Mining 2025

ARGENTINA Trends and Developments Contributed by: Sergio D. Arbeleche and Sebastián P. Vedoya, Bruchou & Funes de Rioja

Effects of Adherence to the RIGI Once a submission is approved: • rights are retroactive to the date of submis - sion; • obligations calculated as of the date following the notification of approval of the application require adherence, as does the investment plan; • the acquisition of rights under the RIGI shall be considered vested rights, similar to owner - ship and, consequently, may not be infringed or modified by subsequent regulations (even if RIGI was abrogated in Congress), and shall remain in force as long as the SPV does not incur in any cause of termination of the RIGI; • any transfer of shares, quotas or equity inter - ests of the SPVs in adherence to the RIGI, as well as the intention to use them as collateral, does not require prior authorisation from the Competent Authority. Control The Competent Authority is the Ministry of Econ - omy, with the assistance of a RIGI council and a RIGI co-ordination unit, and shall control: • compliance with MIA deadline; • compliance with 40% of MIA within the first two years; and • due and exclusive use of the incentives by the SPV regarding the Adhered Project. Causes of Termination The following are causes of termination: • termination of the Single Project at the end of its useful life; • declaration of bankruptcy of the SPV; • voluntary deregistration requested by the SPV, as of the date of approval by the Enforcement Authority; or

• termination as a penalty for infringement of the RIGI. Main Benefits Tax and customs incentives • Income tax rate reduction: applicable tax rate of 25% (versus current rate of 35%). • Accelerated depreciation: option of the depreciation regime for those assets involved in the investment. • Thin capitalisation rules: no restrictions on deduction of interests. • Accumulated tax loss carry forwards: tax loss carry forwards do not prescribe and after five years, if not absorbed, they may be trans- ferred to third parties. • Income tax on dividends and profits: tax rate shall be 7%. However, for dividends and profits after seven years, the tax rate shall be 3,5%. • PEELPs: incentives and special rules in connection with income tax for payments to foreign beneficiaries. • VAT: regarding VAT on imports and pur - chases, constructions, definitive imports of fixed assets, investments in infrastructure works and/or services, the SPVs may pay VAT (including perceptions) to their suppliers or to the Tax Authority by delivering Tax Credit Cer - tificates (TCCs) up to the limit of the total net amount of such transactions. If suppliers who receive the TCCs and who request the refund or transfer of TCC balances to third parties, do not get it within a period of three months, they shall be allowed to transfer them to third parties without prior approval from the tax authority. • Tax on debits and credits: 100% may be used as tax credit for income tax. • Export/withholding duties: no export tax after three years.

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