{"id":9258,"date":"2019-06-10T11:57:11","date_gmt":"2019-06-10T14:57:11","guid":{"rendered":"https:\/\/wsclegal.com\/?p=9258"},"modified":"2026-03-19T11:54:24","modified_gmt":"2026-03-19T14:54:24","slug":"making-way-for-the-new-knowledge-economy","status":"publish","type":"post","link":"https:\/\/wsclegal.com\/en\/making-way-for-the-new-knowledge-economy\/","title":{"rendered":"Making Way for the New Knowledge Economy"},"content":{"rendered":"<div class=\"wpb-content-wrapper\"><p>[vc_row full_width=&#8221;stretch_row_content_no_spaces&#8221; content_placement=&#8221;middle&#8221; css=&#8221;.vc_custom_1694620103250{margin-top: 0px !important;margin-right: 0px !important;margin-bottom: 0px !important;padding-top: 0px !important;padding-bottom: 0px !important;padding-left: 10% !important;background-color: #e8eef5 !important;}&#8221; conditional_render=&#8221;%5B%7B%22value_role%22%3A%22administrator%22%7D%5D&#8221; el_class=&#8221;titulopostcheckout&#8221;][vc_column css=&#8221;.vc_custom_1674106037719{margin-top: 0px !important;margin-bottom: 0px !important;padding-top: 0px !important;padding-bottom: 0px !important;}&#8221; conditional_render=&#8221;%5B%7B%22value_role%22%3A%22administrator%22%7D%5D&#8221;][vc_column_text css=&#8221;.vc_custom_1701128413385{margin-top: 0px !important;margin-bottom: 0px !important;padding-top: 3% !important;padding-bottom: 3% !important;}&#8221;]<\/p>\n<p style=\"text-align: left; margin-bottom: 0px;\"><span style=\"color: #003e59;\">Check out the latest <\/span><span style=\"color: #003e59;\">news on laws and <\/span><span style=\"color: #003e59;\">regulations.<\/span><\/p>\n<p>[\/vc_column_text][\/vc_column][\/vc_row][vc_row full_width=&#8221;stretch_row_content_no_spaces&#8221; equal_height=&#8221;yes&#8221; content_placement=&#8221;middle&#8221; conditional_render=&#8221;%5B%7B%22value_role%22%3A%22administrator%22%7D%5D&#8221; css=&#8221;.vc_custom_1692799876407{margin-top: 0px !important;margin-bottom: 25px !important;border-top-width: 2px !important;border-bottom-width: 2px !important;padding-top: 22px !important;padding-right: 10% !important;padding-bottom: 22px !important;padding-left: 10% !important;border-top-color: #bc9640 !important;border-top-style: solid !important;border-bottom-color: #bc9640 !important;border-bottom-style: solid !important;}&#8221;][vc_column width=&#8221;1\/2&#8243; conditional_render=&#8221;%5B%7B%22value_role%22%3A%22administrator%22%7D%5D&#8221; css=&#8221;.vc_custom_1674353033684{margin-top: 0px !important;margin-bottom: 0px !important;padding-top: 0px !important;padding-bottom: 0px !important;}&#8221; offset=&#8221;vc_col-xs-6&#8243;][vc_column_text css=&#8221;.vc_custom_1674242948387{margin-top: 0px !important;margin-bottom: 0px !important;padding-top: 0px !important;padding-bottom: 0px !important;}&#8221;]<\/p>\n<p style=\"text-align: left;\"><span style=\"color: #003e59;\">Insights<\/span><\/p>\n<p>[\/vc_column_text][\/vc_column][vc_column width=&#8221;1\/2&#8243; css=&#8221;.vc_custom_1674353042854{margin-top: 0px !important;margin-bottom: 0px !important;padding-top: 0px !important;padding-bottom: 0px !important;}&#8221; conditional_render=&#8221;%5B%7B%22value_role%22%3A%22administrator%22%7D%5D&#8221; offset=&#8221;vc_col-xs-6&#8243;][vc_column_text css=&#8221;.vc_custom_1700240026568{margin-top: 0px !important;margin-bottom: 0px !important;padding-top: 