Are you investing in Argentina with knowledge? Precisely so is the Knowledge-based economy or the ability to produce profit through technological and human capital valorization.
More in detail, the ability to make the company’s production and organizational processes and its workers more profitable through innovation and training.
Argentina, in this sense, makes a great leap forward through a ten-year tax relief plan for new and existing companies that intend to join the knowledge-based economy.
An opportunity to be exploited by multinational companies in internationalization processes by establishing production units in the country.
What requirements to obtain tax benefits when investing in Argentina.
Companies that intend to obtain the tax benefits provided for the knowledge economy must:
- Being part of the high-tech sectors envisaged by the standard;
- Being established as a company;
- For foreign companies, having incorporated a company or opened a permanent establishment;
- Having as main activity (at least 70%) one of those provided for by the standard;
- Demonstrate a constant activity of innovation and technological research for products/services;
- Allocate part of the revenues in development and research;
- Show that a portion of revenues (13%) comes from exports;
- Benefits for participating companies.
The main facility provided for a high-tech company that invests in Argentina, after the law 27506/19, reduces the federal tax rate, which goes from 25% to 15%.
A further benefit is that relating to VAT which is exempted.
Again, benefits on employee tax contributions through the tax credit mechanism.
The facilitated regime will remain that starts from next January 1st and will remain in force until the end of 2029.
An excellent opportunity to invest in Argentina, a unique opportunity also to export its know-how.
High-tech information technology companies will undoubtedly benefit, but also innovative industries such as biotechnology and robotics