1. General considerations
On 1 November 2022, the Decree was published in the Provincial Official Gazette, regulating the Law on adhesion to the National Regime for the Promotion of the Knowledge Economy established by National Law No. 27,506. The Law grants tax benefits to enterprises that apply in their business activity the use of knowledge and digitalization to obtain goods, provide services and improve processes.
The Law creates the so-called NECo and its registry ("NECo Registry"), in which enterprises that may access the benefits of the Law must register. To this end, enterprises must prove their inclusion in the National Registry of Beneficiaries of the National Regime for the Promotion of the Knowledge Economy.
2. Tax benefits
The Decree grants certain "promoted activities" described in the Law an exemption from the turnover tax corresponding to the revenue obtained by enterprises from such activities in the following amounts:
- Up to 100% of their revenue, for micro enterprises
- Up to 80% of their revenue, for small and medium enterprises
- Up to 5% of their revenue, for large enterprises
The continuity of the tax benefits from the entry to the NECo Registry will be revalidated every two years and tax benefits will be applicable during the effectiveness of the National Regime for the Promotion of the Knowledge Economy established by National Law No. 27,506 until 31 December 2029.
In this respect, the taxpayers registered in the NECo Registry will obtain the stability of the benefits established by the Law, with respect to their "promoted activities" from the date they are notified of the administrative act stating their registration, in accordance with the requirements established by the Authority of Application.
3. Taxpayers that could have access to the benefits of the Law and the Decree
Enterprises that are located in the province of Buenos Aires under the terms established by the Authority of Application and perform any of the activities described in the Law that have the current provision that supports their registration in the National Regime for the Promotion of the Knowledge Economy and their registration in the NECo Registry.
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