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November 19, 2024
2024-2122

Uruguayan Executive Power grants tax incentives to telecommunications entities

  • The Executive Power of Uruguay has approved new tax benefits for investments made by telecommunication entities that meet certain conditions.
 

Decree No. 281/024, published in the Official Gazette on 31 October 2024, states that telecommunication entities that perform electronic surveillance activities for the investigation of crimes will benefit from a series of tax exemptions applicable to investments in electronic data processing equipment and software, made from the date of the decree until 30 June 2025. These exemptions include:

  • Corporate Income Tax exemptions, not to exceed 12,000,000 Indexed Units (approximately US$1.84m), with a period of three fiscal years to use the benefit
  • Net Wealth Tax exemptions for the investments in electronic data processing and surveillance equipment

Affected multinational entities with interests in Uruguay should become familiar with Decree No. 281/024, which 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
 

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