Argentina's senate has approved “a Regime to Promote the Knowledge Economy” on May 29. 2019, The Regime will be valid from January 1, 2020 until December 31, 2029, aimed at incentivizing investment in the sector, doubling the number of jobs and generating US$15 billion from exports by 2030. The Regime will apply throughout Argentina, and aims to promote economic activities that apply knowledge and digitization of information, supported by advances in science and technology, to obtain goods and services. The Regime aims to promote the creation, design, development, production, and implementation of software, computer, and digital services.

The National Registry of Beneficiaries of the Regime for the Promotion of the Knowledge Economy will be established, to which those who would like to access the Regime must register. Access to the Regime may be granted to legal persons incorporated in Argentina or authorized to act in Argentina, to develop in the country on their own as a main activity, the activities mentioned above, are registered in the National Registry, and meet at least two of the following requirements:

• Continuous improvements in the quality of its services, products and/or processes.

• Research and development represent at least 3% of total turnover, and training of employees represent at least 8% of total wages.

• Exports of goods and/or services that arise from the development of any of the promoted activities represent at least 13% of total billing corresponding to those activities.

The tax incentives established by the law include fiscal stability, reduction and refund of employer contributions and reduction of the Income Tax rate to 15%.The purpose of this new regime is to replicate the success obtained by the Software Promotion Law, a factor that decisively contributed to the enormous growth and international insertion of the Argentine software industry in the last 15 years, in which it multiplied several times the formal employment and its volume of exports.