Argentina’s Executive Branch has modified Decree 749/2024, which implemented the regime to promote large investments (Régimen de Incentivo para Grandes Inversiones, RIGI ) to provide more clarity or expand specific provisions on 21 October 2024.

The amendments to Decree 749 were enacted through Decree 940/2024, which was published in the Official Gazette on 22 October 2024 and became effective on that date.

The main rules introduced by Decree 940 are as follows:

  • The Executive Branch is defined as a “dedicated or special branch,” which is a branch of a corporation or a limited liability company or a branch of a company incorporated abroad that adheres to the RIGI and whose sole purpose is developing a unique project;
  • The decree outlines the goods eligible for import under the regime, including the following products: inputs and intermediate goods intended exclusively for industrial transformation and improvement that results in capital goods or computer and telecommunications goods. In addition, final goods are identified as capital goods and information technology and telecommunications goods;
  • Suppliers adhering to the RIGI must ensure that the products listed above undergo a significant transformation process, resulting in a change in their applicable tariff category;
  • The supplier must inform the enforcement authority of the completion of the contract within five business days of its occurrence;
  • If these contracts are not fulfilled within 360 calendar days from the issue date, the importing supplier must re-export the merchandise within 60 days. Failure to do so will result in the imposition of import taxes for consumption, calculated at the time of release;
  • If the transfer of the merchandise is carried out after the expiration of its useful life or after its re-exportation has been authorised, payment of said penalty taxes will not be required;
  • Procedures are in place for suspending or cancelling the program and enforcing sanctions.

Earlier, on 23 August 2024, Argentina’s Executive Branch approved regulations under the RIGI as per Law 27,742 via Decree 749/2024. The RIGI regime seeks to attract large-scale investments in Argentina and offers various benefits for investments of over USD 200 million to Argentine and international companies.