The Ministry of Economy and Finance of Uruguay issued Decree No. 274/2015 which was published in the Official Gazette on 20^th October 2015. On the other hand on 17^th October 2015, the Resolution No. 4,126/2015 had been published in the Official Gazette which was issued by the tax administration.

Both the Decree and the Resolution control the granting of tax benefits regarding the application of electronic invoicing systems as from 1 January 2016.

The tax benefits are provided for investments made in electronic data processing equipment and software exclusively related to the development and implementation of a taxpayer’s electronic invoicing system.

A credit for corporate income tax purposes is granted for qualifying investments which is equal to 50% of the invested amount. But the credit cannot exceed 60% of the corporate income tax due for the fiscal year to which it applies. The excess can be carried forward up to 5 years.

An exemption will be provided for net worth tax applies for assets accepted by the tax administration as an initial investment made to set up the electronic invoicing system and the exemption applies during the entire useful lives of the assets.

The tax benefits will only be applicable on request to investments made up to 31 December 2016.

Taxpayers may automatically apply the tax benefits given that certain conditions are met. To apply automatically for the tax benefits the taxpayer will have to complete a specific form issued by the tax administration for that purpose and the taxpayer needs to keep such form and the documents related to the investments during the statute of limitation period or the periods in which the tax benefits apply, whichever is longer.

The Resolution and the Decree are applicable as from the date of their publication.