In a joint meeting held last Tuesday, the Chamber of Deputies Communications and Budget Committees began debating the Knowledge Economy bill, backed by the Ministry of Production.  The draft was introduced on April 3 by Deputies Luciano Laspina (PRO-ruling party), Marco Lavagna (Frente Renovador-opposition bloc) and Juan Brügge (Córdoba Federal-opposition). Brügge and Laspina also chair the above-mentioned committees. The next meeting is scheduled for Tuesday.

The Knowledge Economy Bill proposes to extend the benefits of the current Regime for the Promotion of the Software Industry, in force until December 31, 2019, to other industries. Among them, digital and computer services, film and TV production and post-production, biotechnology, bioeconomics or bioinformatics, manufacturing, development, maintenance and introduction of solution-oriented goods and services.

Companies will be able to obtain frozen tax rates until December 31, 2029, reductions in employer contributions, a tax credit bond equivalent to 1.6 times the amount of employer contributions, a 15% income tax rate, exemption from Value Added Tax withholding and payment on account of income tax. The committees heard from businesspeople, entrepreneurs, investors and software companies who endorsed the bill and stressed the importance of the current promotion regime in strengthening the Argentine software industry.