Tax Exemption for Micro and Small Enterprises in Border Zones

Tax measures are enacted to support micro and small enterprises located in border areas.

What are these measures?

1. Exemption of 100% (one hundred percent) from the accumulated benefit obligation to the social security to the companies that simultaneously comply with the following conditions:
   • Its main activity is retailing in supermarkets and warehouses;
   • The tax domicile of the main premises is located in a border department with a land border crossing within a maximum radius of 60 (sixty) kilometers from the border crossing; and 
   • The gross income in the last fiscal year before the effective date of this law does not exceed IU 4:000,000 (four million indexed units) at the effective quotation at the closing of the fiscal year. In fiscal years less than 12 (twelve) months, income shall be considered on a proportional basis.
2. Taxpayers who comply with the conditions of paragraphs a) and b) of the previous point are exempted from the payment of the unified tax benefit Monotributo and the unified tax benefit Monotributo Social MIDES, except the contributions to the National Health Fund, if applicable.
3. Taxpayers whose income does not exceed annually the amount established by the Executive Power and who comply with the conditions of paragraphs a) and b) of item 1 of this law are exempted from the payment of the tax obligation (Value Added Tax).
4. Taxpayers of the Income Tax on Economic Activities included in Article 1 of this law are exempted from the monthly payment of said tax.
5. Likewise, the taxpayers of the Wealth Tax included in Article 1 of this law are exempted from making the corresponding payments on account.

Effectiveness of these measures?

The provisions of this law apply to tax obligations accrued in the following 12 (twelve) months as of the date determined by the Executive Power, term set forth within the first year starting from the enactment of this law.

For more information on this law, please follow the link https://www.impo.com.uy/diariooficial and go to page 2 of the Section: Documents.

Source: Diario Oficial 21/10/21