On December 30, the Federal Administration of Public Revenues (AFIP, for its acronym in Spanish) introduced clarifications to the Knowledge Economy Promotion law. The measure, enshrined in Resolution 4652/2019, and effective as of December 31, 2019, introduces a new way of registering tax credit bonds and how these are used by beneficiaries, establishing formalities and conditions for their use and transfer.
The beneficiaries of the new regime must be registered in a National Register in order to file and use tax credit vouchers through the service known as the Knowledge Economy Promotion System – Annual Registration/Revaluation Request which is available on the AFIP website.
The treasury will provide information on employer contributions declared by employers benefiting from the regime to the Secretariat of Entrepreneurs and Small and Medium-sized Enterprises on a monthly basis so that the tax credit voucher can be properly calculated.
This mechanism is a tax break consisting of a fiscal credit bond that can be transferred just once, equivalent to 1.6 % of the amount of the employer contributions that would have been paid. This can be used to pay off advances and/or the balances of Income Tax and VAT tax statements.
In Resolution 4656/2019, the AFIP also established the requirements and conditions to be met by those adhering to the afore-mentioned regime, so that they can request certificates excluding them from the VAT withholding system, as well as similar tax collection and/or VAT payment regimes. See the certificate here.
The exclusion certificate will only be issued if the subjects involved have been registered and authorized on the National Register of Beneficiaries of the System for the Promotion of the Knowledge Economy by the time that their application is submitted.