07 January 2016 Uruguay issues decree on inclusion of fiscal inflation adjustments in calculating CIT Uruguay has established a limit for taking into account the fiscal inflation adjustment in the corporate income tax calculation. If the annual variation of the IPPPN or IPC (whichever corresponds) indexes do not exceed 10%, companies should not apply the fiscal inflation adjustment to their corporate income tax calculations. In Decree No. 359/015, the Uruguayan Government established that companies cannot include the fiscal inflation adjustment established in Article 27 of Title 4 in their corporate income tax (CIT) calculation if the annual variation of the indexes referenced in the first paragraph of Article 28 of Title 4 of the Ordered Text of 1996 (IPPPN or IPC inflation indexes) does not exceed 10%. If a company's fiscal year is less than 12 months, the equivalent annual rate should be calculated to determine the variation in the IPPPN or IPC indexes for that period.
Document ID: 2016-0031 | |||||||||||||||||||
