Spring 2026 Issue
producers are excluded, narrowing the scope of this protection. EXPANSION OF PRE-EXISTING PROJECTS: TECHNOLOGY SECTOR FOCUS The decree introduces significant clarifications regarding the expansion of pre-existing projects, particularly within the Technology Sector. To qualify under RIGI, a “New Product” must meet three cumulative conditions: a) It must incorporate technological or functional innovation, demonstrating at least 50 percent differentiation in its components by economic value compared to existing production. This requirement introduces complexity, as validating both innovation and component valuation will likely require independent technical certification. Author: Sergio Caveggia
b) The minimum investment for the expansion must be at least $250m. While this threshold may appear high for technology-driven products, it reflects a focus on infrastructure-intensive projects such as data centres, energy transition facilities, or advanced manufacturing. c) The product must have a defined market life cycle of no more than 10 years. Compliance must be supported by a Technical Life Cycle Report prepared by an independent expert, assessing technological and commercial obsolescence factors. DIVIDENDS AND TAX STABILITY Decree 105/2026 confirms that dividend withholding rates fall within the regime’s tax stability protections. Additionally, it extends the reduced 3.5 percent rate to profits distributed by companies operating through dedicated branches, aligning them with distributions made by local holding companies under Decree 749/2024 and the Income Tax Law. FOREIGN EXCHANGE FLEXIBILITY The decree also introduces a pragmatic adjustment to foreign exchange rules. Under the previous framework, export proceeds had to exceed access to foreign currency markets for payments abroad. The revised provision allows funds originating from foreign capital contributions and external financing to be included in this calculation.
market. The revised wording establishes that only entities that are both producers and exporters of commodities benefit from this presumption. Previously, the use of “and/or” allowed exporters without production activities to qualify. Under the new formulation, exporters that are not also
This change effectively eases access to foreign exchange markets and supports the execution of investment plans, improving liquidity for largescale projects.
legal architecture, which guarantees long-term stability across key regulatory domains. The inclusion of onshore hydrocarbons, the expansion of technology definitions, and the clarification of operational rules demonstrate a willingness to adapt the framework to evolving investor needs. At the same time, the regime maintains high entry thresholds, ensuring that only projects of significant scale and impact qualify. RIGI is not merely a fiscal incentive programme. It is a strategic platform designed to reposition Argentina as a competitive destination for largescale, long-term investment. For investors, the opportunity is substantial, but it requires careful structuring, technical validation, and a disciplined approach to execution.. i ABOUT THE AUTHOR Sergio Caveggia is a tax partner leading the Transaction Tax practice in Argentina. He joined EY in 1994 and brings nearly three decades of experience in international taxation and mergers and acquisitions. His expertise spans inbound and outbound investments, buy-side and sellside transactions, and restructuring. He also advises clients within Private Client Services. Caveggia has worked across industries and participated in numerous due diligence processes over the past 20 years. He is a lecturer at national universities, a speaker at tax seminars, and the author of articles on Argentine tax matters. He is a Certified Public Accountant from the University of Belgrano and holds a postgraduate certificate from Universidad Católica Argentina.
STABILITY AS THE CORE VALUE PROPOSITION For business leaders evaluating Argentina, the extension and refinement of RIGI send a clear signal of policy continuity and investment openness. While tax incentives remain relevant, the regime’s true value lies in its CFI.co | Capital Finance International
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