Taxpayers are no longer required to submit certain information to the tax administration (Dirección General de Impuestos—DGI) with respect to income tax deductions or value added tax (VAT) calculations related to expenses incurred for marketing and advertising services. An executive decree, issued in January 2014, provides relief for taxpayers with respect to certain claims for marketing and advertising expenses.
Under these new rules, payments for marketing and advertising service expenses must, among other requirements:
- Be made to service providers that are subject to Uruguay’s income tax and VAT; and
- Be for an amount that does not exceed a certain threshold amount.
Provided that these conditions are fulfilled the taxpayer does not need to submit further information on these expenses to the tax administration. This provision should save time and compliance costs for taxpayers in Uruguay.
