09 September 2025

Uruguay regulates food donations and grants tax incentives

  • On 20 August 2025, the Ministry of Economy and Finance issued Decree No. 179/005, regulating food donations for human consumption, effective from 1 September 2025.
  • To qualify for tax benefits, donors, including public and private entities involved in food production and distribution, must register with the General Tax Directorate and comply with National Food Safety Regulations.
  • Tax incentives include a corporate income tax deduction for donations up to 2% of gross income or 5% of taxable net income and a full deduction of value-added tax on the acquisition of donated food items.
  • Entities engaged in food donations should ensure compliance with the new regulations and documentation requirements to take advantage of the available tax benefits and enhance their corporate social responsibility initiatives.
 

On 20 August 2025, the Ministry of Economy and Finance issued Decree No. 179/005, which regulates Law No. 20,177 on the donation of food for human consumption.

This Alert highlights the main provisions of the Decree.

Donors may include public or private entities engaged in the production, processing, packaging, storage, distribution or marketing of food, including the cultivation of food products, production of food and beverages (excluding distilled alcoholic beverages) and wholesale or retail trade of food and beverages.

To participate in the regime, they must: (1) be registered in the General Tax Directorate's (DGI's) Taxpayer Registry; (2) comply with the National Food Safety Regulations; (3) enter into collaboration agreements with registered intermediary entities; and (4) properly document each donation.

Donations must be issued through specific vouchers or receipts, including a statement indicating that they are covered by the tax benefits provided under the regulation.

The following tax benefits are provided:

  • Corporate income tax: Deduction of donations up to the lower of the following limits: 2% of the gross income of the fiscal year or 5% of the taxable net income of the previous fiscal year
  • Value-added tax: Full deduction of the tax associated with the acquisition of goods and services that form part of the cost of the donated food
  • IMESI (a wholesale-level consumption tax; Impuesto Especifico Interno in Spanish): 0% rate applicable to donated nonalcoholic beverages and nonalcoholic bitters or aperitifs

Decree No. 179/025 was published in Official Gazette on 3 September 2025 and is effective as of 1 September 2025. 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

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

Document ID: 2025-1817