April 1, 2021
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 March 22, 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 Tax Alerts 2020-2576, 2021-0018, and 2021-0401.
On October 26, 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 December 21, 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 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.
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).
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 December 31, 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.