0px !important;padding-bottom: 0px !important;}&#8221;]<\/p>\n<p style=\"text-align: right;\"><span style=\"color: #003e59;\"> <a href=\"https:\/\/wsclegal.com\/en\/insights\/\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-5363\" src=\"https:\/\/wsclegal.com\/wp-content\/uploads\/2023\/01\/flecha.png\" alt=\"\" width=\"20\" height=\"16\" \/><\/a>\u00a0 Back<\/span><\/p>\n<p>[\/vc_column_text][\/vc_column][\/vc_row][vc_row full_width=&#8221;stretch_row_content_no_spaces&#8221; conditional_render=&#8221;%5B%7B%22value_role%22%3A%22administrator%22%7D%5D&#8221; el_class=&#8221;sec-top&#8221; css=&#8221;.vc_custom_1675395705007{margin-top: 0px !important;margin-bottom: 0px !important;padding-top: 0px !important;padding-right: 10% !important;padding-bottom: 0px !important;padding-left: 10% !important;}&#8221;][vc_column][vc_single_image image=&#8221;9263&#8243; img_size=&#8221;&#8221; alignment=&#8221;center&#8221; css=&#8221;.vc_custom_1702652543160{margin-top: 0px !important;margin-bottom: 0px !important;padding-top: 0px !important;padding-bottom: 0px !important;}&#8221;][\/vc_column][\/vc_row][vc_row conditional_render=&#8221;%5B%7B%22value_role%22%3A%22administrator%22%7D%5D&#8221; el_class=&#8221;internapost margenmob&#8221; css=&#8221;.vc_custom_1674404868551{padding-top: 50px !important;}&#8221;][vc_column width=&#8221;4\/5&#8243;][vc_column_text]<\/p>\n<h1><span style=\"color: #003e59;\">Making Way for the New Knowledge Economy: More Tech, Less Tax<\/span><\/h1>\n<p>Legislators often struggle to keep pace with technology but that does not stop them from trying. Argentina\u2019s capital, the City of Buenos Aires, has emerged as a hub for information and communication technologies, creating a home for the promotion and development of such business in its new Technological District[1]. The country and its capital have worked hard to attract investment and to foster growth in the sector. A new statutory framework represents the federal government\u2019s latest effort to enable knowledge-based industries to flourish and to incentivize investment.[\/vc_column_text][vc_custom_heading text=&#8221;The Knowledge Economy Law&#8221; use_theme_fonts=&#8221;yes&#8221; skin=&#8221;primary&#8221; show_border=&#8221;yes&#8221; border_skin=&#8221;primary&#8221; border_size=&#8221;xs&#8221;][vc_column_text]On June 10, 2019, the National Congress enacted the <em>R\u00e9gimen de Promoci\u00f3n de la Econom\u00eda del Conocimiento<\/em> (the \u201cKnowledge Economy Law\u201d)<a href=\"#_ftn1\" name=\"_ftnref1\">[2]<\/a> to furnish meaningful tax benefits to qualifying businesses.\u00a0The Knowledge Economy Law reboots and expands on an earlier \u201cSoftware Industry Law\u201d, which\u00a0granted\u00a0several\u00a0federal tax benefits to software companies but expires in December 2019.<a href=\"#_ftn2\" name=\"_ftnref2\">[3]<\/a> The\u00a0new\u00a0law\u00a0enlarges\u00a0the\u00a0pool\u00a0of beneficiaries\u00a0to\u00a0include\u00a0industries such as biotech,\u00a0artificial intelligence (AI), and aerospace.