An industrial park (IP) is an urbanized public or private plot of land, approved as such by the Executive Power, and subdivided into lots, according to a general plan, equipped with roads, means of transport and public services. It may or may not have built factories and common services, and is intended for the use of a community of industrialists. Furthermore, the United Nations Industrial Development Organization (UNIDO) includes the figure of Eco-Industrial Parks (EIP), which seek to improve environmental, economic and social performance through collaboration in resource management.

A science and technology park (STP) is an area intended to favor the development and application of scientific and technological activities, promoting the transfer of knowledge between research institutions and knowledge-intensive companies.

Users are legal entities authorized by the Ministry of Industry, Energy, and Mining, as determined by regulations.

The following may be users of industrial parks and science and technology parks:
A) Companies that carry out industrial activities.
B) Companies that provide services, including logistics services.
C) Companies that provide services in activities that the Executive Branch determines, due to their potential, contribute to the objectives established in Article 1 of Law No. 19,784.
D) Entrepreneurs and business incubators.
E) Training and capacity building institutions.
F) Research or innovation institutions.
G) Other institutions linked to the generation of applied knowledge.
In addition, parks that include at least three users from these categories, and that do not all fall under the same category, are specially promoted by the Executive Branch.

It should be noted that Science and Technology Parks must incorporate at least one on-site research or innovation institution linked to the generation of applied knowledge.

Companies established in Industrial Parks can access both the general investment benefits and the specific incentives of the Industrial Park regime.

General Investment Promotion Regime. Law No. 16,906
For investment projects in any activity sector that are submitted and promoted by the Executive Power, it is possible to exempt between 30% and 100% of the invested amount from the Income Tax on Economic Activities (IRAE) for a minimum period of four years, which can extend up to 25 years, depending on the project classification and the score resulting from an indicator matrix such as job creation, decentralization, increased exports, clean technologies, and Research, Development and Innovation (R&D+i). Wealth Tax on fixed assets, movable goods, and civil works is also exempted, and VAT on purchases of materials and services for the latter is recovered. Likewise, this law exempts from duties or taxes the importation of movable fixed assets, declared non-competitive with the national industry.

Specific Benefits for Industrial Parks

• Exemption from Wealth Tax on movable goods installed or used exclusively in the park, including machinery and equipment, for their entire useful life, as well as on civil works for a period of ten years if the project is located in the north or south zone, and eight if it is located in Montevideo.
• Exemption from IRAE on up to 75% of the promoted investment, for both installers of IPs and STPs for a period of 10 years. In no case may it exceed 100% of the computable investment. This exemption is greater in term and percentage (four more years and 15% higher) if the park is located in the north of the country.
• Credit for the VAT included in materials and services applied to civil works, machinery and equipment destined for the installation of the initial project.
• Credit for the VAT on the purchase of goods and services required for the operation of the IPs and STPs, when it concerns ventures by public legal entities not covered by such activities in Title 10 of the Ordered Text 1996.
• Consideration of fixed assets and construction materials as capital goods for the purposes of applying article 79 of the ordered text of 1996, credit for VAT granted to Departmental Governments.
• Exemption from duties and taxes, including Value Added Tax (VAT), on the importation of fixed assets destined for the operator’s operations, as well as fixed assets and materials destined for the operator’s corresponding civil works, provided they do not compete with the national industry.
• Benefits regarding employer social security contributions, such as the exemption from employer retirement contributions for five years for users of industrial parks and science and technology parks.
• If benefits are granted in relation to IRAE, the amount of tax exempted and the period to enjoy the exemption will be increased by 15% compared to what would correspond by virtue of the score assigned by article 5 of DTO. 268/020.