According to the Law, the Regime will be regulated within 30 business days from its promulgation, which will be on 9 January 2025.
In focus
The purposes of the Regime are as follows:
- To promote the investment and production of strategic sectors that generate added value
- To promote the generation of qualified and/or registered employment
- To promote the development of provincial suppliers
- To encourage the promotion, development and transfer of new technologies, knowledge and innovation
- To diversify the productive matrix
- To increase provincial exports and/or import substitution
- To promote a more equitable territorial development
- To develop new productive sectors
Covered taxpayers
- Duly registered legal entities incorporated in Argentina or authorized to act within its territory in accordance with its laws
- Transitory unions, collaboration groups and cooperation consortia regulated by Chapter 16, Title IV of Book III of the Argentine Civil and Commercial Code
Covered sectors
- Manufacturing industry
- Services (including tourism, logistics and other services)
- Cultural industries
- Health
- Natural resource intensive sectors (including mining, energy, oil and gas)
Covered projects
- New plant or investment
- Expansion of plant or existing facilities, when the increase in theoretical production capacity is at least 30%, without reducing employment
- New production process, when the new investment exceeds 30% of the value of the existing fixed assets according to books at constant currency or market value, whichever is greater, and employment is not reduced
Project amounts
Project amounts must exceed a minimum amount of USD 5 million.
For investment projects from USD 5 million up to USD 50 million, to remain in the Regime, at least 40% of the minimum amount of investment committed must be invested during the first three years counted from the date of notification of the administrative act that approves admission to the Regime.
For investment projects over USD 50 million, to remain in the Regime, at least 40% of the minimum investment amount committed must be invested during the first two years from the date of notification of the administrative act approving admission to the Regime.
Deadline to submit projects
The deadline to apply for the Regime will be two years counted as from the entry into force of the regulation.
Project approval
For the purposes of acquiring the rights and benefits established in the Regime, interested parties must obtain the express approval of the application authority. The rights and benefits will be acquired as from the notice of the administrative act that approves the application, and they cannot, under penalty of nullity, be granted and/or recognized retroactively.
Provincial supplier development program
Companies that are beneficiaries of this Regime and whose investment is greater than USD 50 million must submit a supplier development program that contemplates that, on an incremental basis and following the schedule stated by the application authority, at least 50% of the total amount allocated for the payment of suppliers will be applied to the hiring and acquisition of goods, services and/or works from companies located in the province of Buenos Aires.
Tax benefits
- Partial exemptions from the payment of real estate, gross income and stamp taxes in accordance with the following timetable
- Fiscal stability
| Investment amount/base benefit |
Number of years |
Percentage of exemption |
| From USD 5 million up to USD 50 million |
Five years |
30% |
| More than USD 50 million up to USD 200 million |
Four years |
25% |
| More than USD 200 million |
Three years |
20% |
If any of the following conditions are met, the following percentages and years of benefits will be added:
| Conditions |
Number of years |
Percentage of exemption |
| Increase in employment |
Two years |
10% |
| Place (excluding) low-income areas/industrial areas |
Two years |
10% |
| Import substitution |
Two years |
10% |
| Technological innovation |
Two years |
10% |
| Increase in exports |
One year |
5% |
| Gender policy |
One year |
5% |
| Environmental sustainability |
One year |
5% |
The percentage of exemption corresponding to the above will be applied according to each tax as provided below:
- Real estate tax: on the portion corresponding to the property or properties allocated to the activities carried out within the framework of the investments promoted in accordance with the Regime
- Gross income tax: on the income derived from the activities developed, obtained within the framework of the new plant or investment promoted in accordance with the Regime (In the case of expansions and/or new productive processes, it will only apply to the new income generated exclusively by such projects.)
- Stamp tax: corresponding to the acts, contracts and operations necessary for the construction, assembly and/or start-up of the facilities required for the activities to be developed within the framework of the investments promoted, in accordance with the Regime created by the Law, and the acts, contracts and operations directly related to their development (This exemption will extend to all other contracting parties.)
The exemptions will be in force as from the date of notice of the administrative act admitting the project to the Regime, as provided for in Article 12 of the Law, with the exception of the gross income tax exemption, which will be in force as from the total compliance of the investment project.
Tax stability
The benefit of tax stability implies that, as from the notice of the administrative act approving the admission of the project to the Regime and during the term of benefits granted to the project, the taxpayers that have been admitted to the Regime may not see an increase in the tax burden corresponding to the gross income tax and stamp tax in force on the date of admission to the Regime, in relation to the promoted activity or to the acts, contracts or operations benefited.
The application authority may grant the benefit for a maximum period of 30 years.
Fiscal stability may not be affected by the revocation of the Law, the creation of new provincial taxes or the creation of other, more burdensome or restrictive tax regulations that affect the gross income or benefits included in the Law.
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