Knowledge Economy regime (Law 27.506): software, IT services, biotech and audiovisual incentives

Key rules

1. Legal framework at a glance

Note on RG 4949/2021. some secondary summaries for this page mentions ARCA RG 4949/2021. That resolution was repealed by RG 5325/2023 art. 17, "without prejudice to its application to operations carried out while it was in force". RG 5325/2023 is the operative ARCA rule today, and it follows the same structure (Form 1278, payroll codes, bonus prefixes, use against anticipos). Anyone still citing RG 4949 is citing a dead text.

Who is the authority today. Law 27.506 art. 19 (as replaced by Decree 679/2022 art. 15) names the Ministry of Economy "or whoever it designates" at Secretary level or above. Res. 976/2022 designated the Secretaría de Economía del Conocimiento. Res. 1419/2024 art. 1 then delegated the authority's functions to the Secretaría de la Pequeña y Mediana Empresa, Emprendedores y Economía del Conocimiento, and Res. 67/2025 and Res. 68/2025 are signed by that Secretariat. The register itself sits in the Dirección Nacional de Desarrollo de la Economía del Conocimiento (Res. 268/2022 art. 19). Whether any 2026 restructuring has moved the function again was not checked (unconfirmed).

2. Eligible activities (Law 27.506 art. 2)

The law promotes the creation, design, development, production and implementation or adaptation of products and services, and their technical documentation, in these fields (art. 2):

The detailed list of covered activities is Annex I of Res. 268/2022, and the activity codes (CLAE) whose invoicing counts as promoted turnover are in Annex II (Res. 268/2022 arts. 1 and 2, as replaced by Res. 267/2024). The Dirección Nacional may update both lists (art. 2, last paragraph). The Executive may add activities for emerging technologies (Law art. 2, last paragraph). Annex II (the CLAE code list) is published only as an image or PDF annex and is not reproduced in the source files (unconfirmed).

Exclusions. "Self development" does not count toward the 70% turnover test for item a): software made by the company for its own use or for related companies acting as final users (art. 5, as replaced by Law 27.570 art. 3). "Related" follows the General Companies Law 19.550 and art. 14 of the Income Tax Regulation (Decree 1034/2020 Annex art. 3). The company files a sworn statement of final user status using the model in Annex III of Res. 268/2022 (art. 4).

Combining activities. Companies under items a) and e) may add those two activities together, whatever the share of each, to reach 70%. Other promoted activities can then also earn benefits in proportion to their share of turnover, provided items a) and/or e) alone reach 70% (Res. 268/2022 art. 3). For the extra tests, the company meets the percentages of the activity that represents the largest share of promoted turnover; if no activity prevails it may choose the most representative one (art. 3).

Proportionality. The registration decision states which activities are promoted and their proportion of total activity, and the benefits follow that proportion (Decree 1034/2020 Annex arts. 1 II and 5; Res. 268/2022 art. 24(b)). A company that is 80% promoted gets benefits on the promoted 80%, not on the whole business.

3. Who can apply and the entry tests (Law 27.506 art. 4)

3.1 Basic conditions

• Legal person incorporated in Argentina or authorised to act in it (art. 4 I). Individuals and sole traders are not eligible. A foreign company's registered branch is "authorised to act" in Argentina, which on the face of the text allows branches (unconfirmed).
• Up to date with tax, labour, union and social security obligations (art. 4 I). Tax and social security compliance is checked with ARCA data; labour compliance by checking REPSAL (the register of employers with labour sanctions, Law 26.940); union compliance by a clearance certificate from the most representative union or a sworn statement (Decree 1034/2020 Annex art. 2). Form 1278 can only be filed if ARCA shows the company is up to date (Res. 268/2022 art. 22).
• Main activity: promoted activities carried out in Argentina, on its own account (art. 4 I).
• No evasion of a ban: a company that continues, is controlled by, or has substantially the same shareholders and object as a company disqualified under art. 15 is presumed to be trying to evade the ban (Decree 1034/2020 Annex art. 2, last paragraph).

3.2 The 70% turnover test

At least 70% of total turnover of the last year must come from promoted activities (art. 4 II(a)). The regulation measures this over the 12 months before the application (Decree 1034/2020 Annex art. 1 I). Compliance is verified with ARCA invoicing data by CLAE code (Res. 268/2022 art. 2).

A company without promoted turnover yet can apply by proving intensive development of promoted activities incorporated into its products, services or processes (art. 4 II(b)). The authority looks at the strategic character of the firm, the share of staff on promoted activities, the degree of R&D, the existence of formal development units and actual sales of new or improved products (Decree 1034/2020 Annex art. 1 II(a)(ii)). These applicants file the sworn statement in Annex XVII of Res. 268/2022 (art. 2, as replaced by Res. 267/2024). Companies in items a) and e) cannot use this route; they must pass the 70% test (art. 4 II, paragraph after (b)).

3.3 The extra tests: two of three

The company must meet at least two of the following, measured against its promoted activities (art. 4 II, items 1 to 3):

Source: Law 27.506 art. 4 II, as replaced by Law 27.570 art. 2. Size follows art. 2 of Law 24.467 and SEPyME Resolution 220/2019 (Res. 268/2022 art. 6). The sales and headcount thresholds of Resolution 220/2019 are not in the source files (unconfirmed).

