Mining 2025

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

• PEELPs: no export tax after two years of join - ing RIGI. • Reorganisation of companies to establish an SPV: the setting up of branches, reorganisa - tions, and the transfer of assets for the pur - pose of creating the SPV shall be treated as a tax-free reorganisation. • Import duties: import of consumption goods such as capital goods, spares, parts, and consumables is exempt from import, sta - tistics and verification of destination duties, and of any withholding, collection, advance regime or withholding of national or local tax - es. These goods shall be used in the project throughout their useful life, or until the end of the stability period, or the termination of the Project, or until the Competent Authority grants a permit to release the goods, which - ever occurs first, and shall only be transfer - able. • Prohibition to impose import and export restrictions. • Accounting records in US dollars: SPVs may choose to keep their accounting records and financial statements in US dollars. Foreign exchange regime incentives Exemption from repatriation and settlement obligations of export proceeds in the foreign exchange market SPVs under RIGI shall be exempted from the obligation to repatriate and settle foreign exchange proceeds from their exports in the following percentages and under the following conditions: • 20% after two years have passed since the start-up date of the SPV; • 40% after three years have passed since the start-up date of the SPV; and • 100% after four years have passed since the start-up date of the SPV;

These funds will be freely available and the SPVs shall not be subject to any repatriation or set - tlement obligations. In the case of PEELP this gradual liberation happens one year earlier. Inapplicability of restrictions on the free availability of foreign currency • Prior restrictions or authorisations to access the foreign exchange market for the payment of foreign financial indebtedness principal and/or the repatriation of investments shall not apply to the SPV. However, the Central Bank may impose the following conditions: (a) that the payment of financial indebted - ness principal and the repatriation of investments have been originated by capital contributions or loans previ - ously entered and settled in the foreign exchange market by the SPV; and (b) that such access does not exceed the amount of foreign currency received and settled in the foreign exchange market for foreign loans and/or capital contributions or other direct investments by the SPV. • Restrictions or authorisations to access the foreign exchange market for the payment of profits, dividends or interest to non-residents shall not apply to the SPV to the extent that such profits, dividends and interest have been generated from capital contributions or other direct investments, or from loans or other financial indebtedness with foreign entities previously entered and settled in the foreign exchange market by the SPV. In this case, the limitation on access with respect to the amount entered and settled does not apply. • In order to pay off commercial and/or finan - cial debts with foreign entities, to repay principal and interests on loans, to distribute dividends and profits, and/or to repatriate direct investments from non-resident entities, exchange regulations may require VPUs to

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