ARGENTINA Trends and Developments Contributed by: Sergio D. Arbeleche and Sebastián P. Vedoya, Bruchou & Funes de Rioja
Bruchou & Funes de Rioja Ing. Enrique Butty 275 12th floor C1001AFA Buenos Aires Argentina Tel: +54 115 171 2300 Email: estudio@bruchoufunes.com Web: bruchoufunes.com
Introduction In terms of issues that are currently of note in the market and are worth being considered for people or companies who wish to do business in Argentina, putting aside the material change that President Milei’s pro-business administration is creating which we assume is publicly known, we are obliged to focus on the new Incentive Regime for Large-Scale Investments (RIGI) that was enacted on 8 July 2024, and included under Title VII of Federal Congress Law 27,742. Incentive Regime for Large-Scale Investments (RIGI) The RIGI is a promotional regime that has no precedent in Argentina, which has never had a promotional regime like this before. This is not only because of the numerous tax, customs, FX regulations, stability and foreign arbitration incentives, but also because the regime includes a series of mechanisms as a mindful counter - measure against Argentina’s past conduct of not respecting the rights, terms and conditions offered by other promotional regimes.
In this regard RIGI, among other things: • provides great liberty to the investor to design the investment to be proposed. Accordingly, the main obligations relate with fulfilling mini - mum investment amounts under the terms and conditions designed by the investor; • grants the benefits right from the start. Once admitted, all rights are acquired retroactively to the date when the submission to qualify for RIGI was made and long before the invest - ment obligations kick in. In case of dropping out of RIGI due to breach by the investor of the conditions to be kept in the regime, there are no retroactive penalties with respect to incentives and benefits used prior to the definitive ruling of termination under RIGI. Only in the case of fraud would the penalties apply retroactively, but even in that case only up to the date of the breach. RIGI reverts the burden of proof against the gov - ernment. In other regimes in terms of tax discus - sions, investors had to pay under administra - tive order and then make a judicial claim. In this case, investors do not pay until there is judicial final ruling;
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