Key rules for each test:

• Quality. Either an improvement plan of at least 80 hours run by a national public body with competence in the field or by a consultant certified by INTI as a management technology adviser (Res. 268/2022 art. 8), or a certification under a standard listed in Annex V, issued by a body accredited with the OAA or an IAF MLA signatory (arts. 9 and 10). Annex V lists, among others, ISO 9001, ISO/IEC 27001 (as IRAM-ISO/IEC 27001), ISO/IEC 20000-1, ISO/IEC 27701, CMMI, ISO 13485, ISO/IEC 17025, AS/EN 9100, TPN (Trusted Partner Network) and the ISO/IEC 25000, 29110 and 33000 series; for people, PMI Project Manager, Scrum, IRAM-ISO 17100 and ISO 14950. Certifications required by an Argentine regulator do not count (art. 9). Micro and small companies may use staff competence certifications: one certified person per 1 to 50 promoted staff, two for 51 to 100, and one more per additional 50 (art. 9). A certification "in process" is accepted if obtained within one year of starting (art. 10).
• Training. Measured on the gross payroll of staff on promoted activities, excluding non remunerative items (Res. 268/2022 art. 17). Training must be given with entities of the education system, with exceptions where no offer exists (Law art. 4 II 2.a; Decree 1034/2020 Annex art. 1 II(b)(ii)(1); Res. 268/2022 art. 15). Training for unemployed people under 25 or over 45, women entering formal work for the first time and other vulnerable groups counts double (Law art. 4 II 2.a). In house trainers paid through payroll with the item "Capacitación LEC" count up to 35% of the investment (Res. 268/2022 art. 15). Salaries of new indefinite term hires who are first entering the field can count, up to their first 12 monthly salaries (art. 13).
• R&D. Basic research, applied research and technological development (Res. 268/2022 art. 12, following Res. 4/2021 art. 9). Salaries of R&D staff count in proportion to time, but at most 80% of the required investment. Third party server space counts up to 20% of its cost. Travel, meals, lodging, energy and connectivity do not count; nor do investments funded by non refundable state grants (art. 12). R&D may be done by the company or by ROECyT registered bodies on its behalf (Decree 1034/2020 Annex art. 1 II(b)(ii)(2)).
• Exports. Goods or services from promoted activities, invoiced with Factura E (Decree 1034/2020 Annex art. 1 II(b)(iii)). The percentage is measured on promoted turnover (Res. 268/2022 art. 18), not total turnover as the law says. Exports through intermediaries count if title does not pass to the intermediary (art. 18).

The company may use the last 12 months of spend, matching the period in Form 1278 (Res. 268/2022 art. 7). The older rule that allowed the average of the last 24 months (Res. 4/2021 art. 5) is no longer in Res. 268/2022 (unconfirmed).

3.4 Micro companies under three years old

A micro company less than three years from start of activity (date of VAT registration) only has to show that it carries out a promoted activity in Argentina, on its own account, as its main activity (Law art. 6; Res. 268/2022 art. 35). It files a sworn statement and a detailed description of its business model (Decree 1034/2020 Annex art. 4). If it has no employees, it files through TAD with the sales and export sworn statements and a note confirming it is not registered as an employer (Res. 268/2022 art. 36, as replaced by Res. 267/2024). The authority may ask for proof that the activity is a business model and not just a project (same article).

After four years from registration, or when it stops being micro, whichever is first, it must meet the full art. 4 tests at the next annual filing, using the percentages for its new size at the time of registration (Law art. 6; Res. 268/2022 art. 38). It must request deregistration within 15 business days if it cannot (Res. 268/2022 art. 37). This shortcut is not available for item e) professional services (Law art. 6, last paragraph).

3.5 Size: the MiPyME certificate decides

Since Res. 267/2024 (BO 16 September 2024), size is taken from the MiPyME certificate in force on the application date. A company without a valid certificate, for reasons attributable to it, is treated as large (Res. 268/2022 art. 6, as replaced). The same applies at each annual filing and revalidation (art. 40). This matters: a medium company without a current certificate falls from a 40% to a 20% income tax reduction and faces the large company percentages for the extra tests and the 3.5% FONPEC rate.

4. The benefits in detail

4.1 Benefits by company size

4.2 Stability (art. 7)

Beneficiaries enjoy "stability of the benefits" of the regime for their promoted activities from the date of registration and for the life of the regime, provided they pass the annual checks, audits and biennial revalidation (art. 7, as replaced by Law 27.570 art. 5). This is narrower than general tax stability: it freezes the regime's benefits, not the general tax rates, so a change in the corporate income tax scale or in VAT still applies, and the 40% (or other) reduction is applied to the tax computed under whatever law is then in force.

The quota problem. The bonus credit is subject to a fiscal quota fixed each year by the budget law (art. 8, 9th and 10th paragraphs). When the 2024 quota was exhausted, Res. 67/2025 art. 4 ruled that applications not yet decided when it took effect would, if approved, earn no bonus for 2024; bonuses would start from January 2025 "to the extent there is sufficient quota". The same resolution, in its recitals, invokes the art. 7 stability clause. How the two fit together is not explained. A company registered before the quota ran out arguably has a stronger stability claim than a pending applicant, but no judicial or administrative ruling on the point is in the sources (unconfirmed). Treat the bonus as subject to budget availability.

4.3 Income tax reduction (art. 10)

The reduction is a percentage of the total income tax for the promoted activities, determined each fiscal year: 60% for micro and small, 40% for medium and 20% for large companies. It applies to Argentine and foreign source income (art. 10, as replaced by Law 27.570 art. 8). It applies from the fiscal year starting after the registration date (art. 10, 2nd paragraph). The final amount is what results from the company's income tax return (Decree 1034/2020 Annex art. 10).

