Suspension of the Regime for the Knowledge Economy’s Promotion

The Resolution 30/2020 of the Productive Development’s Ministry published on January 20, 2020, in the Official Gazette, has cancelled the application of the “Regime for the Knowledge Economy’s Promotion”, approved in May to encourage productive activities based on the intensive use of technology and the digitalization of information.

It was decided to suspend the deadlines to analyse and process the applications for the “Regime for the Knowledge Economy’s Promotion”, submitted, until such time as the corresponding complementary regulations are issued

Law 27.506 was intended to promote economic activities that apply the use of knowledge and the digitalization of information supported by science and technology advances, the procurement of goods, the provision of services and/or process improvements; for this, different tax advantages contained in the law were contemplated.

This government’s decision is surprising because technology companies are preparing for business growth, hiring, and connection with foreign clients to offer greater services.

The government is expected to reformulate the law by introducing some changes to the original regulations after having included its treatment in the last extraordinary sessions.