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Tax benefits extended for pandemic-affected businesses

Tax benefits extended for pandemic-affected businesses

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Through Law No. 19,898, the Senate and the House of Representatives of the Oriental Republic of Uruguay extend tax benefits for companies affected by the COVID-19 pandemic.

1. What are the tax benefits that will be extended?

  1. It is the exemption of 100% (one hundred percent) of the employer’s social security retirement contributions to the companies performing the following activities: 
    • Organization and realization of parties and events, whether with or without premises.
    • Organization and realization of national and international congresses or fairs.  Travel agencies.
    • Ground transportation of tourist groups and excursions, passengers in remises and taximeters, application drivers, and rental of vehicles without a driver.
    • Movie theaters, cinema distribution, and theaters.
    • Lodging and feeding included in Group 12, Subgroups 1, 2, 4, 7, and 7.1.
    • Artists and related non-advertising activities.
    • Rental, service, and support of filming equipment, and provision of audiovisual services for general non-advertising events.
    • Sports and recreational education, management of other sports facilities, and sports club activities.
  2. Likewise, the exemption from the payment of the Income Tax on Economic Activities by taxpayers performing the activities indicated in item a. above.
  3. In the same regard, the taxpayers of the Wealth Tax, whose main activity is included in item a. are exempted from making the corresponding payments on account.

2. Extension period of tax benefits

According to this Law, the exemption will apply to obligations accrued between July 1, 2021 and October 31 of the same year.

This set of measures provides some economic relief to companies that have been hit hard by the COVID-19 pandemic.

Source: Diario Oficial 01/10/21

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