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July 12, 2023

Uruguay makes temporary corporate income tax benefit for promoters and construction companies permanent

In Decree No.195/023 (issued 27 June 2023), Uruguay makes permanent a corporate income tax benefit for promoters and construction companies that was set to expire after 28 February 2024.

Previously, promoters and construction companies could deduct, for corporate income tax purposes, 100% of the cost of real estate acquired from 1 July 2007 through 28 February 2024.

The decree eliminates the date restrictions, allowing these costs to be fully deducted at any time, as long as a promoter or construction company built the newly acquired real estate or used a special type of trust for construction projects. In addition, all projects must be registered with the Social Security Bank (Banco de Previsión Social, BPS).

Decree No.195/023 is effective as of 6 July 2023, its date of publication in the Official Gazette. The decree can be accessed here (in Spanish).


Contact Information
For additional information concerning this Alert, please contact:
EY Uruguay, Montevideo
   • Rodrigo Barrios (
   • María Inés Eibe (
   • Piero de los Santos (
   • Lucia Giagnacovo (
   • Emiliano Bentancourt (
Ernst & Young LLP (United States), Latin American Business Center, New York
   • Lucas Moreno (
   • Ana Mingramm (
   • Pablo Wejcman (
   • Enrique Perez Grovas (
Ernst & Young LLP (United Kingdom), Latin American Business Center, London
   • Lourdes Libreros (
Ernst & Young Tax Co., Latin American Business Center, Japan & Asia Pacific
   • Raul Moreno, Tokyo (
   • Luis Coronado, Singapore (

Published by NTD’s Tax Technical Knowledge Services group; Maureen Sanelli, legal editor