RIGI: Moving Forward with the Regulation

Decree 940/2024 and Resolution 1074/2024 were published in the Official Gazette on October 22, 2024. The Decree introduces certain modifications to the Incentive Regime for Largen Investments (RIGI), implementing regulations for its better understanding and application. By means of the Resolution, the Ministry of Economy—in its capacity of enforcement authority—approves the different procedures applicants interested in adhering to the RIGI must carry out.
 

Some of the main aspects introduced by these RIGI regulations are:

Amendments to the implementing decree

The Executive had initially implemented RIGI by means of Decree 749/2024. Decree 940 introduces certain amendments to the original implementing decree which include, besides to some formal rectifications, modifications applicable to those who register as suppliers of goods adhered to the RIGI, considerations related to Long-Term Strategic Export Projects, and requirements applicable in cases of expansions of a pre-existing project not adhered to the RIGI.

Procedures for implementing the RIGI

With the Resolution, the Ministry of Economy established the different procedures to request adhesion or abandonment:
 

1. the procedure for adhering to the RIGI for Single Project Entities (VPU) in charge of a Single Project,
2. the procedure for adhering to the RIGI for the Long-Term Strategic Export Projects,
3. the procedure for adhering to the RIGI of the Expansion of a Pre-existing Project not adhered to the regime,
4. the procedure for adhering to the RIGI of the local supplier of goods and/or services with imported goods,
5. the procedure for voluntarily abandoning a RIGI Project.

Among other matters, the Resolution confirms that the applications for adhering or abandoning the RIGI will be made through the Remote Procedures Platform (TAD). The Resolution also approves the administrative proceeding to be followed in each procedure and establishes the content of the corresponding administrative act of approval.

Notwithstanding the fact that the RIGI has been operative since the entry into force of Law 27742, until the issuance of the Resolution, the regulation of the procedures applicable to those requesting to adhere to or abandon this regime was pending.