PROMOTION OF THE SOFTWARE INDUSTRY
Amend Law No 25,922. Sanctioned: July 27, 2011 Enacted: August 17, 2011
The Senate and Chamber of Deputies of the Argentine Nation, meeting in Congress, etc., are sanctioned by law:
Article 1-Substitute the text of Article 1 (1) of Law 25,922 by the following:
Article 1: Create a System of Promotion of the Industry of the Software that will govern all the territory of the Republic of Argentina with the scope and limitations established in this law and the regulatory norms that in its consequence dictate the National Executive Branch, which will be effective until December 31, 2019. Those interested in joining the system established by this law must comply with all the fees required by the present law.
ARTICLE 2-Substitute the text of Article 2 of Law 25,922 by the following:
Article 2: Legal persons formed in the Republic of Argentina or entitled to act within their territory who develop in the country and for their own account as principal activities may be attached to this regime. defined in Article 4 of this Law and which comply with at least two (2) of the following conditions, in terms determined by the implementing authority: (a) Accreditation of expenditure on research and software development activities; (b) Accreditation of a recognised quality standard applicable to software products or processes, or the development of activities aimed at obtaining the same; c) Realization of software exports; in these cases they must necessarily be registered in the register of exporters of services that the Federal Administration of Public Revenue, an autarquic entity in the orbit of the Ministry of Economy and Public Finance, will create to this end.
ARTICLE 3-Substitute the text of Article 3 (3) of Law 25,922 by the following:
Article 3: Legal persons shall be considered beneficiaries of this law from their registration in the register of beneficiaries of the Software Industry Promotion Scheme enabled by the implementing authority, by the the term of the present regime, and subject to compliance with the conditions laid down in Article 2 of this Law.
The date of registration shall be deemed to be the date of publication in the Official Gazette of the administrative act which declares it registered. Empower the implementing authority to conclude the respective conventions with the provinces which adhere to the regime established by this law, in order to facilitate and ensure the registration of the legal persons involved in each provincial jurisdiction in the register of beneficiaries entitled in the first subparagraph. The Federal Administration of Public Revenue, an autarquic entity in the orbit of the Ministry of Economy and Public Finance, will verify, in the field of its competences, the fulfilment of the conditions stipulated in Article 2 of the present the law on the part of the beneficiaries, and shall regularly inform the implementing authority of the relevant effects.
ARTICLE 4-Substitute the text of Article 7 (7) of Law 25,922 by the following:
Article 7: The beneficiaries of this scheme shall enjoy fiscal stability on the basis of the term of the present promotional framework. Fiscal stability reaches all national taxes, including direct taxes, taxes and tax contributions that are taxable persons to the registered beneficiaries. Fiscal stability means that beneficiaries will not be able to increase their national total tax burden from their registration in the register of beneficiaries of the Software Industry Promotion Scheme enabled by the application authority.
ARTICLE 5-Substitute the text of Article 8 of Law 25,922 by the following:
Article 8: The beneficiaries of this law may convert to a tax credit bonus that is not transferable up to seventy percent (70%) of the employer's contributions that they have actually paid on the total wage payroll of the company for the social security systems and subsystems referred to in laws 19.032, 24.013 and 24.241 and their amendments. In the case of beneficiaries who fall within the circumstances described in Article 11 of this Law, the benefit shall only cover the employer's contributions to the activities promoted by the present regime. Beneficiaries may use such vouchers for the cancellation of national taxes which originate in the software industry, in particular the value added tax and other national taxes and their advances, in the event of proceeding, excluding the income tax. Without prejudice to the provisions of the preceding subparagraph, beneficiaries may apply such tax credit vouchers for the cancellation of the profit tax only by a percentage not higher than the percentage of export reported by the beneficiaries. in the form of a sworn declaration, in accordance with the conditions laid down by the implementing authority. The tax credit bond set forth in this article shall not be computable to its beneficiaries for the determination of net profit on the income tax. Also, such a bonus may not be used to cancel debts prior to the actual incorporation of the beneficiary into the present law and, in no case, any balances in his favor will result in refunds or refunds by the National State.
ARTICLE 6-Incorporation following Article 8 of Law 25,922 the following article:
Article 8º: The beneficiaries of this scheme shall not be subject to any withholding tax or value added tax. In the light of the above, the Federal Administration of
Public Revenue, an autarquic entity in the field of the Ministry of Economy and Public Finance, will issue the respective constancy of non-retention.
