Argentina Announces Tax Incentives Plan to Encourage Software Industry Growth

SUNNYVALE, Calif. - Oct. 8, 2013 - PRLog -- On September 16, 2013, the Official Gazette in Argentina published a decree to promote the software industry (Régimen de Promoción de Software) by allowing tax incentives to individuals and legal entities whose core activities are in the software sector. This law will promote the growth and position of the software industry to be one of the more rapidly expanding industries in Argentina, says Nair & Co. International Tax Advisory Services (http://www.nair-co.com/international-tax-compliance-services.aspx) Team.

Further, the modifications to the regime will have added tax benefits. These tax incentives will remain in force until December 31, 2019. A list of eligible activities for the incentives regime has been published.

Following are some of the outlined requirements to remain enrolled in the registry. Producers of software and providers of technological services must:

*          Maintain the same employee count as declared at the time of the registration;

*          Apply different measures to report the execution of the promoted activities;

*          Adhere to certain conditions, non-adherence of which may forbid software producers from applying or benefiting from the new regime such as failure to make good on tax obligations and criminal offences against board members.

Tax benefits to companies that develop software, under this promotional regime, may include:

*          Exemption from VAT or reserve withholding.

*          Annual income tax reductions to both domestic and foreign income.

*          Tax credits against social security expenses for personnel related to the industry, in proportion to exports.

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