Restores and amends special tax regime for knowledge-based economy
26 Oct 2020
On 26 October 2020, Law No. 27.570 ("Promotion Regime for Knowledge-Based Economy") entered into force. The new legislation restores and amends a previously suspended regime, created by Law 27.506 on June 2019. The new regime aims at promoting economic activities that rely on the use of science and new technologies in order to develop goods and provide services. Such activities include, inter alia, software development, biotechnology or R&D in engineering activities or medical sciences.
Available tax benefits include reduced rates of income tax (depending on entity size), tax credits, exemptions on VAT withholding, as well as customs duties for the export of services.
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Type:
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Promotion and facilitation (Investment incentives)
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Industry:
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Primary (Agriculture, forestry and fishing)
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Manufacturing (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:
