Introduces new tax incentives in high tech sectors
06 Jun 2019
On 6 June 2019, the new Law No. 27506 was enacted, introducing a Regime for the Promotion of the Knowledge Economy. Its aim is to promote economic activities in the following areas: computer and digital software and services; audiovisual production and post-production; biotechnology, bio economy, biology, biochemistry, microbiology, bioinformatics, molecular biology, neurotechnology, genetic engineering, geoengineering; geological and prospecting services and services related to electronics and communications; exported professional services; nanotechnology and nanoscience; aerospace and satellite industry, space technologies; engineering for the nuclear industry; manufacturing of automation solutions (artificial intelligence, robotics and industrial internet, internet of things, sensors, additive manufacturing, augmented and virtual reality); and research and development in engineering activities, exact and natural sciences, agricultural sciences and medical sciences.
The regime envisages a reduced income tax rate of 15%, exemption from value-added tax, deduction of a fixed amount of employer contributions, and a tax credit for the payment of income tax and value-added tax. In order to qualify, an investor has to be registered in Argentina and meet additional criteria, including minimum capital investment on research and development and staff training; minimum exports and quality improvements.
The Regime for the Promotion of the Knowledge Economy will be available for investors from 1 January 2020 until 31 December 2029.
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Type:
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Promotion and facilitation (Investment incentives)
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Industry:
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Not industry specific
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Primary (Agriculture, forestry and fishing)
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Manufacturing (Printing and reproduction of recorded media, Manufacture of chemicals and chemical products, Manufacture of basic pharmaceutical products and pharmaceutical preparations, Manufacture of computer, electronic and optical products, and electrical equipment, Manufacture of machinery and equipment n.e.c., Manufacture of transport equipment, Other manufacturing)
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Services (Publishing, audiovisual and broadcasting activities, Telecommunications, Computer programming, consultancy and related activities, Scientific research and development, Other professional, scientific and technical activities, Other service activities)
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Sources:
