The Argentine government issued a decree on 16 September 2013 to promote the software industry. The decree will allow tax incentives to individuals and legal entities whose core activities are in the software sector and is anticipated to promote the growth and position of the software industry to be one of the more rapidly expanding industries in Argentina.
The amendments to the regime will have added tax benefits which will remain in force until 31 December 2019.
According to the requirements of the new law, producers of software and providers of technological services must maintain at least the same employee count as declared at the time of the registration, apply different measures to report the execution of the promoted activities and adhere to certain conditions. Non-adherence to these conditions may result in software producers being barred from applying or benefiting from the new regime. The conditions include failure to make good on tax obligations and criminal offences against board members.
Under this promotional regime companies that develop software may include exemption from VAT or reserve withholding, annual income tax reductions to both domestic and foreign income and tax credits against social security expenses for personnel related to the industry, in proportion to exports.
