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February 2, 2024

Uruguayan Government extends period to invest in large economic projects

  • A new Executive Office Decree extends the time to execute investments under "large economic dimension projects" promotional regime.
  • The new Decree is pending publication in the Official Gazette.

Executive Office Decree No. 23/024, issued on 29 January 2024, modifies the promotional regime allowing investment projects carried out within 72 (previously 48) months of the date that Decree No. 138/020 entered into force to qualify for the regime. The projects must be presented before 1 January 2025 and the investment must be executed before 1 October 2027.

Additional decrees have modified Decree No. 138/020 since it entered into force in May 2020 to regulate "large-economic dimension" projects. Decree No. 138/020 established tax incentives for the construction of private initiative urbanization developments and the construction of buildings intended to be leased or sold as offices or homes. (See EY Global Tax Alert, Uruguay's Executive Power extends tax incentives for construction activities, dated 19 June 2020.)

Decrees issued in 2022 and 2023 extended the deadline for submitting projects to the Application Council (COMAP) and the period to make the investments under the promotional regime. Decree No. 155/022 extended the submission deadline from 31 December 2022 to 31 December 2023, and the period to make the investment from 30 April 2025 to 30 September 2026 (see EY Global Tax Alert, Uruguay extends deadline for submitting large economic projects to Application Council to 31 December 2023, dated 7 June 2022). And, Decree No. 248/023 extended to 31 December 2024 the deadline for submitting projects to COMAP and extended to 30 September 2027 the period to make the investment under the promotional regime.

New Decree No. 23/024 is pending publication in the Official Gazette and will be effective from publication. It can be accessed here (only in Spanish).

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Contact Information

For additional information concerning this Alert, please contact:

EY Uruguay, Montevideo

Ernst & Young LLP (United States), Latin American Business Center, New York

Ernst & Young LLP (United Kingdom), Latin American Business Center, London

Ernst & Young Tax Co., Latin American Business Center, Japan & Asia Pacific

Published by NTD’s Tax Technical Knowledge Services group; Carolyn Wright, legal editor