One by one, the activities that will receive tax benefits under the Knowledge Economy law

One by one, the activities that will receive tax benefits under the Knowledge Economy law

Companies will be able to access benefits such as the segmented reduction of the Income Tax, a reduction of up to 70% in employer contributions and a 0% rate of service export duties.

After last December 22 the regulation of the Knowledge Economy Law, he Ministry of Productive Development advanced with a series of complementary norms for its implementation. In this context, this Thursday was published in the Official bulletin the Resolution 4/2021, through which the portfolio he commands Matias Kulfas established that the Undersecretariat of the Knowledge Economy will implement the actions and dictate the complementary rules for the application of the regulations. He also detailed the activities that will be promoted and how investments in training and Research and Development (R&D) will be considered.

Among the main benefits offered by this regimen stands out the segmented reduction of the Income Tax according to the size of the company, a reduction of up to 70% in employer contributions and a 0% rate of service export duties.

“This law offers a benefit scheme, which rewards the creation of national jobs, encourages exports and promotes the growth of a very important sector for the present and future of Argentina. We believe that in a decade these companies will generate twice as much employment as now, reaching 500,000 workers, and will export close to 10 billion dollars per year. Furthermore, the promotion regime contributes to improving the productive capacity of other productive sectors such as agriculture or industry ”, Kulfas had highlighted.

In consecuense, The Ministry of Productive Development specified the activities included in Annex 2 of the Resolution published today:

In addition, the regulations published in the Official Gazette determined, among others, the following details:

– The categorization of the company by size to receive the segmented benefits will be made based on sales criteria and employed personnel established by the Secretariat for Small and Medium Enterprises and Entrepreneurs.

The unfavorable areas, which will have an additional benefit of 10% on employer contributions, are the provinces of San Juan; Tucuman; Catamarca; The Rioja; Between rivers; Jujuy; Currents; Jump; Missions; Chaco; Santiago del Estero and Formosa.

– To enter the promotion regime, as part of the additional requirements, Beneficiaries will be able to compute their investment in the last 12 months or the average of the last 24 months prior to the date of their registration.

– It was detailed which are the computable investments for the fulfillment of the additional requirement, both for the concept of R&D (example: acquisition of unincorporated technology and knowledge), and for training (example: scholarships that the company grants to its employees), and which are the expenses that cannot be computed.

– The three categories of the concept of Research and Development (R&D) They will be: a) basic research (generating new, mainly abstract knowledge without a prior purpose); b) applied (generate a new knowledge, product, service or intellectual work with a previous purpose or destination); c) experimental (manufacture or development of a prototype or pilot, original model of a knowledge, product or service or intellectual work that includes all the characteristics).

– He National Registry of Beneficiaries of the Regime for the Promotion of the Knowledge Economy It will operate within the scope of the National Directorate for the Development of the Knowledge Economy, which depends on the Ministry of Industry, Knowledge Economy and Business Management.

– The percentage increases of the additional requirements for the biennial revalidation of membership in the regime were set. The beneficiary companies have to increase their investment every two years and the percentage differs according to the size of the company and the type of investment. Micro-enterprises will not be forced to complete additional increments.

– The sanctioning procedure was detailed, which may be initiated after an audit or an analysis of compliance with the obligations of the promotion regime. The enforcement authority will be the one that establishes the sanction, which may consist of a fine or the cancellation of the tax credit bonds.

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Ben Oakley
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