Argentina proposes "Super RIGI" law for $1 billion investments in new industries

Argentina's government is seeking to attract large-scale investments in new industries through a proposed law called the "Super RIGI," or "Regime for the Incentive of Large Investments in New Industries." The initiative, if approved by Congress, would be in effect for five years and targets investments of at least $1 billion in sectors like artificial intelligence, semiconductors, advanced biotechnology, and digital infrastructure.

The "Super RIGI" is designed exclusively for projects developing activities that are not currently present in Argentina or are in an experimental or pilot stage. It explicitly excludes expansions or upgrades to existing facilities. To qualify, investments must be channeled through "Unique Project Vehicles" (VPUs), which are new companies established for each specific venture.

Key benefits for approved projects include a reduced income tax rate of 15%, accelerated depreciation, and unlimited loss carryforwards. Dividend and profit distributions would also see a reduced rate of 3.5% after four years. The regime also offers customs and foreign exchange benefits, such as exemptions on import and export duties for project-related goods and exported products. Furthermore, it introduces a progressive system for the free availability of export-generated foreign currency, reaching 100% by the third year.

The proposal guarantees 30 years of regulatory stability in tax, customs, foreign exchange, and social security matters. It also allows for international arbitration to resolve disputes between the state and investors. Provincial and municipal adherence is required for projects within their territories, with local regulations that alter incentives deemed void.