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February 10, 2021

Uruguay's Executive Power regulates certain aspects of the investments law

The new decree establishes rules for determining the corporate income tax (CIT) exemption and the CIT and net wealth tax (NWT) liabilities when a request for CIT and NWT benefits is pending.

Through Decree No. 284/020, Uruguay's Executive Power regulated certain aspects of the Uruguayan investments law on the tax benefits granted to investment projects. The new regulations include provisions for the CIT and NWT exemptions, and provisions to prevent the accumulation of tax benefits.

CIT exemption

The decree establishes rules for determining the CIT exemption when a taxpayer has two or more investment projects overlap in the same tax year. According to the new regulations, taxpayers that qualify for CIT exemptions for more than one promoted investment project at the close of the tax year may claim the lower of the following amounts as the CIT exemption:

  1. The sum of all corporate income tax exemptions for the tax year from each promotional declaration claimed under the investments law
  2. The CIT exemption amount from the project with the highest CIT exemption percentage

Pending requests

Taxpayers that have a pending request with the Executive Power to receive CIT or NWT benefits may determine their CIT and NWT liabilities as if the benefits have been approved.

If the Executive Power does not subsequently grant the requested CIT and NWT benefits, taxpayers may pay the difference in the tax liabilities without the imposition of fines or surcharges within three months of the resolution's issuance.

Tax benefits accumulation

The decree establishes that taxpayers receiving CIT exemptions for investment projects may not receive any other CIT benefits. The portion of the net income that is not exempt from the CIT may not be exempt under any other regime.


Contact Information
For additional information concerning this Alert, please contact:
EY Uruguay
   • Martha Roca (
   • María Inés Eibe (
   • Nadine Bruck (
Latin American Business Center, New York
   • Ana Mingramm (
   • Enrique Perez Grovas (
   • Pablo Wejcman (