MercadoLibre recently received approval for income tax and payroll exemptions from the Argentine Industry Secretary under a new software development law, guaranteeing the company a reduction of the effective income tax rate for its operations and a reduction on labor costs.
MercadoLibre was granted the tax break retroactively to its September 2014 application. Among the benefits of the law are relief of 60 percent of the total taxable income stemming from software development activities and a 70 percent exemption on payroll taxes for employees involved in software development activities.
MercadoLibre's income tax savings will approach $15.5 from October through December 2015. The payroll tax break will cut labor expenses by $3 million to $4.5 million over the same period.
Established in 2011, the software development tax law is valid through 2019.
Organizations in this story
MercadoLibre, Inc. 3751 Arias Buenos Aires, CABA C1430
- General Tire launches new tire for Andean market
- Latin America talks of boosting pork production, exports @CorferiasBogota
- AIR Worldwide team takes part in wind-engineering conference
- El Salvador's Asesuisa discusses risk management, strategic direction with stakeholders
- Grupo Exito buying lettuce locally to support resocialization program
- Endo selling Mexico-based Grupo-Farmaceutico Somar
- AGUNSA operating Ingeniero Buitrago Port in Argentina
- Development Finance Agency approves credit appropriations
- Votorantim, Baesa aiding program to provide children with activities in Brazil
- Chilean tennis club wins Engie Interclub Championship Cup for second time