Uruguay implements tax incentives for Biotech industry until 2021

Montevideo (Uruguay), the Parliament
Montevideo (Uruguay), the Parliament

There are not only Brazil and Argentina in the Latin-American bioeconomy. Uruguay has recently approved strong tax incentives for biotech companies. This new law is a milestone in the implementation of the national strategic plan for Uruguay’s fast growing biotech industry which has been officially declared strategic for the country’s future industrial development.In addition to tax incentives, the plan also promotes the creation of human capital, the development of an industry cluster in Montevideo, the simplification of product registration processes and incentives for seed and venture capital investments.

Under the new law, biotech start-ups as well as existing business that will contribute towards the development of specific value chains can benefit from tax breaks of 50% to 90% of corporate tax until 2021.

The biotech sub-sectors specifically targeted by these benefits are agro, renewable energy, environmentand human and animal health. These benefits are not only available to companies manufacturing biotechnological products but also for those providing biotech services as well.

Juan J. Manini

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