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Regulation of the “Knowledge Economy Promotion Regime”: Decree No. 1034/2020
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Latest Firm's PressBeccar Varela Through National Executive Branch Decree No. 1034/2020, published in the Official Gazette on December 21, 2020: (i) Regulations of Law No. 27,506 and its amendments -also known as “Knowledge Economy Promotion Regime” (hereinafter, the “Regime” or the “Law”)- were approved; and (ii) the export duties applicable to the provision of services included in subparagraph c), of paragraph 2, of section 10 of Law No. 22,415 (Customs Code), carried out by entities registered in the “National Register of Beneficiaries of the Knowledge Economy Promotion Regime” (hereinafter, the “Register”), were reduced to 0%. Regarding the Regime regulations, it was established, among other issues, the following:
Training: the investments that the applicant makes in terms of time, money or resources destined to the training provided to the personnel and/or third parties will be taken into account. Such investments must reach the percentage, set by the Law, of the total payroll corresponding to the employees affected to the promoted activity. Research and Development (R&D): the sum of expenses made for R&D will be computed, in the terms established by the EA, who will also determine which are the expenses that may not be considered for the fulfillment of this requirement. Exports: this requirement will be considered accomplished when the exports are related to goods and/or services developed as a part of any of the promoted activities, and when such exports are invoiced with E Type invoices. Exports also must represent for the applicant, at least, the minimum turnover percentages established in the Regime.
The Decree entered into force on December 22, 2020.
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