Practical points:

• The reduction applies to tax computed under the progressive scale of Income Tax Law art. 73 (25%, 30%, 35% for 2026 brackets; see Corporate income tax). The effective rate after a 40% reduction on a company in the top bracket is therefore about 60% of its scale rate, not a flat 15%.
• If only part of the business is promoted, the reduction applies to the promoted share. How the tax is split between promoted and non promoted income is not detailed in the sources (unconfirmed).
• Former Software Law companies that adhered with effect from 1 January 2020 applied the reduction from the fiscal year starting on or after 1 January 2020 (Decree 1034/2020 Annex art. 19).
• The 7% dividend withholding on distributions is not reduced by the regime.

4.4 Bonus tax credit on employer contributions (arts. 8 and 9)

Base. The bonus is a fixed 70% of the employer contributions actually paid to the four social security subsystems of Laws 19.032 (PAMI), 24.013 (National Employment Fund), 24.241 (pensions) and 24.714 (family allowances), for staff working on promoted activities (Decree 1034/2020 Annex art. 8). Health insurance contributions (obra social) and ART premiums are not in that list and are therefore outside the base. In practice these four subsystems are paid through the unified 18% or 20.40% rate of Law 27.541 art. 19 (see Payroll taxes).

Who counts. Only "direct labour" staff: those whose work the product or service directly depends on. Support staff are excluded (Res. 268/2022 art. 17).

Cap per worker. Since 1 July 2024, the bonus is computed on the full gross salary, but if the salary is 125 units or more of the reference value in art. 28 of Decree 1030/2016, only the part up to that limit counts (Res. 268/2022 art. 85, as replaced by Res. 267/2024 art. 13). The peso value of that unit is not in the source files (unconfirmed). For senior engineers this cap may bite.

80% for new hires. The bonus rises to 80% for new registered hires who are women; travesti, transsexual and transgender persons; professionals with postgraduate studies in engineering, exact or natural sciences; persons with disabilities; residents of "unfavourable zones or less developed provinces"; and former social plan beneficiaries, among other groups the authority may add, provided total headcount exceeds the previously declared level (art. 9, as replaced by Law 27.570 art. 7). People certified as having completed state training programmes in promoted activities are an added group (Res. 268/2022 art. 87). The less developed provinces are listed in Annex XVI of Res. 268/2022, which is an image annex not reproduced in the source files (unconfirmed). The extra benefit lasts at most 24 months from hiring (Decree 1034/2020 Annex art. 9), counted from the month after the hire is registered (F.885) and declared in F.931 (Res. 268/2022 art. 80).

When it starts. From the month after registration (Decree 1034/2020 Annex art. 8) or, under the current text, from the month after notification of the registration decision (Res. 268/2022 art. 77, as replaced by Res. 67/2025 art. 3). The Dirección Nacional issues electronic bonuses monthly, using F.931 data for up to four prior periods; it does not issue for older periods or for periods outside the current budget year (art. 77). Late F.931 filers lose months.

How to use it.

The ARCA payroll codes. Companies accepted into the register (registry code 451; 450 means under analysis and 452 means rejected) declare staff in SICOSS or "Declaración en Línea" with activity codes for art. 8 and art. 9 staff (RG 4949/2021 art. 3, codes 132 and 133). RG 5325/2023 art. 3 keeps the scheme but its code tables did not survive in the Infoleg text (unconfirmed).

4.5 VAT withholding and perception exclusion (art. 11)

Beneficiaries that export from their promoted activities are not subject to VAT withholdings and perceptions (art. 11). ARCA must grant the certificate to beneficiaries with at least one export operation in the three months before registration (Decree 1034/2020 Annex art. 11; RG 4958/2021 art. 2). From the second year in the regime, ARCA checks for at least one export in the 12 months before the request (Res. 268/2022 art. 88).

Procedure: the request follows the general exclusion procedure of RG 2226 (requirements in its art. 4, items a) to g) and j); filing, renewal and validity under its arts. 5 to 7), through the Clave Fiscal service for VAT exclusion certificates, item "Promoción de la Economía del Conocimiento (CNR TECNO)" (RG 4958/2021 arts. 2, 3 and 6). The company must be coded 451. Agents stop withholding only when the company appears on the ARCA website list (art. 7). The exclusion falls if benefits are suspended, registration is revoked or conditions are no longer met (art. 8). The validity period of each certificate follows RG 2226 and was not checked (unconfirmed).

Why it matters: exporters accumulate VAT credits because exports are zero rated. Withholdings and perceptions add to those credits. The exclusion stops the build up at source.

4.6 Export duty on services

Decree 1034/2020 art. 3 set a 0% export duty on service exports (Customs Code art. 10.2(c)) by registered beneficiaries, from their registration (Res. 268/2022 has no equivalent article; the date rule was in Res. 4/2021 art. 18 and is applied by RG 5013/2021 art. 1). On deregistration or revocation, duties at the general rate apply from the date of the request or of the breach (RG 5013/2021 art. 5).

Current relevance. The general export duty on services was set at 5% by Decree 1201/2018 art. 1, "until 31 December 2021" (as replaced by Decree 99/2019 art. 24). The Infoleg updated text shows no extension after that date. On the face of the sources, therefore, no general export duty on services has applied since 1 January 2022, and the 0% rate for beneficiaries has had no practical effect since then (unconfirmed). If a future decree reimposed a duty, the 0% rate for beneficiaries would again matter, and its stability under art. 7 would be the question.

4.7 Foreign taxes (art. 12)

Beneficiaries may deduct, as an expense for income tax purposes, the foreign taxes analogous to income tax that were actually paid or withheld abroad on income from promoted activities, to the extent that income is Argentine source (art. 12, as replaced by Law 27.570 art. 10). This matters because service exports performed from Argentina are usually Argentine source income, so the general foreign tax credit (which applies to foreign source income) would not relieve a client's withholding. Art. 12 converts that leakage into a deduction, not a credit: it lowers taxable income, not tax. The original 2019 text granted a credit ("pago a cuenta"); Law 27.570 changed it to a deduction, although the chapter heading still says "Pago a cuenta del impuesto a las ganancias".

