The extension is good news for taxpayers that are installing POS terminals and other accessories. Taxpayers that might benefit from this extension should review the terms of the Decree to ensure that they qualify for the tax benefits.

Uruguay has extended (Decree No. 351/015, December 22, 2015) the tax benefits (i.e., corporate income and withholding tax exemptions) for investments in POS terminals, numeric keyboards (PIN PAD) and other accessories of POS terminals and billing systems, enacted by Decree No. 319/014 (November 10, 2014). The tax benefits will apply to POS terminals and other POS accessories installed between August 1, 2014 and December 31, 2016. The original expiration date for the tax benefits was December 31, 2015. Decree No. 351/015 was published in the Official Gazette on January 7, 2016.

Decree No. 351/015 also established that the tax credit included in Decree No. 288/012 (August 29, 2012) is determined by applying the following percentages to the cost of leasing the POS terminals: 70% until December 31, 2016 and 40% from January 1, 2017 to December 31, 2017. The lease value (i.e., the cost), however, is limited to the values established in Article 5 of Decree No. 319/014.

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