By: Paola Lambert
One of the sustainable alternatives that would help to improve the indicators of income, poverty, employment, and positive development in general of our country, is the strengthening of competitiveness and the promotion of productive activity, entrepreneurship, and foreign investment, through innovation and technological manufacturing. From the above, there is a need for government support to regulate the processes of innovation, technology, and their incentives.
In this matter, the Legislative Assembly, on April 18, approved the Law for the Promotion of Innovation and Technological Manufacturing, with 69 votes in favor of the deputies, which will be applicable to those natural or legal persons, national or foreign, engaged in programming, maintenance of computer systems or software; development and marketing of cloud computing services, artificial intelligence and cybersecurity; manufacture and assembly of parts and technological equipment, robotics and aircraft; engineering of industrial technologies, among others.
An effort to accelerate innovation in the technology sector in our country, 5 tax incentives have been established that will last for 15 years, starting from the date of the Qualification Agreement:
- Total exemption from Income Tax.
- Exemption from all types of income tax withholdings.
- Total exemption of municipal taxes on the net assets declared by the beneficiaries.
- Exemption from payment of Capital Gains,
- Total exemption from the payment of customs duties on the importation of goods, inputs, machinery, equipment, and tools for the development of activities.
The application of this Law will correspond to the Ministry of Economy; its supervision and effective control of the customs and tax regime will correspond to the Ministry of Finance.
It should be emphasized that, despite the purpose and positive intention of this Law, there are substantial points of regulation that will not be developed in its own Regulations, such as the criteria and/or requirements for the selection of companies eligible to obtain a Qualification Agreement to qualify for tax incentives.
In conclusion, the law initiative can be very favorable for the country’s economy, because unlike tangible investments in other sectors, which require considerable economic sums and long development periods, the IT and development sector allows to activate economies almost immediately, which is why, with the entry into force of this law, it invites a boom in domestic and foreign investment and, therefore, business ecosystems that will result in greater employment opportunities; In addition, it allows benefits in link, as it dynamizes the economy and boosts the country in educational matters, directing its work to form talent and human capital, developing trained personnel with specialized knowledge in the area.