4.8 Combination with other regimes (art. 21)

The benefits can be combined with Law 23.877 art. 9(b) (innovation promotion), Law 24.331 (free trade zones) and Law 26.270 (biotechnology), without the restrictions in those laws, provided each regime's own requirements are met (art. 21).

4.9 FX incentives under Decree 679/2022

Decree 679/2022 created two FX measures:

• Chapter I, investment regime. Exemption from converting in the official FX market up to 20% of foreign direct investment inflows, for export projects of at least US$ 3,000,000 (Decree 679/2022 arts. 3 and 4). The deadline to apply was 30 June 2023, extendable by the Executive to 31 December 2023 (art. 7). It is closed to new applicants.
• Chapter II, export incentive. Registered beneficiaries in good standing can keep in foreign currency 30% of the incremental net export proceeds, measured quarterly against the same quarter of 2021, to pay registered staff working on promoted activities (art. 8). This one has no expiry date in the decree. The BCRA rules implement it at points 2.2.2.2 (services) and 2.6 (certification of the increase by a single nominated bank and a special account) of the consolidated text "Exterior y Cambios" updated to 14 September 2026.

See Exchange controls for the general rule that service export proceeds must be brought in and converted within 20 business days of collection (FX rules point 2.2.1).

5. Obligations, fees and deadlines

5.1 Ongoing requirements

• Headcount. Maintain or increase the number of registered staff on promoted activities declared at registration (art. 4 III). A cut in that headcount lasting more than 60 calendar days after the termination or suspension causes automatic loss of benefits (art. 15 bis(a)). Terminations for trial period, mutual agreement, end of fixed term, end of project, resignation, abandonment, dismissal with cause, absolute disability, disqualification, ordinary retirement, death and staff assignment do not count, nor do leave of absence and job preservation situations (Decree 1034/2020 Annex art. 7). Other terminations must be replaced within 60 days, by staff on promoted activities but not necessarily in the same post (art. 7; Res. 268/2022 art. 41). The comparison is last month of the registration period against last month of each annual period (Res. 268/2022 art. 41).
• Keep two extra tests. Keep at least two of the extra tests at all times. A change of test must be reported within 15 business days, and is only accepted if at least one year has passed since registration or the previous change (Decree 1034/2020 Annex art. 13).
• Annual filing of Form 1278 and the TAD "Acreditación de Cumplimiento Anual" (Res. 268/2022 art. 40).
• Biennial revalidation with increased percentages (Law art. 4 III; Res. 268/2022 arts. 42 and 43).
• Report changes at the annual filing: size, exports, location of activities (art. 40).
• Keep documents for 10 years from filing (Res. 268/2022 art. 26).
• Reorganisations: benefits pass to another entity only in a tax free reorganisation under Income Tax Law arts. 80 and 81, notified within 30 business days (Decree 1034/2020 Annex art. 14).
• Pay the fee and the FONPEC contribution (sections 5.3 and 5.4).

5.2 Biennial revalidation increases (Res. 268/2022 art. 43)

A micro company that becomes small or medium applies the registration percentages for its new size and the first increase two years later (Res. 268/2022 art. 45). The authority may reduce or defer increases in exceptional sector wide circumstances (art. 46).

5.3 Verification and control fee (art. 13)

The law allows a fee of up to 4% of the tax benefits obtained, to pay for audits (art. 13). Res. 268/2022 art. 56 set it at 2% of benefits received, whether or not used or later adjusted. Payment is monthly for the bonus, within 15 business days of receiving it, and yearly for the income tax reduction, 15 business days after the income tax return due date (art. 57). It is reported through the TAD procedure "Pago de Tasa en concepto de verificación y control (EDC)" (art. 58). Late payment bears interest at the Ministry of Economy Res. 559/2022 rate (art. 57).

Res. 67/2025 art. 2 set the fee at 0% until 31 December 2025. No norm extending the 0% rate into 2026 was found in the Infoleg list of norms linked to Law 27.506 (checked to September 2026) (unconfirmed).

5.4 FONPEC contribution (art. 18)

Beneficiaries contribute to FONPEC up to 4% of benefits (art. 18 III(1)(a)). The regulation sets 1% for micro, 2.5% for small and medium and 3.5% for large companies (Decree 1034/2020 Annex art. 21; Res. 268/2022 art. 75). The base is all benefits under arts. 8, 9 and 10, used or not. Payment: monthly for the bonus within 15 business days; yearly for income tax, 15 business days after the return due date (art. 75). It is paid by bank transfer to the FONPEC collection account at Banco de la Nación Argentina (account details in Res. 268/2022 art. 76) and reported through TAD with the transfer receipt and the income tax return (art. 76). Unlike the fee, no suspension of the FONPEC contribution was found.

5.5 Deadlines table

6. Sanctions and loss of benefits

Sanctions (art. 15). Breach of the regime, of the information regime, or false information or documents, can lead, individually or jointly, to:

The authority weighs seriousness, fiscal harm and the company's record (art. 15). Criminal, social security and tax penalties also apply. A sanctioned company cannot reapply during the period set in the sanction (Decree 1034/2020 Annex art. 15). ARCA recovers benefits that must be returned (Annex art. 16).

Automatic loss (art. 15 bis). Benefits fall automatically on: (a) a cut in promoted headcount lasting over 60 days; (b) unregistered workers; (c) listing in REPSAL; (d) fraudulent practices. These follow an abbreviated procedure with automatic suspension and 5 days to reply (Res. 268/2022 arts. 71 and 72).

