ARGENTINA Trends and Developments Contributed by: Sergio D. Arbeleche and Sebastián P. Vedoya, Bruchou & Funes de Rioja
use and exhaust liquid external assets held or accumulated abroad, as per RIGI incen - tives, before accessing the foreign exchange market for payment purposes. • Prepayments are admitted. • Lenders can subrogate in the SPV FX rights. Tax, customs and regulatory stability This stability is effective for a period of 30 years as from the adherence date. All taxes effective as of the date of joining the RIGI, as modified by the benefits under RIGI, shall apply to the SPV, granting the SPV the right to refuse the payment of a different or higher tax, which, if applicable, also confers the right to automatically offset the tax against other taxes, in all cases during the tax year or thereafter. New taxes or increases (including the derogation of exemptions in force at the adherence date) shall not apply to the SPV. This does not prevent the SPV from eventually benefiting from the elimination or reduction of taxes of the general regime which may be more favourable than the RIGI. The same stability applies to FX incentive regula - Notwithstanding the provisions of investment protection treaties, RIGI establishes its own regime for the settlement of disputes, contro - versies and/or rights violations. After a period of 60 days without resolution, the SPV (or its foreign partners or shareholders, in tions arising from RIGI. International arbitration
the case of the last two alternatives) may submit the dispute to arbitration at the discretion of the SPV, in accordance with: • the PCA Arbitration Rules issued in 2012; • the Rules of Arbitration of the International Chamber of Commerce; • the Convention on the Settlement of Invest - ment Disputes between States and Nationals of Other States (dated 18 March 1965); or • if applicable, the ICSID Arbitration Rules (Additional Facility). The NEP may establish specific arbitration rules in relation to a conflict resolution process for each Project. All RIGI incentives are included in the definition of protected investment. The existence of an arbitration process will not affect the continuity of the enjoyment of the incentives by the applicant. Interactions with Provinces and Municipalities The provinces, the City of Buenos Aires, and municipalities are invited to join the RIGI. Adher - ence implies they will not increase their own provincial and municipal taxes in force as of 31 December 2023. The provinces and municipalities not adhering may not perform acts or issue regulations that may alter the incentives under RIGI.
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