Bill Seeks to Extend the Software Law

On May 4, 2018 Senators Carlos Alberto Caserio and Miguel Ángel Pichetto filed Draft Bill S-1429/18 (the “Bill”) which would extend the term established in Section 1 of the Software Law No. 25,922 (the “Law”), a legislation passed in 2004 to provide tax benefits and foster growth of the software industry.

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.

Currently, Section 1 of the Law establishes a term expiring December 31, 2019. If the Bill is passed, this Section would be amended and the term of the Law would be extended to December 31, 2030. The Bill does not propose any other modifications to the Law, so all current benefits would remain unchanged.

The Bill mentions the existence of provincial regulations, in the City of Buenos Aires and the province of Córdoba for example, which motivated strategic agreements that led to concrete tax benefits and to the creation of employment opportunities.

The Bill argues that the benefits granted by the Law allowed software companies to develop, and led to substantial growth of this industry. In this context, it seeks to provide a stable legal framework, fostering investment and the creation of highly-skilled employment opportunities.