RIGI: Argentine Tax Authority Regulates Procedural Matters

The Argentine Tax Authority published General Resolution 5590/2024 in the Official Gazette on October 23, 2024, establishing several procedures, formalities, and conditions subjects adhering to the Incentive Regime for Large Investments (RIGI) must comply with. These procedures and formalities are necessary for single project entities (VPU) to be operational, comply with the new requirements regulating transactions between a VPU and related parties, and to apply to the tax and customs benefits the RIGI grants.

 

RG 5590 is structured under seven main Titles and the first six of them regulate the relevant issues:

 

1. Applying for the VPU’s Tax Identification Code (CUIT) and registration for the corresponding taxes and/or regimes. RG 5590 establishes that the VPU’s CUIT may be requested through the Argentine Tax Authority’s website (service: “Registration and Modification of Legal Entities - PJ WEB RIGI”) once the enforcement authority has issued the document approving the adhesion to the RIGI. It also establishes that the Argentine Tax Authority must grant the CUIT within a non-extendable period of 10 working days as of receiving the application. Once granted, the VPU will be under the jurisdiction of the Argentine Tax Authority’s National Large Taxpayers Division. RG 5590 clarifies that the tax registration will remain under the ordinary procedure and establishes that, once registered, the system will automatically register the VPU’s importer/exporter profile.

 

2. Imports and exports declarations. RG 5590 sets the basic features of how imports and exports under the RIGI should be declared to enjoy its benefits. It establishes that the electronic system will have specific options for the importer to select the operations that are covered by the RIGI projects. To enjoy the tax exemptions on imports, the regulation requires the importer to set up guarantees, while on exports it directly allows exporters to use an option to manually assess export duties to assure the application of the fiscal stability management clause set in Law 27742 article 204.

 

3. Issuance of Tax Credit Certificates. RG 5590 establishes that VPUs may issue the certificates without the Argentine Tax Authority’s prior authorization once the supplier, provider, and/or lessor of goods and/or services has issued the receipt supporting the operation included in the investment plan. It also establishes that these certificates must be issued through the Argentine Tax Authority’s website (service: “CERTIVA - VAT Tax Credit Certificates”), which will also indicate information relating to them.

 

4. Matters related to the transfer pricing rules VPUs must comply with regarding transactions with related parties. RG 5590 establishes the rules for assessing transactions VPUs must comply with to determine the prices of transactions with local related parties, as listed in article 1 In addition, it establishes the rules VPUs must follow to ensure that the contribution or cost sharing agreements they entered with local or foreign related parties guarantee the respect of the arm's length principle.

 

5. Exercise of the accelerated depreciation regime option. RG 5590 establishes that VPUs must report, through the Argentine Tax Authority’s website (service: “Digital Filings”), the exercise of the option for each of the assets affected by the project prior to the due date for the filing of the income tax return in which it begins to be applied.

 

6. Considerations regarding the issuance of invoices by VPUs. RG 5590 establishes that VPUs are exempted from complying with the capital requirements the Argentine Tax Authority establishes to obtain the authorization to issue class ‘A’ receipts. These requirements are listed in General Resolution 1575/2003, article 4.

 

RG 5590 and various others aspects of the points highlighted above can be consulted here: https://www.boletinoficial.gob.ar/detalleAviso/primera/315961/20241023.