Argentina approves new tax incentives for knowledge-based activities

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November 2020


Argentina’s government, on October 26, enacted new tax incentives intended to promote certain knowledge-based activities through the end of 2029.  Taxpayers that comply with all requirements must apply and register in order to benefit from the new law.

The incentives will become effective for income tax purposes starting with the fiscal year that follows the year in which taxpayers receive approval.  However, they become effective for all other tax purposes as of the date the relevant governmental institution approves the registration.  Furthermore, the incentives apply retroactively to January 1, 2020 for taxpayers that benefited under the software incentive regime, which expired on December 31, 2019.

A similar regime promoting knowledge-based activities was enacted on June 10, 2019, with the publication of Law No. 27,506.  This previous regime was suspended, together with its regulations, under a new administration on January 20, 2020.

The takeaway

While waiting for further guidance in regulations detailing the registration process, multinational entities engaged in Promoted Activities should review their operations in Argentina to analyze the possibility of benefiting from the regime.

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Bernard Moens

US International Tax Inbound Leader, PwC US

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