Uruguay: Tax developments in response of COVID-19
General Information
This page offers an overview of tax developments being reported globally by KPMG member firms in response to the Novel Coronavirus (COVID-19).
The content will be updated regularly. However, due to the fast-moving pace of change, it may not always reflect the most current developments in a given jurisdiction. Please refer to the date of accuracy and refer to the relevant links, under additional information, for original source information.
Date accurate as of: 28 October 2020
Authorities in Uruguay have introduced a number of resolutions to mitigate the impact of the COVID-19 pandemic. These include:
Tax due dates
Various resolutions have extended tax due dates during the year 2020. The last one in force was Resolution 1898/020 of the General Tax Directorate, which extends the due dates of business income tax advances, Wealth Tax and Tax Control of the Public Limited Companies, from the month of September 2020, which may be paid in the month of December, for certain companies whose sales, services and other gross income from the previous year had generated taxable income for an amount that does not exceed the UI 6,000,000. It does not include Large Taxpayers
Updating of criteria in the investment promotion regime
By Decree No. 268/020 of September 30, 2020, it updates the criteria for investment promotion within the framework of Law No. 16,906 (Investment Law), its most salient aspects are:
- The ceiling for exemption from corporate income tax rises from 60% of the tax payable to 90%. In turn, an exemption for an amount equivalent to 100% of the invested amount may be applied each year.
- The minimum exemption term is raised from 3 to 4 years.
- The exemption from corporate income tax, measured as a percentage of the eligible investment, will be determined based on a score assigned in a new matrix of indicators that will be published by the Application Commission (COMAP).
- The commitment period for compliance with indicators is reduced from 5 to 3 years.
- In addition to the Business Income Tax exemption, the following exemptions may be applied: Wealth Tax for the entire useful life for movable property and for 8 years for real estate (10 years if it is in the interior); import duties and taxes on goods not competitive with the national industry; Refund of the Value Added Tax associated with civil works, as well as personal property acquired in the market.
- In the event that when presenting the project there are investments executed, the 20% limit established by Decree 143/018 is eliminated. In turn, the period allowed for executed investments is made more flexible, which will become the maximum between the last 6 months and the period elapsed since the beginning of the project presentation year.