Procedure. Audits can start at any time (Res. 268/2022 art. 48). After the final audit report the company has 10 business days to accept or reject; silence is acceptance. Calculation errors are adjusted on future bonuses; income tax errors must be fixed by amending the return or the authority refers the case to ARCA; prima facie breaches suspend bonus issue (art. 53, as replaced by Res. 67/2025 art. 1). Benefits suspended for late annual, revalidation or audit filings restart only from regularisation, without retroactive effect (art. 53). Adjustments in the company's favour arise only from the authority's own material errors; later amendments to F.931 do not generate upward adjustments (art. 53). If there are no pending benefits to offset, the case goes to ARCA after 45 days (art. 54).

Voluntary exit. A company may request deregistration at any time with the Annex X form; bonus issue stops at once and pending annual or revalidation filings must be made pro rata (Res. 268/2022 art. 28). The authority may audit before closing the file; if there was a breach but no benefit was used, it closes without sanction and cancels unused bonuses (art. 29, as replaced by Res. 267/2024).

10. Interaction with RIGI and with exchange controls

RIGI. The Large Investment Incentive Regime of Law 27.742 is a separate regime for single project vehicles investing at least US$ 200,000,000 in eight sectors that include "technology" (Law 27.742 arts. 172 and 173; see RIGI). RIGI benefits cannot be accumulated with incentives of the same nature from other regimes, but adhesion to RIGI does not mean renunciation of, or incompatibility with, other regimes whose incentives are of a different nature and do not overlap (Law 27.742 art. 208). A VPU must have a single project as its exclusive object (art. 169), which rarely fits a services company with many clients. Practical consequences, based on the text:

• Income tax: RIGI gives a flat 25% rate (art. 183(a)); the Law 27.506 reduction is an income tax benefit of the same nature, so stacking both on the same income looks barred by art. 208 (unconfirmed).
• Payroll bonus: RIGI has no equivalent payroll credit, so on the text it is "of a different nature", but whether a VPU can be registered in the Registro EDC at all (single object, main activity test) is untested (unconfirmed).
• FX: RIGI FX benefits cannot be combined with other FX regimes (FX rules point 14.5.1, per the RIGI page), and the Decree 679/2022 FX amounts cannot receive any other differential FX treatment (FX rules point 2.6.1).

Exchange controls. Registration under Law 27.506 does not exempt a company from converting service export proceeds into pesos. The general rule is conversion within 20 business days of collection (FX rules point 2.2.1). The only knowledge economy exception is Decree 679/2022 Chapter II: up to 30% of the quarterly increase in export proceeds over the same quarter of 2021, certified by one nominated bank, kept in a special account and used only to pay registered staff in foreign currency (Decree 679/2022 art. 8; FX rules points 2.2.2.2 and 2.6). Many companies have no "increase" over 2021 in real terms, or find the certification burden high. Separately, individuals exporting services can keep proceeds in their own foreign currency accounts (FX rules point 2.2.2.1), which is one reason some freelancers prefer to invoice personally rather than through a registered company. Full detail: Exchange controls.

14. Timeline of norms

Step by step

Who files: the company, through its legal representative or an attorney with sufficient powers; filings by a TAD proxy who is not the legal representative must be ratified (Res. 268/2022 art. 20). Channel: entirely online: ARCA Clave Fiscal level 3 and the TAD platform (art. 20). Language: foreign language documents need a sworn translator's translation (art. 20).

1. Prepare. Confirm the CLAE codes under which you invoice match Annex II; check the 70% test on the last 12 months of invoicing; obtain or renew the MiPyME certificate (otherwise you are treated as large); clear REPSAL; get the union clearance or sworn statement; gather evidence for two extra tests (certificate or improvement plan file, training invoices and certificates, R&D ledgers, Factura E exports) (Res. 268/2022 arts. 2, 6 to 18; Decree 1034/2020 Annex art. 2).
2. Form 1278 in ARCA. In the service "Régimen de Promoción de la Economía del Conocimiento: Solicitud de Inscripción/Revalidación anual", complete and send Form 1278. It pulls VAT returns and F.931 data. Sending it authorises ARCA to share data with the authority (RG 5325/2023 art. 1; Res. 268/2022 art. 22). ARCA checks compliance systemically; it does not assess eligibility.
3. TAD filing. By the last day of the following month, complete the "Formulario de Inscripción" (Annex IV of Res. 268/2022) in TAD with the sworn statements for R&D (Annex VII), training (Annex VIII) and exports (Annex IX), the final user statement (Annex III) if relevant, and the listed certified accounting and technical documents (Res. 268/2022 arts. 7 and 22; Decree 1034/2020 Annex art. 1). Missing the deadline means the application is treated as not filed (art. 22). The creation date of the TAD form is the registration date if no corrections are needed (art. 22).
4. Review. The Dirección de Estrategias para la Economía del Conocimiento reviews and may request corrections with 10 business days to reply (extendable up to three times). It may order a technical analysis or site visit (Res. 268/2022 arts. 5 and 23). Failure to reply archives the file and blocks a new application for a year.
5. Decision. A technical report goes to the Undersecretariat; the Secretariat signs the registration or rejection act, notified through TAD. It states the registration date, promoted activities and their proportion, the extra tests met and the bonus parameters (art. 24). A registration number is assigned and ARCA is informed (art. 25). ARCA codes the company 451.
6. Post registration. Declare staff with the knowledge economy activity codes in F.931; apply for the CNR TECNO VAT exclusion if you exported in the prior three months (RG 4958/2021); check and use bonuses monthly in "Administración de Incentivos y Créditos Fiscales" (RG 5325/2023); pay fee (if applicable) and FONPEC monthly; diary the annual and biennial filings.

