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Uruguay: Expanded scope, transactions of entities operating in "free zones"

Uruguay: Entities operating in "free zones"

The scope of transactions has been expanded with regard to entities operating in “free zones” (zonas francas) and specifically concerning transactions with others in non-free zone areas.


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The changes made to the free zones rules are intended to provide enhanced incentives and to foster international trade and increased economic activity in Uruguay.

Resolution DGI 231/2019 reflects expanded requirements with respect to activities conducted in free zones. To be eligible, businesses must satisfy certain requirements relating to their free-zone activities, and must inform the tax authority (Dirección General Impositiva) about these activities—whether the activities are identified as “exceptional activities” or activities of an auxiliary or complementary nature—before beginning such activities. The tax authority must also be informed about the location (address) of the business and other appropriate information as required.

Free-zone entities exempt from income tax (IRAE) may conduct complementary, exceptional, and auxiliary activities outside the area. A branch of the general commerce agency (Área Zonas Francas de la Dirección General de Comercio) will authorize the contracts of free-zone entities that engage in eligible activities.

In sum, the types of activities that can be developed outside a free zone are made more flexible based on the activity’s classification as exceptional, auxiliary, or complementary.


Read a January 2019 report (Spanish) prepared by the KPMG member firm in Uruguay

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