Uruguay has published Law 19.993 in the Official Gazette, which provides for the introduction of tax exemptions for micro and small enterprises located in border areas. The exemptions include:

• A 100% exemption from employer's retirement contributions for companies that meet the following conditions:
  • the company's main activity is retail trade in supermarkets and warehouses;
  • the company's tax address (fiscal domicile) is located within a border department with a land border crossing and within 60km of a border crossing;
  • the company's gross income in the preceding fiscal year does not exceed 4 million indexed units (UI);
• Taxpayers that meet the first two conditions above are exempted from the payment of the single tax under the monotributo or monotributo social MIDES regimes, except for the contribution to the National Health Fund, if applicable;
• Taxpayers qualifying as micro-enterprises that meet the first two conditions above are exempted from minimum monthly VAT payment obligations;
• Taxpayers of corporate income tax (IRAE) that meet all the above conditions are exempted from monthly advance IRAE payments, with the amount that would have been paid provided as a tax credit, without the right to a refund; and
• Taxpayers of net wealth tax that meet all the above conditions are exempted from making corresponding payments on account, with the amount that would have been paid provided as a tax credit, without the right to a refund.

Regarding the exemption from employer's retirement contributions, the exemption applies for company owners, partners, and dependent employees working at the qualifying location. Additional criteria for the exemption may also be established.

The law provides that the exemptions will apply to tax obligations accrued in a 12-month period beginning from a date to be determined by the Executive. This date is to be established within one year from the date of the law's publication, 21 October 2021.