The Official Bulletin of January 20, 2020, published Resolution 30/2020 of the Ministry of Productive Development, leaving without effect Resolutions 1084/2019 of the former Ministry of Production and 449/2019 of the former Secretariat of Entrepreneurs and SMEs, the latter establishing the Registration process for the beneficiary registry of the Knowledge Act regime. The repeal is justified by the need to “review and adapt the operability and forecasts” contained in Resolution 449/2019, in a context in which the Administration needs to prioritize tax revenues. This Resolution suspends the practical application of the regime of the Knowledge Act, and although it does not contain provisions as to the beneficiaries of the Software Act that have submitted their will to continue in the EDC regime, they will not have the possibility practice of moving forward with the process until it is regulated again, and it is uncertain that they may receive any benefit in the interim.
Although the current Administration has repeatedly stated its intention to maintain the regime of the Knowledge Act, it is expected that both its scope and its benefits will be modified in a relevant way. The entire team at Estudio Millé is supporting the Chambers involved to ensure that the Knowledge Act regime is effectively put into practice.
The knowledge industry generates quality employment and exports; it is sustainable, inclusive and federal; taking advantage of a non-consumable material: Argentine talent. The Knowledge Act is the answer to the paradigm shift from the Industrial Age to the Knowledge Age. The 15 years of the Software Law positioned Argentine software companies as relevant global players, multiplying employment and exports, demonstrating that fiscal costs are recovered with an industry that grows and grows over time, unique with full employment in the country. We hope that the dialogue between the Chambers and the Administration will reach a better, just and equitable solution for society and the beneficiaries, which will allow the Knowledge Industry to be developed so that it continues to generate more jobs and exports that our country so needs.