In brief
On 29 August 2024, the Central Bank of the Republic of Argentina (BCRA, after its Spanish abbreviation) issued Communication “A” 8099 (“Communication“), which sets forth the implementation of the foreign exchange benefits provided by the Incentives Regime for Major Investments (RIGI, after its Spanish abbreviation).
In depth
The most relevant points of the Communication are as follows:
- Exceptions to the obligation of entry and settlement of foreign currency:
Single Purpose Vehicles (SPVs) adhered to the RIGI are exempted from the obligation to enter and settle foreign currency through the foreign exchange market (FX Market) for the percentages established in the Communication according to the time elapsed since the SPV’s start-up.
Charges for services rendered to nonresidents by an SPV adhered to the RIGI are exempt from the obligation to enter and settle foreign currency through the FX Market.
- Advance collections and financings:
Advance export collections, pre-financings and post-financings are exempt from the obligation of entry and settlement through the FX Market for the same percentage applicable to the export of the financed SPV.
- Access to the FX Market:
SPVs requesting access to the FX Market must submit an affidavit stating that the total amount of foreign currency entered from abroad and settled through the FX Market for any concept by the adhered SPV is, at the time of each access, equal to or greater than the amount resulting from adding the amount of the transaction to be carried out to the total amount of the SPV’s access to the FX Market for any concept.
For such purposes, payments of interest and/or profits and dividends abroad and/or the principal of local financing will not be taken into account.
- Financing and direct investment contributions:
Financial institutions may allow access to the FX Market for the payment of interest and principal on financing without prior approval from the BCRA, provided that certain requirements are met.
The repatriation of direct investment contributions from nonresident shareholders that finance the SPV is permitted, provided that the cumulative amount of the repatriations is less than or equal to the sum of the contributions entered into and settled through the FX Market.
Contributions in kind through the delivery of capital goods may be computed as entered and settled through the FX Market provided that the customs entry record of the goods is obtained.
The Communication entered into force on 29 August 2024.
Click here to read the Spanish version.
