Reading Time: 2 minutes Due to the stunning performance of the industry the goverment steps up with a law that providesReading Time: 2 minutes
Due to the stunning performance of the industry the government steps up with a law that provides tax benefits to software exporter companies. In the last six years this sector had the highest growth in Argentina.
By: Andrea Sánchez
Cristina Fernández de Kirchner, president of Argentina, will enact the “Law for the promotion of the software industry and computer services”. Among many advantages this law gives greater tax benefits to the exporter companies and encourages the entry of small and medium enterprises. These incentives will eventually translate in reductions in operations cost and rates for its clients.
This will be announced in the popular technology fair, Tecnópolis. The Chamber of Software and Computer Services (CESSI) will also take part in the announcement.
According to information provided by the Ministry of Industry, in the last six years, the software sector was the one that had the greatest growth in Argentina: it increased its volume in a 278%, its exports in a 329% and its employment level in a 240%. This is a key sector and an essential tool for an increasingly competitive industry.
Today Argentina exports software and computer services to more than 45 countries, mostly to Latin America, but also to US, Canada, Italy and Spain.
The law seeks to promote the sector composed mainly by SMEs. It also allows exporting firms to cancel the income tax with the tax voucher they receive at this moment, equivalent to 70% of employer contributions they make.
It is estimated that by 2020 sales in software industry and computer services will multiply by three and reach a billing of U$S 7.400 millions, a doubling of jobs (130.000 people will be employed in the field), exports will be quadrupled and sales to the rest of the world will be close to U$S 3.000 millions (40% of the total sales of the sector).
This type of initiatives reflects the importance that the software industry acquired in the last decade. This is not only recognized but also encouraged by the local government. Furthermore, the promulgation of the software law in Argentina will promote a greater growth in the area.
Comments? Contact us for more information. We’ll quickly get back to you with the information you need.Go Back