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Telework Option Expanded to Free Zone Enterprises in Uruguay — Orbitax Tax News & Alerts

Uruguay on 30 September 2022 issues a Decree extending the option of telework to employees of Free Zone enterprises. The telework option had been introduced in the country through Law 19.978 of 20 August 2021. However, its application to Free Zone enterprises posed a problem since one of the Free Zone eligibility conditions is for the enterprise to carry out all its activities from within the Free Zone. The Decree relaxes the Free Zone eligibility conditions by permitting telework within, inter alia, the following constraints:

  • Free Zone enterprise employees may carry out their employment activities from their private dwellings in Uruguay;
  • The telework extension does not permit the opening of offices outside the Free Zone;
  • At least 90% of the relevant enterprise's employees are required to be physically present within the enterprise's offices in the Free Zone for at least 60% of their work time each month. The physical presence work for such employees may not be less than 1000 hours per month.