The Government promulgated the Law 27.570, of Knowledge Economy, sanctioned on October 8th, through the Decree 818 / 2020 published today in the Official Gazette.
The legislation seeks to encourage the creation of new ventures or improvements in the services provided by these technology companies, by promoting tax benefits that will be granted on a segmented basis.
In accordance with the provisions of the law, sanctioned on October 8 by the Chamber of Deputies, The promotion regime will be in force from January 1, 2020 to December 31, 2029.
The activities included are: software industry; audiovisual production in digital format; biotechnology, bioinformatics and genetic engineering; nanotechnology and nanoscience; aerospace and satellite industry; and engineering for the nuclear industry.
- Companies established in Argentina or authorized to operate in the country may join.
- Companies must prove that 70% of their turnover from the last year is linked to the promoted activities.
- In the case of new ventures, the development of the promoted activities must be reliably accredited.
- Beneficiaries must demonstrate continuous improvements in the quality of their services and invest in training their employees: 1% for micro-enterprises, 2% for SMEs and 5% for large companies.
Companies that invest in training unemployed people under 25 and over 45 years of age or women who are accessing formal employment for the first time will be able to count for double their value.
Another requirement that they must meet is to export goods from the promoted activities in a percentage of their total turnover for the last year of at least 4% for micro, 10% for SMEs and 13% for large companies.
Beneficiaries of the law will be able to convert up to 70% of the employer contributions they have actually paid into a non-transferable tax credit bond.
These bonds may be used for a period of 24 months from their issuance to pay national taxes.
The tax credit bonus may not be used to pay off debts prior to the beneficiary's effective incorporation into the legal regime.
The benefit will amount to 80% of employer contributions in the case of new hires of women, transvestites, transsexuals and transgender people, whether or not they have rectified their registration data; professionals with postgraduate studies in engineering, exact or natural sciences; people with disabilities; or people living in "disadvantaged areas."
In addition, the law creates the Trust Fund for the Promotion of the Knowledge Economy.
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