Tax benefits for the knowledge economy

Starting next year, tax benefits will begin to apply to activities related to the knowledge economy. Until now these advantages were limited to software activity, but with the recent enactment of Law 27,506, the advantages extend to other areas. Just at the end of the year the law that grants tax benefits for the software expires, which was renewed since 2004.

The new promotion regime, which will apply to the entire country, aims to promote economic activities that link knowledge with the digitalization of information, supported by technological advances. For that, the National Registry of Beneficiaries of the Regime for the Promotion of the Knowledge Economy is created, in which those wishing to access the tax benefits must register.

Going into detail, the regime includes the creation, design, development, production and implementation or adaptation of products and services and their associated technical documentation, including that which is prepared to be incorporated into processors and / or other technological devices. You can register all companies incorporated or qualified that develop in the country, on their own and as a main activity, any of those provided by law. The Regime for the Promotion of the Knowledge Economy will be valid from January 1, 2020 and until December 31, 2029.

Among the activities included are: software and computer and digital services that are applied to activities such as e-learning, interactive marketing, e-commerce, services for the provision of applications, editing and electronic publication of information; development and development of original software products that can be registered as an unpublished or edited work; implementation for third parties of software products owned or created by third parties and registered products; Custom software development; value-added computer services aimed at improving the security of equipment and networks, the reliability of software programs and systems, the quality of systems and data and the management of information and knowledge of organizations; development of parts of systems, modules, routines, procedures, documentation; design services, coding, implementation, maintenance, remote support, resolution of incidents, conversion and / or translation of computer languages, addition of functions, preparation of documentation for the user and guarantee or quality assurance of systems; development and fine-tuning of software that is developed to be incorporated in processors; video game; and cloud computing services

It also covers audiovisual production and postproduction, including those in digital format; biotechnology, bioeconomy, biology, biochemistry, microbiology, bioinformatics, molecular biology, neurotechnology and genetic engineering, geoengineering and its testing and analysis; geological and prospecting services and services related to electronics and communications; professional services, only to the extent that they are for export; nanotechnology and nanoscience; aerospace and satellite industry, space technologies; engineering for the nuclear industry; manufacturing, tuning, maintenance and introduction of goods and services oriented to automation solutions in production that include feedback cycles from physical to digital processes and vice versa, being at all times, exclusively characterized by the use of industry technologies 4.0 , such as artificial intelligence, robotics and industrial internet, internet of things, sensors, additive manufacturing, augmented and virtual reality.

Also included are engineering activities, exact and natural sciences, agricultural sciences and medical sciences related to research and experimental development tasks.

Among the requirements to be met are to demonstrate the accomplishment of continuous improvements in the quality of its services, products and / or processes, or through a recognized quality standard. Also demonstrate the realization of expenditures in research and development activities, at a minimum of three percent of your total billing; and / or training of the employees affected to the activities in a minimum of eight percent of the total wage bill.