Increased tax benefits granted under the Investment Promotion Regime
07 Oct 2020
Due to the economic impact of the COVID-19 pandemic, the government of Ufruguay has increased the tax benefits granted to eligible projects under the investment promotion regime. Eligible projects have been expanded to include:
- Companies carrying on activities in the tobacco industry (such industry was previously excluded from the regime).
- Investments made during the fiscal year in which the company submits the project to the Executive Power and those made in the preceding 6 months (previously, investments made during the 6-month period before the submission of the project were eligible, provided that they were necessary to carry out the project and did not exceed 20% of the total eligible investment).
- Investments made for a maximum period of 10 fiscal years from the submission of the project (previously, the maximum period was 5 years).
- Companies complying only with sectorial indicators (i.e. commercial, industrial, energy and mining, tourism, agricultural, livestock and fishing companies).
- The acquisition of electric vehicles. Companies may submit investment projects in this respect until 31 August 2023.
- Companies may increase, up to 30%, the total amount of investment submitted originally as part of the project (previously, companies could only increase such investment up to 20%).
These new rules were provided by Decree 268/020, published in the Official Gazette on 7 October 2020. Companies submitting investment projects from 1 May 2020 to 7 October 2020 may request the application of these new rules. Companies submitting investment projects within 60 business days following the publication of Decree 268/020 may request the application of previous rules.
Nature of measure:
Type:
-
Promotion and facilitation (Investment incentives)
Industry:
Inward FDI:
Yes
Outward FDI:
No
Sources:
