The National Assembly is reviewing Bill 639, submitted on April 30, 2026 by H.E. Juan Carlos Orillac U., Minister of the Presidency, which requests a favorable opinion for the signing of Addendum No. 1 to the contract between the State and the Ciudad del Saber Foundation, an instrument originally approved through Decree Law No. 6 of February 10, 1998. The initiative, referred to the Economy and Finance Committee, seeks to formalize the extension of a broad tax exemption regime whose initial 25-year term expired on February 12, 2023.

According to the bill's statement of purpose, the 1998 contract has no expiration date and was endorsed at the time by the Comptroller General of the Republic under Article 280 of the Political Constitution. Its Fifth Clause established the special tax incentives regime for the initial 25-year term, renewable for successive periods of the same length. The need for legislation arose after, through Note No. MEF-2025-47972 of July 17, 2025, the Ministry of Economy and Finance requested clarification as to which entity had to certify the Foundation's contractual compliance in order to activate the extension.

In response, Note No. SAJ-1367-2025 of October 6, 2025 from the Ministry of the Presidency established that the authority to recognize and apply the extension rests with that office, subject to compliance with the required legal formalities. Later, through Note No. MEF-2025-85826 of December 29, 2025, the Ministry of Economy and Finance concluded that the Ciudad del Saber Foundation has satisfactorily complied with the requirements set out in the Second Clause of the original contract. The addendum also has the favorable opinion of the Cabinet Council, issued through Resolution No. 8 of February 24, 2026.

Article 1 of the bill approves in full the text of Addendum No. 1, whose Second Clause amends the Fifth Clause of the original contract to establish an additional period of tax benefits running from February 13, 2023 to December 31, 2027. The exemptions covered in the new text include: exemption from taxes, contributions, fees, and import duties on machinery, equipment, furniture, vehicles, devices, and supplies needed for the project; exemption from ITBMS on those same goods; exemption from Property Tax on property owned by the Foundation; exemption from levies on sending money abroad for project purposes; and one hundred percent tax benefits for innovative companies located in the Ciudad del Saber technology parks, including exemption from direct national tax on their capital and patent or license.

As a condition for recognition of the benefits, the addendum requires the Foundation to submit to the General Revenue Directorate of the MEF an updated list of affiliated companies seeking to claim the exemptions, which must include the RUC number, contact information, and a notification mechanism when a company joins or withdraws. That list must be submitted during the first 30 days of each fiscal year. Additionally, the Third Clause of the addendum creates an interinstitutional review commission made up of representatives of the Ministry of the Presidency, which will chair it, the MEF, the Foreign Ministry, the Ministry of Commerce and Industry, the National Customs Authority, the Foundation itself, and the National Secretariat of Science, Technology and Innovation (Senacyt). This commission will have nine months, counted from publication in the Official Gazette, to present a proposal for amendments to the framework contract.

At the close of this edition, Bill 639 is pending First Debate before the National Assembly, assigned to the Economy and Finance Committee. Under the Fifth Clause of the addendum itself, its validity requires both approval by the National Assembly and endorsement by the Comptroller General of the Republic. The law's entry into force, according to Article 2 of the bill, will begin upon its promulgation.