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February 6, 2024

Uruguay introduces a modification to the Corporate Income Tax regulations for 'Small Companies'

  • The Uruguayan Government has added an article to the Corporate Income Tax regulations, providing that taxpayers that have never been included in the "Small Companies" exemption may, only once, be included in it, under the terms and conditions established by the regulations.

Under a new regulatory provision, explained in Decree No. 25/024, Corporate Income Tax taxpayers that have never been included in the "Small Companies" exemption may opt only once to be included in the exemption if at the end of the last fiscal year, as from 1 January 2024, their income does not exceed 305,000 Indexed Units (approximately US$44,790).

To make use of the option, the taxpayer must inform the Uruguayan Tax Authority (Dirección General Impositiva or DGI), under the DGI's terms and conditions, before the beginning of the fiscal year, or up to the month prior to the month in which the included income is obtained.

Decree No. 25/024 was published in the Official Gazette on 5 February 2024 and became effective on the publication date. 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