The Large Investment Incentive Regime (RIGI) has been designed not only to attract major capital flows, but also to encourage the active participation of local companies—particularly Small and Medium-Sized Enterprises (SMEs)—in the value chain of the Single Project Vehicles (SPVs) that adhere to it. Far from being an exclusive regime for large players, RIGI opens two main avenues of opportunity for national SMEs.
In this article, we explain in simple terms the ways in which the program allows local companies to take advantage of these new possibilities. Our goal is to help local entrepreneurs anticipate and optimize their chances of securing these business opportunities.
1. Integration into the Mandatory Local Procurement Quota (20%)
One of RIGI’s fundamental provisions is the obligation for SPVs to allocate at least 20% of their total procurement to local companies. This requirement applies both during the construction phase and the operational phase of the projects and is monitored on a biennial basis. Although further regulation is still pending, this obligation is clearly established in the promotional framework.
Who qualifies as a Local Supplier?
A local supplier is defined as an individual with tax domicile in Argentina or a legal entity incorporated and domiciled in the country, provided that at least 51% of its share capital or controlling votes are held by individuals and/or legal entities with tax domicile in Argentina.
No Special Adhesion Required: It is important to highlight that an SME can qualify within this 20% quota, at least for now, without having to adhere to the «RIGI Suppliers» program. Their participation is materialized simply by being contracted by one or more SPVs, as long as they meet the definition of local supplier. This means that, with proper planning and awareness of the requirements, a company may enter this new market without additional procedures. What remains to be defined is how both companies and SPVs will certify the national and SME status of the suppliers.
Restrictions: Goods or works provided by companies linked to the SPV will not be counted within this percentage, unless they are the only suppliers capable of meeting the demand.
2. Adhesion to the «RIGI Suppliers» Program to Access Customs Benefits
This is not necessary in all cases. However, for SMEs that need to import goods with specific tax exemptions for their supplies to SPVs, the «RIGI Suppliers» program is the proper channel. By adhering to this program, suppliers gain access to customs benefits that are not available to non-adhering suppliers.
Who can adhere to the «RIGI Suppliers» program?
Suppliers of goods that require the import of inputs and intermediate goods for industrial transformation, resulting in the production of Capital Goods (CG) and/or Information Technology and Telecommunications Goods (ICT), as provided in Annex I of Decree No. 557/23. This transformation process must generally result in a «tariff heading shift.»
Service providers that require the import of final goods (CG/ICT) to deliver their services to an SPV.
Important: The provision of imported inputs or intermediate goods without an industrial transformation process giving the product a new form is not allowed. It is crucial to understand how imported goods must be managed before finalizing a contract with an SPV. While goods may be stored for up to 360 days, failure to secure a contract will require their re-export or payment of exempted taxes plus a 100% surcharge.
Key Benefits for Adhering Suppliers
Exemption from import duties, statistical fees, and destination verification charges.
Exemption from any national or local tax collection systems, advance payments, or withholdings, including VAT, additional VAT, Income Tax on imports, and—in provinces that adhere to RIGI—Gross Income Tax.
Requirements for Adhesion
Possession of a CUIT and fiscal code (level 3 or higher).
Being a supplier to one or more SPVs under RIGI.
Registration under the «importer/exporter profile» (AFIP Resolution 5472/24).
Identification and description of goods to be imported under tax exemptions.
Adhesion Process (Remote Procedures – TAD)
The application is submitted via the TAD platform. Documentation includes: supplier identification, legal entity accreditation, identification of the SPVs, contractual relationship (contract or letter of intent), report from a registered industrial engineer, and detailed spreadsheets on goods to be imported (Input-Output Matrix, Intermediate Goods Imports, Final Goods Imports, and Staggered Final Goods Imports).
Goods without a signed contract yet: If there is no signed contract with an SPV, imported goods must remain unused in storage for up to 360 days (renewable). If the contract is not executed, the goods must be re-exported or exempted taxes repaid with a 100% surcharge, subject to caps. Information on approved goods is forwarded to the General Customs Directorate (DGA) via the Argentine Single Foreign Trade Window (VUCEA) for automatic validation.
Deallocation of Imported Goods: If a final good imported with exemptions is deallocated before the end of its useful life, the supplier must repay exempted taxes with a 100% surcharge, up to a maximum of 35% of the tariff. No repayment will be required if the deallocation occurs after the end of its useful life or if re-export is authorized.
Conclusion
RIGI presents a horizon of growth not only for foreign direct investment but also for Argentine SMEs. Understanding its mechanisms and anticipating its challenges is key to turning these opportunities into sustainable growth for your company. At Nunes & Asociados, we can provide strategic, tailored legal advice to help your business position itself in this new market.
We also recommend, in addition to legal guidance, consulting with your trusted accountants, since proper tax and accounting planning are crucial to ensure these opportunities do not turn into liabilities for your company.
