听as per Law 27,742).听 It is the new regulatory framework designed to attract large-scale investments, especially in sectors such as, Mining, Oil & Gas, Energy, Technology, and Infrastructure, among others). Read听TaxNewsFlash
In the oil & gas sector, the Executive Branch used its power to increase the amount of the minimum required investment (to USD 600 million or USD 300 million, depending on the case) and limited the benefits of the RIGI to certain subsectors including offshore exploration and production, exploitation and production of gas intended for export, the creation of infrastructure transportation and storage of oil & gas and natural gas liquid separation plants.听As a result, onshore oil & gas exploration and production is excluded unless connected with export of gas. The regulations also included the petrochemical industry within the oil & gas sector.听
For the industrial forestry, infrastructure, mining, energy, technology, tourism and steel sectors, the minimum investment requirement of USD 200 million was maintained, and a very broad definition of the activities included in the sectors that can apply to the RIGI was adopted.
There is also a clear intention to simplify the procedures so that a VPU can qualify in the RIGI, for example, through an expansion of the cases in which a "dedicated branch" can be created.
Overall, the regulations confirm the unprecedented incentives and conditions of predictability, stability, and legal certainty as provided by Law 27,742 to encourage large long-term domestic and foreign investments in the above-mentioned sectors.
Read the听
Read an August 2024 report (Spanish) prepared by the 乐鱼(Leyu)体育官网 member firm in Argentina
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For more information, contact a 乐鱼(Leyu)体育官网 tax professional in Argentina:
Gonzalo Brest | gbrest@kpmg.com.ar
Hern谩n Caire | hcaire@kpmg.com.ar
Juan Mart铆n Jovanovich | mjovanovich@kpmg.com.ar
Hern谩n Mandar谩 | hmandara@kpmg.com.ar