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Argentina's new software law has entered into force on February 28, the country's software and IT services chamber Cessi said in a release.
Law number 26,692 replaces law 25,922 and extends the country's software promotion regime until December 31, 2019, Cessi said. The software law entitles software producers and exporters to a 60% reduction of regular income tax, as well as government subsidies equivalent to 70% of the pension payments they make for their workers.
In order to be considered for inclusion in the software law, companies must demonstrate continual investment in R&D or proof of exports, as well as obtaining quality certification.
The new software law was regulated by the industry minister in September last year, according to the report.
Under the new law, the government also created an official registry of software and IT services producers.
Argentine software and IT service exports are expected to expand by 16% in 2014 compared to 2013, Cessi's VP Diego Berardo previously told BNamericas. For 2013, the sector's exports reached nearly US$875mn, an increase of 17% from 2012.
By 2020, the local software and IT sector aims to reach sales of US$7.33bn, with exports totaling US$2.96bn.
Argentina's main export markets are the US, Brazil and other Latin American markets such as Mexico and Chile.