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February 18, 2021

Uruguayan Executive Power modifies the promotional regime for construction activities considered 'great economic dimension projects'

The modifications expand the regime to investment projects of more than 20,000,000 Indexed Units (approx. US $2,250,000) and establish exemptions for certain investment projects.

In Decree No. 316/020, the Uruguayan Executive Power modifies certain aspects of Decree No. 138/020 (see Tax Alert 2020-1613) on construction projects considered "great economic dimension projects."

The modifications include:

  1. Allowing investment projects of more than 20,000,000 Indexed Units (approx. US $2,250,000) to qualify for the promotional regime
  2. Requiring investment projects of less than 60,000,000 Indexed Units (approx. US $7,750,000) to have at least 5% set aside as a common area
  3. Allowing investment projects carried out within 48 months of the date the decree entered into force to qualify for the regime
  4. Establishing a corporate income tax exemption equal to 5% of the investment for investment projects of 20,000,000 to 40,000,000 Indexed Units (approx. US $2,250,000 to $5,000,000) and a 10% exemption for investment projects of more than 40,000,000 to 60,000,000 Indexed Units (approx. US $5,000,000 to US $7,750,000)

The decree was published in the Official Gazette, and entered into force on, December 2, 2020.


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 (