Time. About one to two months for steps 2 and 3, set by the "last day of the following month" rule. The review stage has no legal deadline (unconfirmed). Cost. No official filing fee found (unconfirmed); professional, certification and audit preparation costs vary (unconfirmed). Online vs paper. Fully online.

Worked examples

Facts. An Argentine SA develops custom software for foreign clients. It holds a valid MiPyME certificate as a medium company. All turnover is promoted (CLAE codes in Annex II) and 80% of it is exported with Factura E. It meets the export test and holds ISO 9001. Fiscal year 2026, starting after its registration date. Taxable profit before any regime effect: ARS 2,000,000,000 (US$ 1,278,854.15). Annual gross payroll of 100 direct staff: ARS 800,000,000 (US$ 511,541.66). All salaries are assumed below the 125 unit cap of Res. 268/2022 art. 85 (unconfirmed). The employer rate for the four subsystems is assumed to be 18%, because the 20.40% rate applies only to service companies above the "mediana tramo 2" sales limit (Law 27.541 art. 19).

Step 1. Income tax without the regime (2026 scale, Income Tax Law art. 73; ARCA scale file escala_pj2026):

• Profit above ARS 1,335,141,857.38: ARS 2,000,000,000 − 1,335,141,857.38 = ARS 664,858,142.62.
• Tax = ARS 393,866,847.93 + 35% × ARS 664,858,142.62 = 393,866,847.93 + 232,700,349.92 = ARS 626,567,197.85 (US$ 400,644.03). Effective rate 31.3%.

Step 2. Income tax with the regime (art. 10, 40% reduction for medium):

• Tax = ARS 626,567,197.85 × (1 − 0.40) = ARS 375,940,318.71 (US$ 240,386.42). Effective rate 18.8%.
• Saving: ARS 250,626,879.14 (US$ 160,257.61).
• Same facts if the company were small (60%): tax ARS 250,626,879.14 (US$ 160,257.61). If large (20%), or medium but without a valid MiPyME certificate: tax ARS 501,253,758.28 (US$ 320,515.22).

Step 3. Employer contributions and bonus (Law art. 8; Decree 1034/2020 Annex art. 8):

• Monthly deduction per worker under Law 27.541 art. 22: ARS 7,003.68 × 100 workers × 12 months = ARS 8,404,416.00 (US$ 5,374.01). Whether the deduction also applies to the SAC (13th salary) is not covered here; the example uses 12 months (unconfirmed).
• Contribution base: ARS 800,000,000 − 8,404,416 = ARS 791,595,584.00.
• Contributions at 18%: ARS 142,487,205.12 (US$ 91,110.18). (Obra social at 6% is paid too but is outside the bonus base.)
• Bonus at 70%: ARS 99,741,043.58 (US$ 63,777.12) for the year, issued monthly.

Step 4. Using the bonus. The company's VAT on exports is zero, so it has little or no VAT to pay. Because it exports 80%, it can opt for the income tax prefix and use the bonus against income tax up to 80% of its value: ARS 79,792,834.87 (US$ 51,021.70) (Law art. 8, 4th para.; Res. 268/2022 art. 83). The rest can pay other national taxes. Because exports exceed 70%, it may alternatively sell the export share of each monthly bonus once to another beneficiary (Res. 268/2022 art. 82; RG 5325/2023 art. 13). The bonus itself is not taxable (art. 8).

Step 5. Costs of the regime (Res. 268/2022 arts. 56 and 75):

• Total benefits: ARS 250,626,879.14 + 99,741,043.58 = ARS 350,367,922.72 (US$ 224,034.74).
• FONPEC at 2.5% (medium): ARS 8,759,198.07 (US$ 5,600.87).
• Verification fee at 2%, if it applies in 2026: ARS 7,007,358.45 (US$ 4,480.69).
• Net benefit: ARS 334,601,366.20 (US$ 213,953.17) with the fee, or ARS 341,608,724.65 (US$ 218,433.87) if the fee stays at 0%.

Step 6. Summary.

Variant: foreign withholding. If a foreign client withheld ARS 50,000,000 (US$ 31,971.35) of tax on fees that are Argentine source income, art. 12 lets the company deduct that amount. At the 35% marginal rate the deduction cuts the scale tax by ARS 17,500,000 (US$ 11,189.97); after the 40% reduction the actual saving is ARS 10,500,000 (US$ 6,713.98). Check first whether a double tax treaty gives a better result (see Treaties).

What could go wrong. If headcount falls below 100 for more than 60 days without a justified cause, benefits fall automatically (art. 15 bis(a)). If the MiPyME certificate expires before the annual filing, the company is treated as large (Res. 268/2022 arts. 6 and 40), cutting the reduction to 20%. If F.931 is filed late, bonuses for periods more than four months back are not issued (art. 77).

Facts. A SAS incorporated 18 months ago (VAT registration date 18 months ago) sells a SaaS product to Argentine customers. It is a micro company with a MiPyME certificate and registers under the art. 6 shortcut, so it only proves the activity. It has 6 direct employees, each earning ARS 2,000,000 (US$ 1,278.85) gross per month: total ARS 12,000,000 (US$ 7,673.12). One of them is a woman hired after registration who increased headcount, so she qualifies for the 80% rate (art. 9). Employer rate 18% (Law 27.541 art. 19 b)). The company has up to 25 employees, so the extra ARS 10,000 (US$ 6.39) monthly deduction of Law 27.541 art. 23 applies; this example reads it as one deduction per employer per month and allocates the ARS 1,800 (US$ 1.15) saving evenly, ARS 300 per worker (unconfirmed).

