Decree No. 138 of 2020 recently published introduces a new promotional regime for real estate investments, under Law No. 16.906 of 1998, Investment Law.
Conditions for applying to benefits
Projects without registration before the publication of this Decree:
Projects previously registered (initiated or not):
Investment projects should be submitted before the 31st of December of 2021 in COMAP.
The maximum period for using this exemption is 10 years, counted since the first year with positive taxable income (up to 4 fiscal years since the promotional declaration).
In every fiscal year, the exemption must not exceed:
In case investment is not accomplished in the maximum granted period (60 or 48 moths, maximum 30/04/2025), when the percentage of completion is at least 50% Income Tax exemptions would be apportioned considering execution progress.
Verónica Rodríguez, Auren Uruguay