1. The deadline to apply for adherence to the RIGI is extended, on a one-time basis, for an additional term of one (1) year as from July 8, 2026, thereby extending the period for the submission of projects until July 8, 2027.

 

2. The scope of the oil and gas sectors is expanded to expressly include the exploitation and production of new onshore developments of liquid and gaseous hydrocarbons.

 

3. “New developments” are defined as those projects which, as of the enactment of Law No. 27,742, had not reached a significant level of development and which, at the time of applying for adherence to the RIGI, do not have investments in exploitation or production.

 

4. Offshore activities are systematically incorporated into the regime.

 

5. Differentiated minimum investment thresholds are established as follows:

a. USD 600 million for new onshore developments; and

b. USD 200 million for the offshore exploration and production subsector.

 

In addition, segregation and traceability are required where activities covered and not covered by the regime coexist within the same area.

 

6. The new decree also adjusts the presumption of non-distortion of the local market set forth in the regulations, establishing that production and export projects involving commodities are presumed not to generate distortion, thereby limiting such presumption to projects with an effectively export-oriented profile.

 

7. Technology sector: the concept of expansion of pre-existing projects is amended. An expansion shall not only include increases in installed productive capacity but also the incorporation of a new product, provided that concurrent conditions are met: (i) the new product entails innovation with differences of at least 50% in its components measured in economic value; (ii) the minimum investment equals or exceeds USD 250 million; and (iii) the product’s useful life cycle does not exceed ten (10) years, which must be evidenced by an independent technical report.

 

8. The expansion of pre-existing projects not previously adhered to the RIGI is regulated in greater detail. Such expansion may qualify as a Single Project (Proyecto Único) if it complies with the regime’s requirements and ensures that incentives apply exclusively to the expansion. For such purpose, the incorporation of a Dedicated Branch (Sucursal Dedicada) is required, and accounting and operational segregation criteria are established, although shared use of infrastructure is permitted.

 

9. With respect to expansions of projects already adhered to the RIGI, prior authorization from the Enforcement Authority shall not be required, and additional investments shall benefit from the regime’s incentives under the same terms as the original project, without implying renewal or extension of the rights and obligations originally granted.

 

10. The regulation of the special accelerated depreciation regime is replaced, establishing that its application is optional for the Single Project Vehicle (“VPU”, for its Spanish acronym) and, once elected, must apply to all investments throughout the life of the project. The conditions for its use are clarified, including the requirement that the assets remain within the VPU’s estate and the possibility of extending the benefit to infrastructure works and plants functionally integrated with the concession or exploitation right, subject to certain technical requirements.

 

11. Regarding dividends and remittances abroad, the cases in which the 7% withholding rate applies are clarified. Structures in which profit remittances are channeled abroad through the company holding a Dedicated Branch are contemplated, with such company acting as withholding agent in order to prevent distortions arising from the adopted legal structure.

 

12. Concerning customs benefits, the conditions for imports applicable to both VPUs and suppliers are specified. In the case of VPUs, the benefit is limited to new capital goods identified as Capital Goods (BK) or Computer and Telecommunications Goods (BIT), excluding inputs, although exceptional authorizations may be granted based on technical essentiality. For suppliers, the requirement of substantial transformation of imported goods is reinforced, a cap of 50% of the imported value relative to the contract value is established, and intervention by the Central Bank is contemplated where there is net demand for foreign currency.

 

13. Foreign exchange matters are further clarified by expanding the computation of foreign currency inflows to include not only those directly settled by the VPU but also those contributed by shareholders, members of temporary joint ventures (“UTE”, for its acronym in Spanish), or the company holding the Dedicated Branch, provided that such funds are effectively allocated to the Single Project and are subject to adequate traceability. Procedural aspects relating to the Evaluation Committee, the intervention of the Secretariat of Industry and Commerce in the case of suppliers, and the administrative enforcement regime (régimen sumarial) are also reinforced.