Software law Argentina – Review – El Universal – Universal (Venezuela)

In my last two articles I proposed some ideas to develop the software industry in the country, as an option to boost the economy. This time I present a summary of the positive results of 10 years of implementation of the Law of Argentina analysis software. Experience that can serve as an example for the establishment of the legal rules of this industrial sector in Venezuela.

As described in “History of Information Industry Argentina” published in 2014 by the “Chamber of Software and Information Services,” the law of Promotion of Software Industry in Argentina began to take shape in the troubled period between 2001 and 2002. The country faced a deep economic and political crisis that led to the hasty departure of President Fernando de la Rua, in late 2001. During this period five interim presidents succeeded. One of which, Adolfo Rodriguez Saa declared the “default” of debt. Finally, Eduardo Duhalde was appointed interim president until the end of the mandate that corresponded to De la Rua.

In this context of crisis, a group of officials and businessmen decided to promote the development of the software through a law to consolidate this industry and to contribute to the revival of the economy Argentina. There were objective to act in that sense reasons. The costs of labor were low as a result of currency devaluation. Investment to create a job was also low. And despite the deep crisis, Argentina retained a high level of education and computer training.

The promoter group, besides discussing the law, set out to devise a strategic 10-year plan calling for the broad participation of various sectors such as:. Government, business and academic

There was progress steadily. The first step was to declare to the development of software as an industry. Law 25856, enacted in January 2004, stated: “the software production activity should be considered a productive activity comparable to an industrial transformation, the effects of perceived tax benefits, credit and otherwise” . After much discussion across the country eventually Software law was enacted in November 2004 by President Nestor Kirchner.

The benefits for companies in the sector were considerable. Up to 70% tax credit, to be used to pay national taxes. Disencumbrance to 60% on income tax. Fiscal stability during the period of the promotion scheme.

To qualify for these benefits is necessary for companies to comply with requirements related to the activities promoted. Bill and have more than 50% of persons employed and more than 50% of payroll dedicated to software. Allocate more than 3% of turnover on research and development of software. Certify international quality standards software. Ensure job security.

The results in 10 years of law enforcement have been positive. The software market in Argentina has experienced sustained growth. Between 15% and 20% annual average since 2003. The current turnover of 3,700 million. Exports are 900 million. Sector companies employ about 80,000 people.

In Venezuela you can replicate this experience, correcting mistakes and applying the same key success factors in Argentina.

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