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October 15, 2021

Uruguay establishes application date for tax exemptions for leasing social interest housing

The corporate income tax, personal income tax and nonresident income tax exemptions for income derived from leasing social interest housing will apply from 21 April 2020.

Uruguay’s Executive Branch has established (Decree 283/021) the corporate income tax (CIT), personal income tax (PIT) and nonresident income tax (NRIT) exemptions for income derived from leasing social interest housing (i.e., low-income housing) retroactively apply from 21 April 2020.


The Law for the Promotion of Social Interest Housing (Decree 355/011) established tax incentives for the construction of social interest housing. Decree 129/020 modified Decree 355/011 to add CIT, PIT and NRIT exemptions for lease income derived in the year in which the investment project is finished and the following nine years. The exemptions are 100% or 60% depending on (1) the zone where the construction takes place, and (2) whether there are guarantees ensuring the lessee is capable of paying the rent.

Decree 283/021

Decree 283/021 clarifies that the CIT, PIT and NRIT exemptions apply retroactively from 21 April 2020, regardless of the tax regime in which the taxpayer is at the time it requests the exemptions.

Decree 283/021 was published in the Official Gazette and went into effect on 1 September 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


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