Step 1. Contributions per worker.

• Base: ARS 2,000,000 − 7,003.68 = ARS 1,992,996.32.
• 18% = ARS 358,739.34 (US$ 229.39); less ARS 300 share of the art. 23 saving = ARS 358,439.34 (US$ 229.20).
• Total monthly contributions for 6 workers: ARS 2,150,636.03 (US$ 1,375.17).

Step 2. Monthly bonus.

• 5 workers × ARS 358,439.34 × 70% = ARS 1,254,537.68 (US$ 802.19).
• 1 qualifying new hire × ARS 358,439.34 × 80% = ARS 286,751.47 (US$ 183.36).
• Monthly bonus: ARS 1,541,289.15 (US$ 985.54). Over 12 months: ARS 18,495,469.82 (US$ 11,826.50). The 80% applies to the new hire for 24 months at most (Decree 1034/2020 Annex art. 9).

Step 3. Monthly charges on the bonus.

• FONPEC 1% (micro): ARS 15,412.89 (US$ 9.86).
• Fee 2%, if applicable: ARS 30,825.78 (US$ 19.71).

Step 4. Using the bonus against VAT. Monthly domestic sales ARS 40,000,000 (US$ 25,577.08) plus 21% VAT: output VAT ARS 8,400,000 (US$ 5,371.19). Input VAT ARS 1,200,000 (US$ 767.31). VAT payable ARS 7,200,000 (US$ 4,603.87). The company imputes the bonus in "Administración de Incentivos y Créditos Fiscales" against the VAT return balance (RG 5325/2023 arts. 7 and 9): cash VAT falls to ARS 5,658,710.85 (US$ 3,618.33).

Step 5. Income tax. The startup is loss making, so the 60% income tax reduction gives nothing yet. Because it has no exports, it cannot use the bonus against income tax (art. 8). If it had little VAT to pay, unused bonuses would expire after 24 months with no refund (art. 8; RG 5325/2023 art. 10).

Step 6. Year four. Four years after registration, or as soon as it stops being micro, the company must pass the 70% test and two extra tests at the next annual filing, or ask to leave within 15 business days (Res. 268/2022 arts. 37 and 38). If it grows into a small company, it applies the small company percentages that applied when it registered (art. 38): training 2% of payroll, R&D 2% of turnover or exports 10%, plus quality.

Practical traps

1. The MiPyME certificate. No valid certificate on the filing date means large company treatment (Res. 268/2022 art. 6). Renew it before every annual filing and revalidation.
2. Direct staff only. Admin, sales and support staff do not generate bonus (Res. 268/2022 art. 17). Payroll mapping must be defensible in an audit.
3. Cap on the bonus base. From 1 July 2024 salaries above 125 units only count up to the cap (art. 85). Teams of senior developers may get much less than 70% of actual contributions.
4. Exporters with no VAT to pay. Exporters accumulate VAT credits and pay little VAT, so the bonus may go unused unless they opt for income tax use (up to the export %) or sell it (if exports reach 70%).
5. No refunds, 24 month expiry. Unused bonuses die (art. 8).
6. Headcount trap. A redundancy round can cost all benefits if staff are not replaced within 60 days (art. 15 bis(a); Decree 1034/2020 Annex art. 7). Restructure through justified causes or replace quickly.
7. Late filings cost months. Benefits suspended for late annual or revalidation filings restart only from regularisation (Res. 268/2022 art. 53). F.931 data older than four periods is not used (art. 77).
8. Quota risk. Bonuses depend on the yearly quota; 2024 applicants pending in May 2025 got no 2024 bonus (Res. 67/2025 art. 4). Large companies get at most 40% of any quota increase (Res. 268/2022 art. 86).
9. The 70% is about invoicing codes. Turnover invoiced under the wrong CLAE code does not count (Res. 268/2022 art. 2). Fix activity codes in ARCA before applying.
10. Self development and group work. Software built for related companies as final users is excluded from the 70% test (art. 5). Intragroup service centres must show they are not final users.
11. Exports measured on promoted turnover. The export test uses promoted turnover as denominator (Res. 268/2022 art. 18), and Factura E is required (Decree 1034/2020 Annex art. 1).
12. Rejected or archived means a one year wait (Res. 268/2022 arts. 23 and 27).
13. Revalidation ratchet. Percentages rise every two years for small, medium and large companies (art. 43). A company that barely passes at entry will fail at the first revalidation unless spending grows.
14. Fee and FONPEC are due even on unused benefits (arts. 56 and 75).
15. Sanctions reach back. Revocation can run from the registration date, with tax, interest and fines up to 100% (art. 15). Former Software Law companies that failed their first revalidation face clawback from 1 January 2020 (Res. 268/2022 art. 33).
16. Provincial gross income tax is separate. The national regime does not cover provincial taxes; art. 22 only invites provinces to adhere. Check the province (see Gross income tax) (unconfirmed).

Recent changes

The 2026 entries show the Secretariat's name has changed again ("Industria, Comercio y de la Pequeña y Mediana Empresa"), which suggests a further restructuring of the authority in 2026 (unconfirmed).

No repeal found. No decree or law ending the regime early, cutting its benefits, or changing Law 27.506 after Decree 679/2022 was found in the Infoleg list of linked norms (checked to 25 September 2026) or in the other laws in the project sources (Law 27.742, Law 27.799, Law 27.802). The regime runs until 31 December 2029 (art. 20) (unconfirmed).

