Uruguay enacts accountability bill 2022

On 8 November 2023, the Parliament in Uruguay passed Accountability Bill Law 20,212, which includes amendments to the tax regulations. On June 30, 2023, the Executive Power presented the accountability bill to the Parliament for deliberation. The bill proposed several tax measures slated to take effect from 1 January 2024.

The proposed changes outlined in the bill introduced were upheld when the bill was passed on 8 November.

The changes are as follows:

  • The list of institutions eligible for the corporate income tax special donations regime has been updated.
  • Capital gains arising from the transfer of equity participations in tax resident in Uruguay will be exempted from Personal Income Tax, provided specific conditions are fulfilled.
  • The Executive Branch has the authority to provide taxpayers who owe Social Security Assistance Tax but have not paid their tax obligations with the opportunity to apply for a payment facilities regime until 31 December 2022.
  • The Executive Branch has the authority to implement a refund system for value-added tax (VAT) on specific purchases made at stores within a maximum distance of 50 kilometers from the border crossings with the Republic of Argentina and the Federative Republic of Brazil.
  • The Executive Branch has the authority to establish the limits and conditions for remote work in the Free Trade Zone. These may include factors such as the distance between the worker’s home and their usual workplace, the number of employees employed by the employer, or the significance of the employer’s associated investment. Additionally, it is stipulated that remote work cannot be conditioned upon a minimum number of employees that an employer must have.

The Law goes into effect on 1 January 2024.

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