Uruguay introduces changes in deduction of losses from previous years in income tax

The Budget Law that is being analyzed in the Parliament of Uruguay includes modifications to the liquidation of the Income Tax on Business Activities that benefit the taxpayer.

In the current situation, companies can deduct tax losses of up to 5 previous years up to 50% of the amount to be paid in this annual settlement. The proposed modification eliminates the limit of 50% previously mentioned, being able to offset, if the case arises, up to 100% of the tax payable for the year.

In conclusion, in the case of clients who wish to have companies in Uruguay with the idea of developing their business in the country in the future, they will have the possibility of compensating the losses assumed prior to the activation in full in the financial years. initials of the operation, being the same, a payment on account and not a sunk cost.