ANNOUNCEMENT 09 Sep 2013

In September 2013, the government of Argentina announced a targeted tax change.

NUMBER OF INTERVENTIONS

1

  • 0 harmful
  • 0 neutral
  • 1 liberalising

SOURCE



Decree 1.315 of 9 September 2013, published in Official Gazette of 16 September 2013 (in Spanish): http://www.infoleg.gob.ar/infolegInternet/anexos/215000-219999/219711/norma.htm

EY, tax alert of 16 September 2013: http://www.ey.com/GL/en/Services/Tax/International-Tax/Alert--Argentina-issues-additional-regulations-regarding-Software-Promotional-Regime

Chamber of Software Companies & IT Services of the Republic of Argentina (in Spanish) : http://www.cessi.org.ar/ver-noticias-entro-en-vigencia-la-nueva-ley-de-software-26-692-1525


Inception date: 16 Sep 2013 | Removal date: open ended
Still in force

Tax or social insurance relief

On 9 September 2013, the Argentinian government adopted Presidential Decree 1,315/2013 regulating the 'Promotional Regime for the Software Industry' set forth by Law 25,922 and extended by Law 26,692. Companies that develop software receive the following benefits until 31 December 2019:

  • stability for taxpayers
  • tax credit, which can be used to offset national tax liabilities (for instance, VAT)
  • 60% reduction in the income tax burden for each fiscal year, applicable to both Argentine source income and to foreign source income
  • excemption form VAT withholding or reverse withholding

 
However, companies interested in the promotional regime are obliged to fulfill the following requirements:

  • Carry out software research and development (R&D) activities: R&D annual expenditures should represent at least 3% of the annual total expenses until 2015. Afterwards, the percentage will be increased annually until 2019.
  • obtain a quality certification of software products or processes
  • Perform software exports: The exports should represent at least 8% of the annual total revenues until 2015. Afterwards, the percentage will be increased annually until 2019.

 
The Law 26.692 took effect on 28 February 2014.

AFFECTED SECTORS

 

AFFECTED PRODUCTS