The Senate approved a new investment incentive regime to complement the RIGI

The National Senate approved this Thursday the Relevant Investment Incentive Regime (RIIR), an initiative that received support from La Libertad Avanza (LLA) and aims to expand tax benefits for companies making productive investments in Argentina. The project obtained 60 affirmative votes and only two negative ones, from the senators from Santa Cruz José María Carambia and Natalia Gadano, so it will now be addressed by the Chamber of Deputies for its final approval.

The new regime is presented as a complement to the Large Investment Incentive Regime (RIGI), promoted by the Government of Javier Milei, with the aim of extending tax incentives to smaller scale projects. The proposal received support from the ruling party bloc, led by Patricia Bullrich, as well as backing from other parliamentary forces, which allowed for a broad majority during the general vote.

The benefits of the new investment regime

The RIIR includes tax benefits for productive investments exceeding USD 12 million, including accelerated depreciation in the Income Tax and early reimbursement of VAT tax credits. Among the activities covered are the acquisition, manufacture, and importation of machinery and new goods intended for production, as well as the execution of works related to industrial activities and other productive ventures.

The project also includes investments related to irrigation systems, energy efficiency, agricultural machinery, fishing, and forestry activities, with particular conditions for certain goods in the agricultural sector. On the other hand, investments in financial assets, portfolio assets, and goods for resale are excluded, with the aim of directing tax benefits towards projects directly linked to production.

Furthermore, interested companies must present an investment plan detailing the characteristics of the venture, its location, financing, execution schedule, and productive and labor impact. The initiative also incorporates a commitment to hire national suppliers for at least 20% of the amount allocated to tradable goods, provided that there is local supply available under competitive market conditions.

La Libertad Avanza celebrated the progress of investment incentives

During the parliamentary debate, Patricia Bullrich defended the initiative and emphasized the importance of transforming economic stability into new investments, production, and wages. The president of the La Libertad Avanza bloc stated that, after the reorganization of the economy, the next challenge is to create conditions for companies to expand their productive capacity, incorporate machinery, and generate employment.

In this way, the ruling party supported a new scheme of tax incentives that complements the national government's investment promotion policy. With the approval obtained in the Senate, the initiative must now pass through the Chamber of Deputies to become law and enable the application of the new tax benefits.