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Argentina Amends Conditions for the Regime for the Promotion of the Knowledge Economy — Orbitax Tax News & Alerts

Argentina has published Resolution 833/2021 of 23 November 2021, which amends certain aspects of the Regime for the Promotion of the Knowledge Economy in order to provide clarification and improve the application of the regime. This includes changes regarding the different conditions for the regime.

One of the key changes concerns the employee training condition, which is met when training expenses represent a certain percentage of gross salary depending on the size of the company. To meet this condition, it is provided that the salary of new hires from the time of registration for the regime may be included in determining the training expense amount provided that the employment contract is for an indefinite period and the employee has not previously been exposed to the theoretical or practical knowledge of the activities in which the promoted undertaking is engaged. The amount that may be included is limited to the first 12 months of salary for the employee.

Another important change is the expansion of the scope of R&D activities for the purpose of the regime. This includes the addition of activities to evaluate technical feasibility and economic viability.