Tax Benefits for Investors
Indutrial Promotion.
Decree-Law 14.178
This DL applies to industrial activities declared of national interest by the Executive Branch and has the following benefits:
Saving Channeling system: natural and legal persons whom have done documented invest on nominatives shares to companies under DL 14.178, will be able to deduce from its Corporate income tax, the invested amount.
- Self-Saving Channeling system: anonymous property companies whom rise its integrated capital through reserves capitalization or profits distribution on shares, will able to deduce from its Corporate income tax, the invested amount.
DECREE 455/007
Corporate income tax exoneration up to 100% of the effective investment amount on fixed assets or non tangible. That benefit could be used from 3 to 25 years from the one a positive fiscal rent is obtained on investment categorization.
The investments done from January 1st to December 31, 2009 will be computed by 120% of investment amount in order to be taken under consideration to exonerated amount of Corporate income tax. New investments could have further benefits.
General Incentives
Applies to companies that pay Corporate income tax with industrial and agricultural activity. Wealth tax (IP) on fixed assets is exonerated. Value Added Tax (IVA) and Wealth Tax (IP) are exonerated when fixed assets goods are imported and Valued Added Tax is returned when those goods are acquired on internal market.
DECREE 58/009
It declares promoted, among 16.906 Law, naval and software industry (if they generate at least 150 qualified and direct jobs and if they improve a supplier's development program). These projects could be exonerated of Corporate income tax up to 100%.
Investments Promotion and Protection Law 16.906
This law declares of national interest the promotion and protection of investment made by national and abroad investors. It states the equality conditions on admission and treatment to national or abroad investors (previous authorization or register are not required). Uruguayan State guarantees free transferability of capital and profits overseas and free convertibility money system.
Executive Branch faculties
IP exoneration regarding fixed improvements, immaterial goods and new technologies goods. Fast depreciation regimen regarding Corporate Income Tax and IP on above mentioned goods.
Specific Incentives
Applies to sectorial activities and or Investment Projects declared promoted by the Executive Branch (this declaration is decreed by the Executive Branch with COMAP approbation). The Uruguayan Estate guarantees who invest under this regimen the benefits the law gives. There are also applicable fiscal benefits under DL 14.178.
Industrial Parks
LAW 17.547
It benefits who will be installed or settle down in Industrial Parks. They could access to Law 16.906 benefits.
DECREE 524/005
Declares the promotion and development of Industrial Parks of national interest. Declares promoted in the framework of law 16.906, the installation of Industrial Parks. It foresees benefit by self channeling of savings; increases the exemption of the rent up to 75% of the amount invested according to the location, to be used up to 6 financial years.
DECREE 2/012
It provides for users of industrial parks the possibility of obtaining additional benefits of up to 15% on the scale of indicators of the Law of Promotion of Investments, as well as the possibility of obtaining a tax credit for the amounts of employer contributions paid by the user company of the industrial park, for a period of up to five years.