In focus

Procedures for enrollment, approval and withdrawal from the RIGI

The main aspects of the Procedures established by the Resolution are as follows:

A. General matters

1. Remote application (TAD, after its Spanish abbreviation): Applications for enrollment and withdrawal ("Application") will be made online through the TAD platform.
2. Term: The term for issuing the administrative act that approves or rejects the Application will be 45 business days from the submission of the Application.
3. Suspension of the term to resolve the Application:
   1. When the opinion of other public, private or mixed bodies or organizations is required; when the intervening departments require additional information from the applicants or clarifications; or when a hearing is scheduled
   2. When a notification is issued indicating formal noncompliance by the applicant, until the defect is remedied

B. Content of the administrative act of approval and termination

1. SPV, EELP and expansions projects
   1. Identification of the SPV(s) or corporate vehicle
2. Date of adherence to the RIGI
3. Minimum investment amount to be fulfilled within the first two years
4. Deadline to achieve the minimum investment amount in computable assets
5. Acceptance of the statement to resolve disputes through the mechanisms of Section 221 of the Bases Law regarding arbitration
6. Notification to the AFIP for the generation of the tax identification number (CUIT, after its Spanish abbreviation)
7. Notification to the Central Bank of the Republic of Argentina (BCRA, after its Spanish abbreviation) to apply the exchange benefits to the applicant
8. List of goods and/or services that the applicant may import under the franchise terms of Section 190 of the Bases Law
9. Registration in the corresponding registries

ii. For RIGI suppliers of goods and/or services of imported merchandise

1. Identification of the supplier and a statement that the benefit is limited to the incentive provided in Section 190 of the Bases Law
2. Identification of the SPV recipient(s) of the goods and/or services with imported merchandise
3. List of goods subject to the incentives and rights provided in Section 190 of the Bases Law
4. Registration in the corresponding RIGI supplier registry

iii.    For withdrawals

1. Instruction to the RIGI coordination unit to proceed with the registration in the corresponding registry
2. Notification to the AFIP, the BCRA and the Secretariat of Industry and Commerce for their intervention

C.    Clarifications and modifications to the Regulatory Decree of the RIGI

Some clarifications and modifications that the Clarifying Decree has made to the Regulatory Decree are as follows:

1. SPV suppliers: The 100% increase in taxes is eliminated if the importing supplier must reexport the merchandise due to unfulfilled provisions.
2. The EELP: In the event of noncompliance with the special requirements of the EELP, to maintain adherence to the RIGI, the applicant must adjust the project, under the penalty of no longer adhering to the RIGI. Additionally, to request the removal of an EELP, a minimum investment amount equal to or greater than 20% of USD 2 billion must be met.
3. Withdrawal from the RIGI: The possibility of requesting withdrawal from the RIGI at any time has been eliminated. It is stipulated that it can be requested as long as no infraction summary has been initiated under certain assumptions.
4. Noncompliance and sanctions: The assumption of noncompliance with 40% of the minimum investment amount has been modified to "noncompliance with the applicable minimum investment amount" without mentioning a specific percentage.

D.    Procedures for receiving the tax and customs benefits of the RIGI

RG 5590 establishes the following procedures and formalities that must be observed to obtain the tax and customs benefits established by the RIGI:

1. Procedure for requesting a CUIT for SPVs that adhere to the RIGI
2. Procedure for the tax registration of SPVs that adhere to the RIGI
3. Procedure applicable to suppliers and/or SPVs that adhere to the RIGI for processing import and export destinations
4. Procedure for issuing and managing VAT tax credit certificates
5. Transfer pricing rules applicable to SPVs in transactions with related parties
6. Procedure applicable to exercising the option of accelerated depreciation

Click here to read the Spanish version.