Investment Promotion Law -  Tax Exemptions

Our firm has vast experience assisting clients with obtaining tax breaks under Uruguay’s tax-exemption regulation. Roughly 25% of the overall private investment made in the country chooses to request some form of tax exemptions under the Investment Promotion Law # 16.909.

• Investments of any size are eligible for exemptions on:
• Corporate Income Tax (up to 100% of the amount invested)
• Value Added Tax on goods purchased.
• Asset Tax.
• Customs duties.

In order to obtain tax benefits, the investor must file a plan before a committee within the Finance Ministry (known as COMAP), which studies the project and grants the tax breaks based on the impact on certain factors, mainly: the creation of new jobs, the generation of exports, the incorporation of new technology, and the use of clean energy.