On 29 August 2024 through Communication “A” 8099 (the “Communication”) of the Central Bank of the Argentine Republic (“BCRA”), the exchange benefits for Single Project Vehicles (“VPU”) adhered to the Large Investment Incentive Regime (“RIGI”) have been regulated.
The main changes include:
1. The following exceptions are established for the obligation of entry and settlement of foreign exchange on the export of goods:
A. Exports made by a VPU adhered to the RIGI for a project declared as a Long Term Strategic Export will be exempt from the obligation to enter and settle foreign exchange, depending on the date of export with respect to the start-up of the VPU communicated to the BCRA:
- 0 % if exported in the first year.
- 20 % if exported after the first year.
- 40 % if exported after two years.
- 100 % if exported after three years.
B. For exports not declared as strategic long-term exports:
- 0 % if the export was made within the first two years.
- 20 % after two years.
- 40 % after three years.
- 100 % after four years.
2. Income for services rendered to a non-resident by a VPU adhered to the RIGI will be exempt from entering and settling foreign exchange, provided that the services have been rendered after the start date of the project communicated to the BCRA.
3. In order to access the foreign exchange market, the VPU must demonstrate that it has brought in foreign exchange for an amount equal to or greater than the requested outflows, with the exception of certain payments such as interest, dividends and principal on local financing.
4. VPUs may access the foreign exchange market to pay commercial and financial debts prior to their maturity, provided that the financings have been previously settled through the foreign exchange market.
5. The VPU may pay dividends to non-resident shareholders without the prior approval of the BCRA if the payment corresponds to amounts previously entered and settled in the foreign exchange market, or if the investment contributions were in kind.
6. The VPU is allowed to use income from exports of goods and services for the payment of interest or principal on financing and repatriation of direct investments of non-resident shareholders.
7. Requirements are established to consider income from financing and in-kind contributions as settled in the foreign exchange market.
8. RIGI benefits cannot be cumulated with other existing or future foreign exchange incentives.
9. Exchange benefits are protected by the exchange stability provided for in Law 27.742, as from the date of accession of the VPU to the RIGI.