<a href=\"#_ftnref1\" name=\"_ftn1\"><\/a>[\/vc_column_text][vc_custom_heading text=&#8221;The Inclusive Nature and Tax Stability of the Knowledge Economy Law&#8221; use_theme_fonts=&#8221;yes&#8221; skin=&#8221;primary&#8221; show_border=&#8221;yes&#8221; border_skin=&#8221;primary&#8221; border_size=&#8221;xs&#8221;][vc_column_text]The more inclusive Knowledge Economy Law recognizes the increasing diversity, growth,\u00a0and prosperity of\u00a0other\u00a0knowledge-based\u00a0industries. It provides for <strong>tax stability<\/strong> by which a beneficiary\u2019s total tax burden will be locked in at the time of qualification and will not increase so long as the taxpayer continues to qualify under the law. By locking in the tax burden for federal taxes, the government is signaling its appetite for long-term investments that digital and information-based industries need to succeed.[\/vc_column_text][vc_custom_heading text=&#8221;Tax Incentives and Benefits under the Knowledge Economy Law&#8221; use_theme_fonts=&#8221;yes&#8221; skin=&#8221;primary&#8221; show_border=&#8221;yes&#8221; border_skin=&#8221;primary&#8221; border_size=&#8221;xs&#8221;][vc_column_text]In addition to tax stability, qualifying taxpayers will\u00a0enjoy a <strong>reduced income tax\u00a0rate<\/strong> (15% as compared to the general corporate rate of 25% for FY 2020).\u00a0The law also exempts qualifying beneficiaries from\u00a0withholding or collecting on account of VAT (which, at 21%, is a meaningful incentive).\u00a0Perhaps even more importantly, qualifying ttaxpayers\u00a0will\u00a0enjoy <strong>payroll benefits.<\/strong> These\u00a0payroll benefits translate to a lowering of an employer\u2019s\u00a0contributions and a one-time tax credit\u00a0to\u00a0apply toward\u00a0federal\u00a0payroll\u00a0taxes.\u00a0Finally,\u00a0the\u00a0Knowledge Economy Law\u00a0allows companies to receive a\u00a0<strong>credit\u00a0for foreign\u00a0taxes<\/strong> paid,\u00a0regardless of whether\u00a0a double tax\u00a0treaty applies.[\/vc_column_text][vc_custom_heading text=&#8221;Requirements and Commitments for Qualification under the Knowledge Economy Law&#8221; use_theme_fonts=&#8221;yes&#8221; skin=&#8221;primary&#8221; show_border=&#8221;yes&#8221; border_skin=&#8221;primary&#8221; border_size=&#8221;xs&#8221;][vc_column_text]In exchange for these various benefits, the qualifying taxpayer agrees to contribute a portion of its a\u00a0pooled fund\u00a0used to\u00a0support\u00a0early-stage\u00a0development of other\u00a0entrepreneurs.\u00a0\u00a0The taxpayer must also register as a beneficiary under the Knowledge Economy Law.<a href=\"#_ftn1\" name=\"_ftnref1\">[4]<\/a><\/p>\n<p>The Knowledge Economy Law\u00a0is scheduled to\u00a0apply\u00a0through\u00a02029.\u00a0To qualify, the taxpayer needs to\u00a0carry out recognized\u00a0\u201cknowledge-based activities\u201d.<a href=\"#_ftn2\" name=\"_ftnref2\">[5]<\/a>\u00a0Assuming taxpayer activity qualifies, it must\u00a0certify its satisfaction of\u00a0at least two of the\u00a0following\u00a0three\u00a0requirements:<\/p>\n<ul>\n<li>Continuous improvements in the quality of services, products, and\/or processes;<\/li>\n<li>Minimum spend of 3% of total revenue on Research and Development or 8% of total payroll toward employee training;<\/li>\n<li>At least 13% of total revenue from qualifying activities is sourced from the export of goods or services.