• A tax invariability mechanism is established for 25 years for local and foreign investors who make investments of at least USD 50 million in mining, industrial, forestry, energy, infrastructure, telecommunications, research, technological development, medical or scientific projects, among others.
• The duration of the tax stability regime will be structured according to the investment amount: 10 years for investments equal to or greater than USD 50 million but under USD 100 million; 15 years for investments equal to or greater than USD 100 million but under USD 350 million; and 20 years for investments equal to or greater than USD 350 million.
• A “cost” is established for opting into the tax stability regime: taxpayers that elect the regime must pay a “stability premium” equivalent to an additional 1.5% on their applicable First Category Income Tax rate throughout the entire invariability period.
• The regime operates through the execution of a contract between the Ministry of Finance, upon a prior report issued by the Foreign Investment Promotion Agency, and the local or foreign investor.
• A total effective income tax burden equivalent to that applicable under the regulations in force on the date the contract is executed is guaranteed. excluding the Mining Royalty and the specific mining tax, if applicable.
• The invariability period is 25 years starting from starts with the commencement of operations of the project, i.e., from the tax year in which gross income attributable to the project’s primary line of business is received or accrued.
• Invariability applies to asset depreciation regimes, loss carryforwards, and organization and start-up expenses.
• The VAT and customs duties regime applicable to the importation of machinery and equipment that qualify as capital goods may be kept invariable for the period required to carry out the investment.
• In the case of mining projects, additional rights are established in relation to the Mining Royalty, exploration and exploitation patents, and new taxes applicable to mining activity.
• The regime may be extended to related projects, that is, projects that are part of the same economic unit of operation due to physical proximity, shared use of infrastructure, or economic or functional interdependence., subject to prior application to the Ministry of Finance to be filed before making any effective investment directly linked to the related project.
• The investor may, on a one-time basis, waive tax invariability and enter the general tax regime.
• Debt may not exceed a 3:1 debt-to-tax-equity ratio, calculated in accordance with the methodology set forth in Article 41 F of the Income Tax Law as of the end of a fiscal year. If such threshold is exceeded, the agreed tax invariability regime is forfeited.
• The tax invariability regime, whether in whole or in part, shall be forfeited if the taxpayer is convicted by a final and non-appealable judgment of a tax offense or is found to have engaged in conduct falling within the scope of the General Anti-Avoidance Rule (GAAR).

Investment projects initiated between the date of President’s Message and the publication of the law, which satisfy such requirements, may access the same invariability regime by submitting an application to the Ministry of Finance within six (6) months following the publication of the law.

Effective date: January 1st, 2027, or as from the entry into force of the law, if this occurs on a later date.

The provisions shown in color correspond to amendments approved by the Congress.