On 19 April 2023, the Legislative Assembly approved a law for the Promotion of Technological Innovation and Manufacturing with 69 votes in favor.
The new legal law offers tax benefits to individuals or organizations, both domestic and foreign, who invest in innovation projects or technological manufacturing within the country. These activities include programming, management, maintenance, consulting, computer systems or software analysis, development and commercialization of cloud computing services and data flows, as well as technologies involving the production of parts, materials, equipment, or facilities.
Under this law, the following tax incentives will be granted for a period of 15 years:
- Complete exemption from income tax for earnings derived from the incentivized activities.
- Waiver of all income tax withholdings related to the incentivized activities.
- Exemption from municipal taxes on economic activity.
- Total exemption of capital gains.
- Complete exemption from value-added tax (VAT) and import duties for assets necessary for the incentivized activities.