<\/li>\n<\/ul>\n<p><a href=\"#_ftnref1\" name=\"_ftn1\"><\/a>[\/vc_column_text][vc_custom_heading text=&#8221;Argentina&#8217;s Potential in the Knowledge Economy and Growth Prospects&#8221; use_theme_fonts=&#8221;yes&#8221; skin=&#8221;primary&#8221; show_border=&#8221;yes&#8221; border_skin=&#8221;primary&#8221; border_size=&#8221;xs&#8221;][vc_column_text]The knowledge economy, though still in infancy, offers Argentina a chance to become a leader in information and communication technology. The\u00a0country is\u00a0already\u00a0home to four of Latin America\u2019s nine \u201cunicorns\u201d\u00a0(privately\u00a0held startups valued at over US$1 billion).\u00a0To read more on the Knowledge Economy Law\u2019s effect on tech \u201cunicorns,\u201d see WSC\u2019s Pablo Sylvester\u2019s click <a href=\"https:\/\/www.eltribuno.com\/salta\/nota\/2019-6-28-0-0-0-una-ley-para-los-unicornios\">here<\/a>.\u00a0The Knowledge Economy Law looks to germinate more of these giants, with the government projecting\u00a0an\u00a0export\u00a0revenue\u00a0increase of around\u00a0US$15 billion by 2030\u00a0and\u00a0the creation of\u00a0hundreds of thousands of jobs.<a href=\"#_ftn1\" name=\"_ftnref1\">[6]<\/a>[\/vc_column_text][vc_custom_heading text=&#8221;Footnotes&#8221; font_container=&#8221;tag:h3|text_align:left&#8221; use_theme_fonts=&#8221;yes&#8221; skin=&#8221;primary&#8221; show_border=&#8221;yes&#8221; border_skin=&#8221;primary&#8221; border_size=&#8221;xs&#8221;][vc_column_text][1]<a href=\"https:\/\/www.buenosaires.gob.ar\/distritoseconomicos\/distritotecnologico\/distrito-tecnologico\">https:\/\/www.buenosaires.gob.ar\/distritoseconomicos\/distritotecnologico\/distrito-tecnologico<\/a><\/p>\n<p>[2] Law No. 27,506<\/p>\n<p>[3] The government has yet to regulate the Knowledge Economy Law and the exact contours, such as the duration of the tax stability guarantee, are still to be determined.<\/p>\n<p>[4] El Registro Nacional de Beneficiarios del R\u00e9gimen de Promoci\u00f3n de la Econom\u00eda del Conocimiento.<\/p>\n<p>[5] Software and digital services; audiovisual production and postproduction; biotechnology, bio-economy, biology, biochemistry, microbiology, bioinformatics, molecular biology, neurotechnology and genetic engineering; geoengineering; geological and prospecting services; exportation of professional services; nanotechnology and nanoscience; aerospace and satellite industries; nuclear engineering; automated goods and services.<\/p>\n<p>[6] <a href=\"https:\/\/www.argentina.gob.ar\/noticias\/el-congreso-aprobo-la-ley-que-promueve-la-economia-del-conocimiento\">https:\/\/www.argentina.gob.ar\/noticias\/el-congreso-aprobo-la-ley-que-promueve-la-economia-del-conocimiento<\/a>[\/vc_column_text][\/vc_column][vc_column width=&#8221;1\/5&#8243;][vc_widget_sidebar sidebar_id=&#8221;blog-sidebar&#8221;][\/vc_column][\/vc_row][vc_row conditional_render=&#8221;%5B%7B%22value_role%22%3A%22administrator%22%7D%5D&#8221; el_class=&#8221;sec-top margenmob&#8221; css=&#8221;.vc_custom_1674404924579{padding-top: 3% !important;padding-bottom: 15px !important;background-color: #e8eef5 !important;}&#8221;][vc_column][vc_column_text css=&#8221;.vc_custom_1674348029620{margin-bottom: 0px !important;padding-top: 5% !important;padding-bottom: 0px !important;}&#8221;]<\/p>\n<h2 style=\"text-align: left; margin-bottom: 8px;\"><span style=\"color: #003e59;\">More information<\/span><\/h2>\n<p>[\/vc_column_text][vc_custom_heading text=&#8221;&#8221; use_theme_fonts=&#8221;yes&#8221; skin=&#8221;primary&#8221; show_border=&#8221;yes&#8221; border_skin=&#8221;primary&#8221; border_size=&#8221;xs&#8221;][\/vc_column][\/vc_row][vc_row css=&#8221;.vc_custom_1674404931104{padding-bottom: 15px !important;background-color: #e8eef5 !important;}&#8221; conditional_render=&#8221;%5B%7B%22value_role%22%3A%22administrator%22%7D%5D&#8221; el_class=&#8221;margenmob&#8221;][vc_column width=&#8221;3\/4&#8243;][vc_column_text css=&#8221;.vc_custom_1702652223839{padding-bottom: 0px !important;}&#8221;]<span style=\"color: #3a3a3a;\">This article was prepared by Haris Vrahliotis during her internship at Wiener Soto Caparr\u00f3s.