The National Government seeks to promote a "Knowledge Economy Law" that replaces the current Software Law, with the ambitious objective of covering such important areas as robotics and biogenetics.

It is a law project resulting from the collaboration of the Ministry of Production and companies in the innovative sector, with particular encouragement from the Secretary of Entrepreneurs and SMEs.

According to press sources, the bill aims to double employment in the sector and consequently the exports of these activities from the country to abroad. The initiative aims to facilitate the recruitment and training of talent, promote exports and encourage innovation (R&D) and the creation of new ventures [1].

The project aims to benefit knowledge companies with a reduction of income tax and an advance of the non-taxable minimum on social security, in order to encourage new incorporations of trained personnel.

Although pending confirmation - not only legislative, but also from other areas of the Government such as the Ministry of Finance -, the project aims to significantly reduce the rate of income tax (which would be of the order of 15%). In the same way it is projected to simplify and reduce the employer contributions with respect to the Software Law, foreseeing a non-taxable minimum that would be updated, and that would be set in line with the salaries of the sector so that they are always beneficial.

There is expectation regarding the definitions or frames that the law finally receives about the requirements of companies to frame their activity as linked to the "knowledge economy", being that the percentage of the company's billing that is due to the promoted activity (between 50 and 70%)

The project requires as a counterpart a minimum of stability, consisting in maintaining the amount of personnel employed when the promotional benefit is requested, accrediting improvements in the processes, investments in research and training and export goals.

We wish to be able to tell you shortly that the legislative project became a reality with the expected results that will serve our national economy to continue its path of integration to the world.

[1] Diario El Cronista Comercial, December 26, 2018