Sign up for tax alert emails    GTNU homepage    Tax newsroom    Email document    Print document    Download document

July 1, 2021

Uruguay expands COVID-19 tax relief measures

The law expands the list of activities that qualify for the COVID-19 tax relief measures and establishes tax exemptions.

On 22 June 2021, Uruguay enacted Law 19,956 to amend the COVID-19 tax relief measures initially introduced in Law No. 19,942 of 2021.

According to the law, the Government intends to provide additional support to taxpayers that are facing financial hardships caused by the COVID-19 pandemic. Benefits under the law include:

  • Expanding the list of activities that benefit from the COVID-19 tax relief measures originally introduced in Law 19,942 of 2021 to include border tax-exempt shops, radio operator desks (i.e., the communication systems used by taxis), artists and related non-advertising activities, and sports and recreational education, management of other sports facilities and sports club activities
  • Exempting certain employers from paying social security pension contributions (previously the exemption was 50%)
  • Establishing a corporate income tax exemption for the minimum monthly corporate income tax payments accrued from January through June 2021
  • Establishing an exemption for the advanced payments of net wealth tax accrued from January to June 2021
  • Establishing a tax credit for advance payments of income taxes made from January to June 2021

The law authorizes the Uruguayan Executive Power to develop the criteria for determining which taxpayers will qualify for the benefits.

The law was published in the Official Gazette on 22 June 2021.


For additional information with respect to this Alert, please contact the following:

EY Uruguay, Montevideo

Ernst & Young LLP (United States), Latin American Business Center, New York

Ernst & Young Abogados, Latin America Business Center, Madrid

Ernst & Young LLP (United Kingdom), Latin American Business Center, London

Ernst & Young Tax Co., Latin American Business Center, Japan & Asia Pacific


The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.


Copyright © 2024, Ernst & Young LLP.


All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.


Any U.S. tax advice contained herein was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.


"EY" refers to the global organisation, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.


Privacy  |  Cookies  |  BCR  |  Legal  |  Global Code of Conduct Opt out of all email from EY Global Limited.


Cookie Settings

This site uses cookies to provide you with a personalized browsing experience and allows us to understand more about you. More information on the cookies we use can be found here. By clicking 'Yes, I accept' you agree and consent to our use of cookies. More information on what these cookies are and how we use them, including how you can manage them, is outlined in our Privacy Notice. Please note that your decision to decline the use of cookies is limited to this site only, and not in relation to other EY sites or Please refer to the privacy notice/policy on these sites for more information.

Yes, I accept         Find out more