Legislation expanding a tax incentive regime has been approved for domestic entities and professionals conducting certain activities relating to software, robotics, medical research and investigation, and research and development (R&D).
The new law substantially enhances the current tax incentive regime, and provides for:
The new tax incentive regime will be effective beginning 1 January 2020 and will apply until 31 December 2029.
To be eligible for the tax incentive regime, there are certain threshold requirements that taxpayers must satisfy, such as:
1. Provide evidence of continuous improvements in the quality of services, products and/or processes, or evidence of an acknowledged quality standard applicable to such services, products and/or processes
2. Invest at least 3% of sales in R&D or invest at least 8% of total salaries in workforce training
3. Realize at least 13% of the total revenue from the export of goods or services (except professional services companies must derive 70% of their total revenue from the export of services)
Activities eligible under the new law include:
Tax incentive available for eligible activities (listed above) include:
Taxpayers qualifying under the tax incentive regime will have certain reporting obligations; will be subject to audit by the tax authorities; and will be required to pay a fee that generally would not exceed 4% of the tax savings amount. In addition, the tax incentive legislation requires companies to pay an annual contribution of no more than 1.5% of the tax savings to a fund for the development of entrepreneurship.
Multinational companies conducting or planning to conduct eligible activities in Argentina (or that are enrolled under the current software law tax incentive regime) need to consider whether there are opportunities under the new legislative regime.
For more information, contact a tax professional with KPMG’s Latin America Markets Tax practice or with the KPMG member firm in Argentina:
Christian Athanasoulas | + 1 (617) 988-1015 | firstname.lastname@example.org
Alfonso A-Pallete | +1 (305) 913-2789 | email@example.com
Rodolfo Canese | +(5411) 4316-5740 | firstname.lastname@example.org
Violeta Lagos | +(5411) 4316-5740 | email@example.com
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