Argentina Extends RIGI Deadline to 2027 and Expands Oil, Gas, and Tech Investment Rules

Bomchil | Decree 105/2026, published in the Official Gazette on February 19, 2026, introduces the following relevant modifications to the regulations of the INCENTIVE REGIME FOR LARGE INVESTMENTS (RIGI) approved by Decree 749/2024, within the framework of Title VII of Law 27,742:

1. The deadline for joining the RIGI is extended once only for an additional one (1) year, starting from July 8, 2026, thus extending the possibility of submitting projects until July 8, 2027.

2. In sectoral matters, the scope of the oil and gas sector is broadened, expressly incorporating the exploitation and production of new onshore liquid and gaseous hydrocarbon developments.

3. It is defined that "new developments" will be considered those projects that, at the time of the enactment of Law 27,742, did not present a significant level of development and that, at the time of requesting adherence, do not have investments in exploitation or production.

4. Offshore activities are systematically included.

5. Differentiated minimum investment amounts are established:
    a. USD 600 million for new onshore developments; and
    b. USD 200 million for the offshore exploration and production subsector.
Furthermore, segregation and traceability are required when activities covered and not covered by the regime coexist in the same area.

6. The new decree also adjusts the presumption of non-distortion of the local market provided for in the regulations, establishing that commodity production and export projects are presumed not to generate distortion, thus seeking to limit the presumption to projects with an effectively export-oriented profile.

7. Technology sector: the concept of expansion of pre-existing projects is modified. It is established that not only will the increase in installed production capacity be considered an expansion, but also the incorporation of a new product, provided that the following conditions are met: that the new product involves an innovation with differences of at least 50% in its components measured in economic value; that the minimum investment is equal to or greater than USD 250 million; and that the useful life cycle of the product does not exceed ten years, a circumstance that must be certified by an independent technical report.

8. The expansion of pre-existing projects not adhering to the RIGI is regulated in greater detail, allowing the expansion to qualify as a Single Project provided it meets the regime’s requirements and it is guaranteed that the incentives are applied exclusively to said expansion. To this end, the establishment of a Dedicated Branch is required, and guidelines for accounting and production segregation are established, although the shared use of infrastructure is permitted.

9. Regarding expansions of projects already adhering to the RIGI, it is stipulated that they will not require prior authorization from the Implementing Authority and that the additional investments will enjoy the incentives of the regime under the same terms as the original project, without this implying renewal or extension of the rights and obligations initially granted.

10. The regulations governing the special accelerated depreciation regime are replaced, establishing that its application is optional for the VPU (Public Housing Unit) and that, once the option is exercised, it must be applied to all investments throughout the project’s lifespan. The conditions for its use are specified, including the requirement that the assets remain within the VPU’s assets and the possibility of extending the benefit to infrastructure works and plants functionally integrated into the concession or operating right, subject to certain technical requirements.

11. Regarding dividends and remittances abroad, the assumptions for the application of the 7% rate are clarified and structures are contemplated in which the remittance of profits abroad is channeled through the company that owns a Dedicated Branch, providing for its action as a withholding agent, in order to avoid distortions derived from the legal structure adopted.

12. Regarding tariff benefits, the import conditions for both VPUs and suppliers are specified. In the case of VPUs, the benefit is limited to new capital goods identified as BK or BIT, excluding inputs, although the possibility of exceptional authorizations for essential technical reasons is foreseen. For suppliers, the requirement for substantial transformation of imported goods is reinforced, a limit of 50% of the imported value relative to the contract is established, and intervention by the Central Bank is foreseen when there is a net demand for foreign currency.

13. Clarifications are introduced regarding foreign exchange, expanding the calculation of foreign currency inflows to include not only those settled directly by the VPU (Single Project Unit), but also those inflows by shareholders, members of temporary joint ventures, or the company owning the Dedicated Branch, provided they are effectively allocated to the Single Project and have adequate traceability. Procedural aspects related to the Evaluation Committee, the involvement of the Secretariat of Industry and Commerce in the case of suppliers, and the summary proceedings are also strengthened.

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