In a few months, the "Regime of Promotion of the Knowledge Economy" will come into force1 in Argentina. Its grants very relevant benefits to companies that can apply in it, significantly reducing the tax burden to the lowest rates in Latin America, especially as far as Income Tax is concerned.
Act Nro. 27,506 promotes, with tax benefits at the national level, those legal entities incorporated in Argentina -or authorized to act in the country- that develop any of the following economic activities2:
Digital computer software and services. Audiovisual production and post-production. Biotechnology, Bioeconomy, Biology, biochemistry. Geological and prospecting services. Services related to electronics and communications. Professional Services. Nanotechnology and Nanoscience. Space industry and technologies. Engineering for the nuclear industry. Services oriented to automation solutions in production. These activities must represent at least 70% of the total turnover.
The registration in the regime must be filed before the "National Register of Beneficiaries of the Knowledge Economy Promotion Regime", which will operate within the scope of the "National Directorate for Knowledge-Based Services" which depends on the "Secretary of Small and Medium Enterprise Entrepreneurs".
It must be emphasized that the benefits of this Knowledge Economy Regime ("KER") can be implemented together with other promotional regimes, namely:
Act No. 23,877: Section 9 b) Act on the Promotion and advancement of Technological Innovation. Act No. 24,331: Duty Free Zones Act. Act No. 26,270: Act on the Promotion and Development of Modern Biotechnology. II.- KER Registry Registration Requirements.
Anyone who registers with the KER Registry must prove that are fulfilled at least two of the following requirements:
Prove the accomplishment of continuous improvements in quality, or by means of a recognized quality standard3. Certify the execution of expenditures of: Research and development in activities promoted by at least 3% of its total turnover for the period. Training of its employees affected by the activities promoted in at least 8% of the total gross salaries (free of non-remunerative concepts). Export of goods and/or services arising from the development of any of the activities promoted in at least 13% of the total invoice for the relevant period. In the case of professional services, exports are required for 70% of the total...