Incentive Regime for Medium Investments (RIMI)

The Incentive Regime for Medium Investments (RIMI) is a tax promotion regime, whose objective is to encourage productive investments in Argentina, particularly in the segment of micro, small and medium-sized enterprises.

To that end, the regime provides a series of tax benefits applicable to investments in productive assets, in order to reduce the cost of investment, improve the cash flow of companies and promote the development of economic activities with an impact on production, employment and exports.

I. Main benefits.

Among the main benefits are:

• VAT tax credit refunds : The system allows for a refund of the VAT tax credit linked to the investments made, which allows for an early recovery of said tax and a significant improvement in cash flow.

• Accelerated depreciation in Income Tax : The investments covered may be deducted in shorter periods than those provided for in the general regime, allowing the calculation of the expense to be brought forward and reducing the tax burden in the first years of the project.

II. Subjects covered.

The regime is aimed at subjects who carry out productive activities in the country and are subject to Income Tax, provided they qualify as micro, small or medium-sized enterprises.

In particular, RIMI may be accesible to:

· Micro, small and medium-sized enterprises up to and including segment 2;

· Non-profit entities, insofar as they are registered and carry out productive activities.

III. Investments included.

The regime is applicable exclusively to productive investments, understood as those intended for the acquisition, production or development of goods directly related to the taxpayer's productive activity.

Specifically, the following are included:

• Capital goods , such as machinery, equipment and facilities.

• Technological and computer equipment , including systems linked to the operation of the company.

• Works and infrastructure affected by productive activity.

• Investments in energy efficiency and renewable energy.

• Assets linked to the agro-industrial sector , such as irrigation systems, hail nets and livestock for productive purposes.