- Tax Benefits for Food Donors: The new regulations allow donors, including public and private entities involved in food production and distribution, to receive a full deduction of value-added tax (VAT) on the acquisition of donated food items, incentivizing food donations for human consumption.
- Corporate Income Tax Deductions: Donors can also benefit from a corporate income tax deduction for food donations, limited to the lower of 2% of their gross income for the fiscal year or 5% of their taxable net income from the previous fiscal year, promoting corporate social responsibility.
- Compliance Requirements: To qualify for these tax incentives, entities must register with the General Tax Directorate, comply with National Food Safety Regulations, enter collaboration agreements with registered intermediaries, and properly document donations through specific vouchers or receipts indicating the tax benefits.
Source EY
Latest Posts in "Uruguay"
- Temporary VAT Exemption for Culinary, Event, and Car Rental Services Under Decree No. 220/025
- Uruguay Clarifies Taxation of SEO Blogging Income and VAT Regime Eligibility
- Uruguay Issues Decree Granting Tax and Import Benefits for MSMEs in Brazil Border Areas
- Uruguay Reinstates Zero-Rate VAT for Nonresident Tourists from Nov. 2025 to April 2026
- Uruguay Temporarily Exempts Non-Residents from VAT on Select Tourism Services Paid with Foreign Cards
