The Chamber of Deputies of Uruguay approved the accountability bill on 5 October 2016 after it was modified by both the deputies and the senators’ chambers.
According to the approved accountability bill the adjustment for inflation for corporate income tax (CIT) purposes will apply only when the variation in the Consumers Price Index accumulated over the 36-month period previous to the current fiscal year-end exceeds 100%.
For calculating the notional dividends, the CIT taxpayers will be able to deduct from their taxable amount of dividends the increase on gross working capital(the difference between the working capital determined on the last fiscal year and the first fiscal year in which CIT was assessed, adjusted by the Consumer Price Index.) and the  deduction will be limited to 80% of the amount of investments allowed to be deducted (e.g., fixed assets, intangible property and purchases of participations in the capital of resident entities). For this purpose the gross working capital will be the fiscal value of the taxpayer’s current credits due to sales, plus current inventory balances minus the current liabilities.
Distribution of profits made by entities which provide independent personal services and that have chosen to be included in the corporate income tax will be subject to tax if they are made after 31 December 2016.