\u00a0 If you would like to discuss this matter, please do not hesitate to contact our expert in Knowledge Economy.<\/span>[\/vc_column_text][\/vc_column][vc_column width=&#8221;1\/4&#8243;][\/vc_column][\/vc_row][vc_row content_placement=&#8221;middle&#8221; css=&#8221;.vc_custom_1674405179900{padding-top: 0px !important;background-color: #e8eef5 !important;}&#8221; conditional_render=&#8221;%5B%7B%22value_role%22%3A%22administrator%22%7D%5D&#8221; el_class=&#8221;margenmob&#8221;][vc_column width=&#8221;1\/6&#8243;][vc_single_image image=&#8221;7374&#8243; img_size=&#8221;&#8221; css=&#8221;.vc_custom_1702652117129{padding-right: 0px !important;padding-left: 0px !important;}&#8221;][\/vc_column][vc_column width=&#8221;2\/6&#8243;][vc_column_text css=&#8221;.vc_custom_1702652199792{padding-top: 5% !important;padding-right: 0px !important;padding-left: 0px !important;}&#8221;]<\/p>\n<h3 style=\"text-align: left; margin-bottom: 8px;\"><a href=\"https:\/\/wsclegal.com\/en\/ourteam\/pablo-sylvester\/\"><span style=\"color: #003e59;\">Pablo Sylvester<\/span><\/a><\/h3>\n<p><a href=\"mailto:mailto:psylvester@wsclegal.com\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-5301\" src=\"https:\/\/wsclegal.com\/wp-content\/uploads\/2023\/01\/Group-17.png\" alt=\"\" width=\"30\" height=\"30\" \/><\/a>\u00a0 \u00a0 <a href=\"https:\/\/www.linkedin.com\/in\/pablo-sylvester-3a611b4\/\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-5678 \" src=\"https:\/\/wsclegal.com\/wp-content\/uploads\/2023\/01\/Group-10.png\" alt=\"\" width=\"32\" height=\"28\" \/><\/a>[\/vc_column_text][\/vc_column][vc_column width=&#8221;1\/2&#8243; 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It is not intended to provide legal advice or an exhaustive analysis of the issues it mentions.<\/span><\/p>\n<p>[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>[vc_row full_width=&#8221;stretch_row_content_no_spaces&#8221; content_placement=&#8221;middle&#8221; css=&#8221;.vc_custom_1694620103250{margin-top: 0px !important;margin-right: 0px !important;margin-bottom: 0px !important;padding-top: 0px !important;padding-bottom: 0px !important;padding-left: 10% !important;background-color: #e8eef5 !important;}&#8221; conditional_render=&#8221;%5B%7B%22value_role%22%3A%22administrator%22%7D%5D&#8221; el_class=&#8221;titulopostcheckout&#8221;][vc_column css=&#8221;.vc_custom_1674106037719{margin-top: 0px !important;margin-bottom: 0px !important;padding-top: 0px !important;padding-bottom: 0px !important;}&#8221; conditional_render=&#8221;%5B%7B%22value_role%22%3A%22administrator%22%7D%5D&#8221;][vc_column_text css=&#8221;.vc_custom_1701128413385{margin-top: 0px !important;margin-bottom: 0px !important;padding-top: 3% !important;padding-bottom: 3% !important;}&#8221;] Check out the latest news on laws and regulations. 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