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  5. Argentina: Five provinces have joined the Incentive Regime for Large Investments

Argentina: Five provinces have joined the Incentive Regime for Large Investments

26 Aug 2024    2 minute read

In brief

To date, the following five provinces — in chronological order — have joined the Incentive Regime for Large Investments under Title VII of National Law 27742 (RIGI): (i) Río Negro; (ii) Jujuy; (iii) Mendoza; (iv) San Juan; and (v) Chubut (excluding mining). The Chamber of Deputies of Salta has approved the province's accession to the RIGI.

The RIGI is a tool designed to attract investments in strategic sectors through a scheme that, in addition to granting tax, customs and exchange incentives, aims to provide long-term stability and predictability. Provinces that join the RIGI will not be able to impose new local taxes on single project vehicles; they will only be able to impose retributive rates for services effectively rendered. For more information, click here.

Contents

In depth

  1. Río Negro: It was the first province to join the RIGI. The legislature approved it on 18 July 2024 by 35 votes in favor and 10 against, and it came into force on 26 July 2024. The rapid approval was due to the possibility of designating (and the ultimate designation of) Río Negro as the recipient of the Liquefied Natural Gas (LNG) plant that YPF and Petronas are considering building.
  2. Jujuy: The legislature approved the accession on 8 August 2024, but Law No. 6409 is not yet in force as the governor has not enacted it. If the law is not enacted within 10 business days of its receipt, it will become effective automatically. The accession will be valid for two years from its publication in the Official Gazette.
  3. Mendoza: The legislature approved the accession on 13 August by 24 votes in favor and 14 against. Law No. 9567 is not yet in force as its enactment is pending. If the law is not enacted within 10 business days of receipt, it will become effective automatically.
  4. San Juan: The legislature approved the accession on 15 August by 21 votes in favor and 14 against. The law is not yet in force as its enactment is pending. If the law is not enacted within 10 business days of receipt, it will become effective automatically.
  5. Chubut: The legislature approved the accession on 15 August by 18 votes in favor and nine against. However, Article 2 maintained the veto to mining by exempting mining activities prohibited by Provincial Law XVII No. 68 (previously Law No. 5001), i.e., open-pit mining and the use of cyanide. The law is not yet in force as its enactment is pending. If the law is not enacted within 10 business days of receipt, it will become effective automatically.
  6. Partial approval in Salta: On 13 August, Salta's Chamber of Deputies approved the accession to the RIGI and to Article 103 of National Law 27743 on Palliative and Relevant Fiscal Measures. This would enable the possibility of increasing the royalties at the pithead from 3% to 5% for new investment projects. Both bills were sent to the provincial Senate for discussion.

Click here to read the Spanish version.

Contact Information
Adolfo Durañona
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Buenos Aires
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Buenos Aires
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