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14 January 2026

Uruguayan Ministry of Economy and Finance amends investment projects regime

  • On 23 December 2025, Uruguay's Ministry of Economy and Finance issued a decree modifying the investment projects regime, with the new provisions effective from 1 February 2026.
  • The investment execution period has been reduced from 10 to 5 fiscal years, with potential extensions for larger projects, necessitating faster project completion.
  • The tolerance margin for projects has been decreased from 20% to 10%, which may affect the assessment of project compliance and benefits.
  • Affected entities should evaluate the implications of these changes, particularly for large-scale projects, and consider filing under the previous regime before the 30 April 2026 deadline if applicable.
 

On 23 December 2025, the Uruguayan Ministry of Economy and Finance issued Decree No. 329/025, introducing the following modifications to the investment projects regime, in addition to other changes.

Investments execution period: This period has been reduced from 10 to 5 fiscal years, with extensions of up to 10 years for projects exceeding 180 million Uruguayan pesos (UYU180m) (approximately US$29.7m) or extension of up to two years in cases of force majeure.

Tolerance margin: This margin has been reduced from 20% to 10% over the total matrix score at the end of the indicators schedule.

Incentives for micro, small and medium companies: An additional 15% benefit has been provided, along with two additional years to use the benefit, for corporate income tax (CIT) purposes, over the one resulting from the matrix.

Large-scale investment projects:

Projects exceeding UYU180m (approximately US$29.7m) may qualify for a CIT exemption of 100% of the eligible investment amount and a term of 22 years to use the benefits if the following conditions are met:

  • The project is filed by 31 December 2027.
  • The project is fully executed by 31 December 2029.
  • At least five points are obtained on the employment indicator and four points on the technological adequation, investigation, innovation and development indicator.

Projects exceeding UYU300m (approximately US$49.5m) may qualify for a CIT exemption of 100% of the eligible investment amount and a term of 24 years to use the benefits if the following conditions are met:

  • The project is filed by 31 December 2028.
  • The project is fully executed by 31 December 2031.
  • At least five points are obtained on the employment indicator and four points on the technological adequation, investigation, innovation and development indicator.

Entry into force: The decree will enter into force on 1 February 2026. Until 30 April 2026, it will remain possible to file projects under the previous regime (Decree No. 268/020).

The Decree has not yet been published in the Official Gazette; it can be accessed here (in Spanish only).

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Contact Information

For additional information concerning this Alert, please contact:

EY Uruguay, Montevideo

Published by NTD’s Tax Technical Knowledge Services group; Carolyn Wright, legal editor

Document ID: 2026-0195

 
 

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