Pending changes

• 2026 fee. Whether the 2% verification fee is back from 1 January 2026 (Res. 67/2025 art. 2 only covers 2025).
• 2027 quota. Depends on the 2027 budget law, not in the sources.
• After 2029. The law gives stability "for the term of its validity" (art. 7) and ends the regime on 31 December 2029 (art. 20). There is no rule on what happens to bonuses issued in late 2029 (24 month validity) or to fiscal years straddling the end date (unconfirmed).
• Quota versus stability. How the authority reconciles art. 7 stability with quota exhaustion (Res. 67/2025 art. 4).
• RIGI overlap. No authority guidance on combining the two regimes.
• Annex lists. CLAE codes (Annex II), forms (Annexes III, IV, VII to XV) and the less developed provinces (Annex XVI) of Res. 268/2022 are image annexes not reproduced in the source files.
• Export duty. Whether any decree since 2022 has reimposed export duties on services.

FAQ

1. Can a foreign company register directly? Only legal persons incorporated in Argentina "or authorised to act within its territory" can register (art. 4 I). A foreign company would need at least a registered branch, and it must carry out the promoted activity in Argentina on its own account. Most groups use a local SA, SRL or SAS.

2. Can a freelancer or sole proprietor use the regime? No. The law covers legal persons only (art. 4 I). Individual service exporters instead benefit from the FX exception that lets them keep proceeds in their own foreign currency accounts (FX rules point 2.2.2.1).

3. Is the income tax reduction a lower rate? No. It is a percentage cut of the tax computed under the normal scale: 60%, 40% or 20% by size (art. 10). In Example 1 a medium company's effective rate falls from 31.3% to 18.8%.

4. Can the bonus pay income tax? Only for companies with exports from promoted activities, and only up to the export percentage declared at registration or updated each year (art. 8, 4th para.). Otherwise it pays VAT and other national taxes, never income tax.

5. Can I sell my bonus? Only if exports are at least 70% of promoted turnover, only once, only the export share, and only to another registered beneficiary, through the ARCA service, reporting the price (art. 8; Res. 268/2022 art. 82; RG 5325/2023 art. 13).

6. Does registration free me from converting export dollars? No. The 20 business day conversion rule still applies (FX rules point 2.2.1). The only knowledge economy relief is the 30% of incremental exports over 2021 under Decree 679/2022 art. 8, for paying staff.

7. What happens if I lay off staff? If promoted headcount falls below the registration level for more than 60 days for an unjustified cause, benefits fall automatically (art. 15 bis(a)). Resignations, dismissals with cause, end of fixed term and the other listed causes do not count, but the headcount must still be met at each annual check (Decree 1034/2020 Annex art. 7).

8. How much does it cost to stay in the regime? FONPEC 1%, 2.5% or 3.5% of benefits by size, plus the verification fee of 2% of benefits (0% in 2025; 2026 (unconfirmed)), on benefits received whether or not used (Res. 268/2022 arts. 56 and 75; Res. 67/2025 art. 2). Add certification, training or R&D spend needed for the extra tests and advisory fees.

9. What if my company was under the old Software Law 25.922? Former beneficiaries that adhered and ratified were treated as registered from 1 January 2020, with benefits retroactive to that date, but had to meet all art. 4 tests at their first biennial revalidation; failure triggers clawback from 1 January 2020 (Law art. 17; Decree 1034/2020 Annex art. 5; Res. 268/2022 arts. 31 to 33). Unused Software Law bonuses at 31 December 2019 stay valid until used (art. 16).

10. Does the regime cover provincial taxes? No. Art. 22 invites provinces and municipalities to adhere with similar rules. Provincial gross income tax relief depends on each province (unconfirmed).

11. Is the regime ending early? No norm ending or cutting the regime before 31 December 2029 was found in the sources (checked to September 2026). The main practical risk is the yearly quota for bonuses.

12. Can I combine it with RIGI? The law allows combining RIGI with other regimes only for incentives of a different nature that do not overlap (Law 27.742 art. 208). Income tax benefits of both regimes appear to overlap. A VPU's single project structure rarely fits a typical knowledge economy company. No official guidance exists (unconfirmed).

Primary sources

• Law 27.506, updated text (as amended by Law 27.570 and Decree 679/2022), file
• Infoleg list of norms modifying or complementing Law 27.506, file
• Law 27.570, file
• Decree 1034/2020, files and
• Decree 708/2019 (repealed), file
• Decree 679/2022 (DNU), file
• Decree 1201/2018, updated text, file
• Res. 4/2021 MDP, updated text (repealed), file
• Res. 833/2021 MDP, file
• Disposición 11/2021 SSEC, updated text (repealed), file
• Res. 976/2022 MEcon, file
• Res. 268/2022 SEC, updated text, file
• Res. 267/2024 SEPyMEyEC, file
• Res. 1419/2024 MEcon, file
• Res. 67/2025 SEPyMEyEC, file
• Res. 68/2025 SEPyMEyEC, file
• Res. 255/2025 SEPyMEyEC, file
• RG 4949/2021 AFIP (repealed), file
• RG 4958/2021 AFIP, file
• RG 5013/2021 AFIP, file
• RG 5325/2023 AFIP, file
• Decree 186/2025 (DNU, 2025 budget changes), file
• Law 27.798 (2026 Budget), file
• BCRA consolidated text "Exterior y Cambios" updated to 14 September 2026 (Com. A 8481), file points 2.2.1, 2.2.2.1, 2.2.2.2 and 2.6
• Law 27.742, Title VII (RIGI), arts. 169, 172, 173, 183 and 208, file

Related pages

• Does my company qualify for the knowledge economy regime?
• Energy and mining
• Agribusiness in Argentina: export duties, grain trading, land and the investment rules
• Oil and gas in Argentina: concessions, Vaca Muerta and the investment rules
• Renewable energy in Argentina: RenovAr, MATER, distributed generation and RIGI