New Bills Seek to Extend the Duration of the Software Law

In August 2018, bills Nos. 4741-D-2018, 5158-D-2018 and 5237-D-2018 (the “Bills”) were filed in the House of Representatives. The Bills seek the modification of Section 1 of Software Law No. 25,922 (the “Law”), which was enacted in 2004 and which establishes tax benefits to promote the software industry.

Similarly to another bill filed in the Senate, these new Bills intend to extend the  duration of the  existing regime to foster the software industry originally established by the Law, which will be in force until December 19, 2019.

If either of the Bills is approved, Section 1 of the Law would be modified and the existing framework would be in force until December 31, 2030 (Bills Nos. 4741-D-2018, 5158-D-2018) or December 31, 2028 (pursuant to Bill No. 5237-D-2018).

As mentioned in a previous edition (see "Bill Seeks to Extend the Software Law"), this regime is directed at individuals and companies incorporated in Argentina whose main activity is within the software industry. This includes the creation, design, development, production, implementation and servicing of software, as well as any other activity which, in general, contributes to the progress of the industry, with the limits and requirements provided by the law.

The Bills highlight the growth that the software industry has had in the last few years, mainly in connection with the rise in exports and in the creation of new jobs. They also emphasize that the benefits granted by the Law are subject to the fulfillment of certain conditions.

In view of the above, their intention is to bring legal certainty to the software industry, so as to continue promoting investment and the creation of new jobs in this sector.