OECD features and highlights Uruguay

By Pittaluga Abogados

The Organization for Economic Cooperation and Development (OECD) presented an updated report on regimes with harmful tax practices and Uruguay had no observations. Years ago, the OECD had announced for example that local free zones were among jurisdictions with “harmful tax incentives” and did not respect the measures to fight evasion promoted by the multilateral agency.

The government responded to the call for attention and promoted a series of regulatory changes, the most relevant being the update of the free zone law, approved at the end of 2017 and which was finally regulated last year.

The OECD report published last week indicated that Uruguayan free zones are a "non-harmful" system and that it underwent "modifications", complying with the "substance requirement". At the free zone level, the new rules refine the requirements to receive the installation permit, improves controls on already installed users and establishes shorter authorization terms.

Source: El País