Promotional Regime Of The Knowledge-Based Economy Comes Into Force 1.1.2020 – Key Points

Author:Mr Augusto Mancinelli
Profession:DLA Piper
 
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On January 1, 2020, Argentina will put in place a sweeping new tax regime - Law No. 27,506, the Promotion Regime - that aims to advance the Knowledge-based Economy. The new tax regime's main objective is to promote digital, information and communication technologies and the highly skilled human capital that creates and advances those technologies. With its broad reach, the new law seeks to put Argentina at the forefront of the knowledge economy in Latin America.

As noted above, Promotion Regime will come into force on January 1, 2020. On October 16, 2019, through the publication of Decree No. 708/2019, the National Executive Power finally regulated the Promotional Regime.

The most important aspects of the Promotion Regime are detailed below.

  1. Covered activities

    The Regime for the Promotion of the Knowledge-based Economy has as its objective the creation, design, development, production and implementation or adaptation of products and services and their corresponding technical documentation (both in its basic and applied aspects and including those developed to be integrated into processors and/or other technological devices), that promote the following items:

    1. Software, and digital and information services

    2. Audiovisual production and post-production, including in digital format

    3. Biotechnology, bioeconomy, biology, biochemistry, microbiology, bioinformatics, molecular biology, neurotechnology and genetic engineering, geoengineering, products and services, including their tests and analysis

    4. Geological and prospecting services, and services related to electronics and communications

    5. Professional services, but only to the extent that they are exported

    6. Nanotechnology and nanoscience

    7. Aerospace and satellite industry, space technologies

    8. Engineering for the nuclear industry

    9. Manufacturing, tuning, maintenance and introduction of goods and services oriented to automation solutions for production, including feedback cycles from physical to digital processes and vice versa, being at all times exclusively characterized by the use of 4.0 industry technologies, such as artificial intelligence, robotics and industrial Internet, the Internet of Things, sensors, additive manufacturing, increased and virtual reality.

    Engineering activities, exact and natural sciences, agricultural sciences and medical sciences related to research and experimental development tasks are also included in the Promotional Regime.

  2. Covered subjects and...

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