Benefited activities and requirements
In brief
By Decrees No. 234/2021 and No. 836/2021, the Executive Power established in Argentina an Investment Promotion Regime for Exports (“Regime“), granting benefits to those who make a direct investment in foreign currency of no less than USD 100 million, either for: (i) new investments; or (ii) to expand an existing business unit in industrial forestry, mining, hydrocarbon, manufacturing and agro-industrial activities (“Project“).
In depth
Companies, domiciled in the country or abroad, may apply to be included in the Regime by submitting an “export investment project” in the aforementioned sectors of activity to the Ministries of Economy and Productive Development.
Countries included in the Regime are entitled to use up to 60% of the proceeds obtained from exports related to the Project for: (i) the repayment of principal amounts and interest of foreign commercial or financial debts; (ii) profits and dividends distribution, corresponding to closed and audited balances; and/or (ii) the repatriation of direct investments made by non-residents (“Destinations”).
The benefits granted include:
- Up to 20% of the proceeds obtained from exports related to the Project may be used for the Destinations, if the Project involves investments of between USD 100 million and USD 500 million.
This benefit may not exceed an annual maximum equivalent of 25% of the gross amount of foreign exchange inflows, and may be applied after one year from the effective date of the foreign exchange income.
- Up to 40% of the proceeds obtained from exports related to the Project may be used for the Destinations, if the Project involves investments of between USD 500 million and USD 1 billion
- Up to 60% of the proceeds obtained from exports related to the Project may be used for the Destinations, if the Project involves investments exceeding USD 1 billion
For items (ii) and (iii), the benefit may not exceed an annual maximum equivalent of 40% or 60%, respectively, of the gross amount of foreign currency entered into the country, and may be accessed two calendar years from the first entry of the foreign currency initiating the Project.
- Regulatory stability in foreign exchange matters for 15 years, meaning that the mentioned benefit may not be affected by foreign exchange regulations that may potentially establish more burdensome conditions.
The term to avail of the benefits conferred by the Regime will be three years, counted as from 6 April 2021, and its validity may be extended for an equivalent period of time.
Click here to download the Spanish Version.
