Provinces’ Adhesion to the RIGI: Scope and Current Status

Law 27742 invites the provinces, the City of Buenos Aires, and the municipalities to adhere to the Incentive Regime for Large Investments (RIGI) and to issue the regulations necessary to establish procedures consistent with the purposes of the law.
 

The Law also establishes certain limitations for local jurisdictions that adhere.
 

1. The Law provides that they may not impose new local taxes on the single project entities (VPU), except for the fees for services actually rendered. A new local tax will be considered to exist when a “new taxable event” is created with respect to those existing by December 31, 2023, when a new taxable event is created with respect to those existing by December 31, 2023. This also applies when the taxable event, the taxable base, the rate, the deductions, the exemptions, and/or reliefs, and/or any other aspect of the taxes existing at that date are modified, when in the facts this implies a higher tax burden.
    
2. The Law also establishes that fees for services rendered, existing or to be created, may not exceed the specific cost of the service effectively rendered to the individual subjects considered. A fee will be deemed to exceed the specific cost of the service effectively rendered when its taxable base is determined based on sales, gross income, profits, or similar parameters.
    
3. Local taxes (even existing ones) cannot be levied on transactions, transfers, sales, leases, services, or any other economic relation between the VPU formed by a joint venture or other type of association contract and its members.  The same rule applies to the relation between a dedicated branch and the incorporating company.
    
4. Local tax collection schemes will not apply and may not be established for imports of goods by an adhered VPU.

Any rule, law, or action that breaches these rules will be considered a violation of national interests and will be declared null and void.

In line with this, provinces are at different stages of adherence to the RIGI. While several provinces have already adhered, others have submitted bills for consideration.
 

1. Provinces that have joined the RIGI:

• Catamarca: Law 5863
• Chaco: Law 4086
• Chubut: Law IX-171
• Cordoba: Law 10997
• Corrientes: Law 6694
• Entre Rios: Law 11162/2024
• Jujuy: Law 6409
• Mendoza: Law 9567
• Neuquen: Law 3491
• Rio Negro: Law 5724
• Salta: Law 8451
• San Juan: Law 2671-I
• San Luis: Law VIII - 1135/2024
• Santa Cruz: Law 3912
• Santa Fe: adhesion confirmed by the local government.
• Tucuman: Law 9803

2. Provinces with bills presented to their legislatures:

• City of Buenos Aires.
• Misiones.
• Tierra del Fuego, Antartida e Islas del Atlantico Sur.