The Uruguayan Film and Audiovisual Agency (ACAU), together with the Ministry of Economy and Finance (MEF) and the Ministry of Industry, Energy and Mining (MIEM), has introduced the Audiovisual Tax Rebate, a new fiscal incentive designed to complement the Uruguay Audiovisual Program (PUA). The initiative aims to strengthen the country’s audiovisual industry, attract investment, and foster job creation across the sector.

The incentive consists of a transferable tax credit that reimburses up to 30% of eligible production expenses incurred in Uruguay by audiovisual projects that meet the program’s requirements. It is available to companies providing production or post-production services for international projects, international advertising productions, as well as domestic productions and co-productions.

According to ACAU, the new instrument expands the country’s incentive framework for an industry that has experienced sustained growth in recent years and whose performance under the Uruguay Audiovisual Program has exceeded initial expectations.

Impact studies conducted on the PUA using an input-output matrix methodology found that every dollar allocated through the program generated approximately US$6.90 in audiovisual goods and services output and US$6.87 in gross value added. In addition, every dollar invested generated US$3.91 in wages for sector workers and returned US$1.62 in tax revenue to the government.

The studies also found that nearly 99% of the value added generated remained in Uruguay through local production services, reflecting the strong participation of Uruguayan companies and professionals throughout the audiovisual value chain.