Uruguay

There is not exist specific fiscal stimulus for fintech companies, but it does exist a preferential tax regime for software development activities carried out in Uruguay. Said preferential treatment consists of exoneration of income taxes for the software development activities to be exploited locally or abroad.

The exoneration is for the rents accruing of the software development carried out by the company and whose intellectual property is also of the company, as well as for the rents accruing of the provision of services of software development for third parties and the provision of related services, such as the implementation of the software for the client, integration, technical services, updating and corrections of the different versions, correcting and progressive maintenance, data conversion and migration, testing of the software and quality certification, IT risk, security and training.

The exoneration and its percentage is subject to the use of resources in the country for the software development. For instance, in the case of the development of software whose intellectual property has been registered by the company, the exoneration is based on the costs and expenses incurred during the development of the software, the development of each asset, granting or acquisition of intellectual property rights, and the outsources services with no resident entities.