2025 Budget Accountability Bill: key proposed tax changes
The bill submitted to Parliament includes proposals affecting irrigation projects, housing cooperatives, transport, property transfer tax and dairy exports.
Uruguay’s Executive Branch submitted the 2025 Budget Accountability Bill to Parliament. In addition to economic and budget provisions, the bill proposes several tax changes.
Multi-property irrigation projects
Income derived from leasing rural property used for reservoirs or artificial lakes in qualifying multi-property irrigation projects would be exempt from corporate income tax, Category I personal income tax and non-resident income tax. Detailed conditions would be established by regulation.
Housing cooperatives and public transport
The proposal creates a credit for VAT included in goods and services directly used to build cooperative housing. It also authorises the Executive Branch to adjust VAT benefit limits for public transport according to cost structure, service model and the percentage of electric vehicles in each fleet.
Property transfer tax and dairy exports
For transfers of real estate upon death, the limitation period for property transfer tax would begin at the end of the calendar year in which the judicial declaration of heirs becomes final. From 2027, half of the revenue from the 2% tax on certain dairy exports would be allocated to INALE, while the other half would continue to fund LATU.
These measures are part of a bill and may change during the parliamentary process. Companies should therefore monitor the final text and subsequent regulations before acting on the proposals.
This material is provided for information only and does not replace professional advice tailored to a particular situation. Read the original Spanish version.