Super RIGI: Promotion of Large Investments in New Industries

The bill submitted by the Executive Branch, called the Incentive Regime for Large Investments in New Industries (Super RIGI), seeks to complement the Incentive Regime for Large Investments (RIGI) established by Law 27742, to position Argentina as a competitive destination for innovation, technology, and export-oriented production industries.

Scope of the regime

The regime would apply to projects carried out through a Single Project Entity (VPU) for industrial, technologic, or service activities connected with physical or digital infrastructure that are not currently developed in Argentina or that require an experimental or pilot stage.
The bill establishes a minimum investment of USD 1 billion in computable assets to access the Super RIGI. This investment must be made within two years of adhesion to the regime, with at least 20% to be disbursed during the first year.

Main incentives

Tax incentives

The main benefits under the bill include:

•    Reduction of the income tax rate to 15% on the VPU’s income.
•    Option to apply accelerated depreciation to assets and infrastructure.
•    Possibility to use tax losses without time limitation, and to transfer them to third parties after five years.
•    Reduction of the withholding tax rate on dividend distributions from 7% to 3.5% after four years.
•    Elimination of the gross-up on payments abroad.
•    Temporary exclusion from the limitations applicable to interest deductions during the first five years.
•    Neutralization of VAT on CAPEX through tax credit certificates.
•    Possibility to credit 100% of the tax on debits and credits in bank accounts against income tax.
•    Prohibition on the provinces and the City of Buenos Aires from applying a turnover tax rate higher than 0.5%.
•    Full exemption from stamp tax.
•    Prohibition on the provinces, the City of Buenos Aires, and municipalities from applying royalties or administrative fees to VPUs.
•    Limitation on municipalities applying municipal fees whose taxable base is determined by reference to sales, gross income, or similar parameters.

The bill also provides for a special customs regime for imports connected with approved projects.

Customs incentives

•    Full exemption from import duties on project assets.
•    Full exemption from export duties.
Social security incentives
•    Reduced 10% rate for employer social security contributions on new employment relationships, applicable only to employees hired after adhering to the regime.

Foreign exchange incentives

The bill provides for a progressive free availability scheme for foreign currency proceeds from exports:

•    20% after one year from the first export.
•    40% after two years.
•    100% after three years.

Super RIGI also guarantees access to the foreign exchange market for payment of financing, dividends, and repatriation of investments, subject to certain conditions.

Legal stability

Projects admitted to the regime would benefit from tax, customs, social security, and foreign exchange stability for 30 years as from adhesion.

The bill also includes protections against measures restricting exports, imports, access to the foreign exchange market or the operation of the projects.

Provincial adhesion and dispute resolution

The bill provides that provinces must adhere to the regime for projects located within their jurisdictions to access its benefits. Adhering jurisdictions would assume local tax stability commitments for approved projects.
In addition, the bill provides that, if a dispute between the Federal Government and a VPU cannot be settled amicably within 60 calendar days as from its notice, the dispute may be submitted to international arbitration. At the VPU’s choice, the arbitration may be conducted under the Arbitration Rules of the Permanent Court of Arbitration (PCA), the Arbitration Rules of the International Chamber of Commerce (ICC)—excluding the expedited procedure—or the ICSID Convention of 1965 or, as applicable, the ICSID Additional Facility Rules.

Except for ICSID arbitrations, the seat of arbitration will be determined by the arbitral tribunal under the applicable rules and must be located outside Argentina and in a country that is a party to the 1958 New York Convention.

The bill also provides that the tribunal will be composed of three arbitrators, none of whom may be a national of Argentina or of the State of origin of the majority shareholder of the VPU, and that the arbitration will be conducted in Spanish, except in certain cases initiated by foreign partners or shareholders, where it may be conducted in Spanish or English.

Final remarks

The Super RIGI bill reflects the Federal Government’s intention to complement the investment promotion scheme introduced in 2024 and attract large-scale industrial and technology projects. Its content may change during the legislative process before Congress.