Article 7-Substitute the text of Article 9º of Law 25,922 by the following:
Article 9: The beneficiaries of this law will have a reduction of sixty percent (60%) in the total amount of income tax corresponding to the activities promoted in each financial year. This benefit shall be applicable to both the Argentine and foreign source earnings on the terms established by the implementing authority.
ARTICLE 8-Substitute the text of Article 10 of Law 25,922 by the following:
Article 10: Translate three (3) years of registration in the register of beneficiaries of the Software Industry Promotion Scheme enabled by the implementing authority, the beneficiaries must have the quality certification stipulated in Article 2 to maintain its status as such. Otherwise, the provisions of Article 20 of this Law shall apply.
ARTICLE 9-Incorporate following Article 10 of Law 25,922 the following article:
Article 10a: All those registered in the National Register of Producers of Software and Information Services created by resolution 61 dated May 3, 2005 of the Secretariat of Industry, Commerce and Small and Medium Enterprises of the former Ministry of Economy and Production or whose applications for registration have completed all the requirements corresponding to the moment of entry into force of this article, will be considered according to the rules in force on the date of their submission or registration, unless they expressly and (a) to be reregistered in the register of beneficiaries of the Software Industry Promotion Scheme enabled by the implementing authority within the ninety (90) days of the entry into force of this Article, by means of the a form to be established by the implementing authority for such purposes. The benefits granted to those registered in the National Registry of Producers of Software and Information Services created by Resolution 61/05 of the Secretariat of Industry, Commerce and Small and Medium Enterprises of the former Ministry of Economy and Production prior to the entry into force of this Article and which have not exercised the option of the preceding paragraph, shall continue to remain in the terms in which they were conceived.
ARTICLE 10. -Replace the text of Article 20 of Law 25,922 by the following:
Article 20: Failure to comply with the provisions of this regime shall give rise to the application, jointly or individually, of the following penalties, without prejudice to those which may correspond to the application of criminal law: Suspension of the enjoyment of the benefits of this scheme for the duration of the non-compliance. This suspension may not be less than three (3) months and not greater than one (1) year. During the suspension, the tax credit bonus for the cancellation of national taxes may not be used; b) Revocation of the registration in the register of beneficiaries; c) Payment of the non-paid taxes, with more of their interests and accessories; d) Return to the implementing authority of the tax credit bonus if it has not been applied;
e) Disablement to register again with the beneficiary register. The legal consequences contained in this Article may be applied in whole or in part and, where the application of sanctions is concerned, account must be taken of the seriousness of the infringement, its economic entity and the the company's background in the compliance with the scheme. To beneficiaries who do not maintain compliance with at least two (2) of the conditions laid down in Article 2 of this Article, the suspension provided for in point (a) of this Article shall be applied for the duration of the failure. After the maximum period of suspension of one (1) year provided for in that subparagraph, the implementing authority shall revoke the registration of the beneficiaries in accordance with the provisions of point (b) of the referenced article. The implementing authority shall determine the procedure for the application of the penalties provided for in this Article.
ARTICLE 11. -replace the text of Article 24 of Law 25,922 by the following:
Article 24: The implementing authority, by itself or through national universities or specialised bodies, shall carry out the audits, verifications, inspections, controls and evaluations which are necessary for the purpose of verifying the due compliance with the obligations and commitments made by the beneficiaries and, where appropriate, the maintenance of the conditions that would have enabled their framing in the system, and the results of the annual report to the Congress of the Nation of the same. Such information shall be made from the third year of the law. The abovementioned tasks will be met by the beneficiaries through the payment of a contribution, which will be applied on the amount of the tax benefits awarded in relation to the scheme. The implementing authority should be empowered to fix the corresponding value of the contribution to be applied, as well as to determine the procedure for its payment. Failure to comply with the payment by the beneficiaries shall immediately give rise to the suspension provided for in Article 20 (a), without prejudice to the application of the other penalties, in the case of a corresponding one. The funds raised for the payment of the contribution set out in this Article shall be affected by the tasks referred to in the first paragraph of this Article.
ARTICLE 12. -This law shall apply from the day following that of its publication in the Official Gazette.
ARTICLE 13. -Contact the national executive branch. GIVEN IN THE SESSION HALL OF THE ARGENTINE CONGRESS, IN BUENOS AIRES, AT THE TWENTY-SEVEN DAYS OF THE MONTH OF JULY OF THE YEAR TWO THOUSAND ELEVEN. -REGISTERED UNDER NO. 26,692-JULY C. C. COBOS. -EDUARDO A. FELLNER. -Enrique Hidalgo. -Luis G. Borsani.
Date of publication: 18/08/2011