Sign up for tax alert emails    GTNU homepage    Tax newsroom    Email document    Print document    Download document

April 1, 2021
2021-5387

Argentina federal tax authorities issue regulations on the procedure for registering for promotional regime for knowledge-based economy

The resolution contains the procedure taxpayers must follow to register for the regime. It also provides information on how to apply the tax credit bonds against federal taxes.

On 22 March 2021, Argentina’s federal tax authorities (AFIP for the Spanish acronym) published, in the Official Gazette, General Resolution 4949/2021 (Resolution 4949), which contains the regulations establishing the procedure for taxpayers to register for the promotional regime and how to use the tax credits bonds issued by National Direction of Development for the Knowledge-Based Economy (National Direction). For more information on this regime, see EY Global Tax Alert, Argentina issues regulations for companies applying for promotional regime for knowledge-based economy, dated 23 February 2021.

Background

On 26 October 2020, Argentina enacted Law 27,570, which amended the promotional regime by imposing new requirements to qualify for the regime and modifying certain benefits. Decree 1034, issued on 21 December 2020, clarified the requirements for qualifying for the regime, the regime's tax benefits and the fees to be paid by companies participating in the regime.

Resolution 4949

Resolution 4949 regulates the procedure taxpayers must follow to register for the promotional regime and details how taxpayers may use the tax credit bonds to offset federal taxes.

Registration

Eligible taxpayers must register for the regime through the “Promotional Regime for the Knowledge-Based Economy – Registration Request/Annual Revalidation” service on the AFIP’s website. The AFIP will verify by means of systemic controls whether the taxpayer complies with tax and social security requirements. Subsequently, those taxpayers will have to complete and file additional forms and affidavits through the Remote Procedures Platform (TAD, in Spanish).

Taxpayers that benefitted from the expired software promotion regime established by Law 25,922 and have confirmed their election to participate in the knowledge-based economy regime must formally register for the regime through the National Register of Beneficiaries of the Knowledge-Based Economy Regime (Registro Nacional de Beneficiarios del Régimen de Promoción de la Economía del Conocimiento o Registro EDC, in Spanish).

Obligations

Taxpayers that are accepted into the regime for the knowledge-based economy must declare to AFIP the list of employees that do the promoted activities using one of the specific codes provided for in Resolution 4949.

In addition, the eligible taxpayers must complete Form 1278 through AFIP’s website to comply with the annual reporting obligation concerning the number of employees involved in the promoted activities.

Tax credit bonds

Resolution 4949 details the information AFIP will provide on a monthly basis to the National Direction. The information will allow the National Direction to issue the tax credit bonds taxpayers will use to offset federal taxes.

Taxpayers registered in the promotional regime may use the tax credit bonds against federal taxes or their prepayments of tax through the “Administration of Incentives and Tax Credits” service on the AFIP’s website.

Resolution 4949 clarifies that taxpayers holding tax credit bonds from the expired software promotion regime established by Law 25,922 that are unused by 31 December 2019, will not be able to transfer those bonds to other taxpayers, but will be able to use them to offset their own federal taxes.

_________________________________________

For additional information with respect to this Alert, please contact the following:

Pistrelli, Henry Martin & Asociados S.R.L., Buenos Aires

Ernst & Young LLP (United States), Latin American Business Center, New York

Ernst & Young Abogados, Latin American Business Center, Madrid

Ernst & Young LLP (United Kingdom), Latin American Business Center, London

Ernst & Young Tax Co., Latin American Business Center, Japan & Asia Pacific

 
 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 2024, Ernst & Young LLP.

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

Any U.S. tax advice contained herein was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.

 

"EY" refers to the global organisation, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.

 

Privacy  |  Cookies  |  BCR  |  Legal  |  Global Code of Conduct Opt out of all email from EY Global Limited.

 


Cookie Settings

This site uses cookies to provide you with a personalized browsing experience and allows us to understand more about you. More information on the cookies we use can be found here. By clicking 'Yes, I accept' you agree and consent to our use of cookies. More information on what these cookies are and how we use them, including how you can manage them, is outlined in our Privacy Notice. Please note that your decision to decline the use of cookies is limited to this site only, and not in relation to other EY sites or ey.com. Please refer to the privacy notice/policy on these sites for more information.


Yes, I accept         Find out more