|
On 8 March 2023, the Uruguayan Executive Power proposed a bill to temporarily exempt the agricultural sector from making advanced payments of Corporate Income Tax and Net Wealth tax for the period 1 January 2023 to 30 June 2023.
In most cases in the agricultural sector, when assets directly dedicated to agricultural exploitation exceed 30 million index units (approximately US$4.3 million) taxpayers are required to pay a surtax ranging from 0.75% to 1.5% depending on the value of their assets (for net wealth tax scope). The payment of this surtax will also be exempt for the aforementioned period.
For Corporate Income Tax, the exemptions only apply to the agricultural activities that the taxpayer develops and for Net Wealth tax, they only apply for the patrimony directly dedicated to agricultural exploitation.
Even though the measures are initially proposed for the first six months of 2023, the bill gives the Executive Branch, the power to extend them in the future, but only once.
As noted, the bill was submitted to Parliament on 8 March 2023 and is currently under discussion. It can be accessed here (pdf).
For additional information with respect to this Alert, please contact the following:
EY Uruguay, Montevideo
Martha Roca
María Inés Eibe
Piero de los Santos
Lucia Giagnacovo
Catalina Fernández
Ernst & Young LLP (United States), Latin American Business Center, New York
Lucas Moreno
Ana Mingramm
Pablo Wejcman
Enrique Perez Grovas
Ernst & Young LLP (United Kingdom), Latin American Business Center, London
- Lourdes Libreros
Ernst & Young Tax Co., Latin American Business Center, Japan & Asia Pacific
Raul Moreno, Tokyo
- Luis Coronado, Singapore
For a full listing of contacts and email addresses, please click on the Tax News Update: Global Edition (GTNU) version of this Alert.
