The law expands the list of activities that qualify for the COVID-19 tax relief measures and establishes tax exemptions.

On June 22, 2021, Uruguay enacted Law 19,956 to amend the COVID-19 tax relief measures initially introduced in Law No. 19,942 of 2021.

According to the law, the Government intends to provide additional support to taxpayers that are facing financial hardships caused by the COVID-19 pandemic. Benefits under the law include:

• Expanding the list of activities that benefit from the COVID-19 tax relief measures originally introduced in Law 19,942 of 2021 to include border tax-exempt shops, radio operator desks (i.e., the communication systems used by taxis), artists and related non-advertising activities, and sports and recreational education, management of other sports facilities and sports club activities
• Exempting certain employers from paying social security pension contributions (previously the exemption was 50%)
• Establishing a corporate income tax exemption for the minimum monthly corporate income tax payments accrued from January through June 2021
• Establishing an exemption for the advanced payments of net wealth tax accrued from January to June 2021
• Establishing a tax credit for advance payments of income taxes made from January to June 2021

The law authorizes the Uruguayan Executive Power to develop the criteria for determining which taxpayers will qualify for the benefits.

The law was published in the Official Gazette on June 22, 2021.

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