Reform To Free Trade Zones Law 19,566 In Uruguay

The Free Trade Zones in Uruguay have high growth potential for your business but it is imperative that you understand the reform to the new laws.

Uruguay was long considered one of the countries that had harmful regimes in terms of adverse tax competition, but that all changed when they committed to modify it in 2018. The law is now amended with new points spelled out in Law 19,566 highlighting the free zones and regulations to match international standards, such as BEPS and other demands from Organization for Economic Cooperation and Development (OECD). Uruguayan regulations must accompany international standards, implementing limitations and controls for companies that decide to settle in the free zone.

Free Zones

Free Zones in Uruguay are part of a set of policies that were created to boost investment, exports, employment and international economic integration. Free Trade Zones can be public or private, and they are all authorized and controlled by the General Business Administration Free Zone Area. There are currently eleven Free Zones in Uruguay in the cities of Canelones, Colonia, Colonia Suiza, Florida, Fray Bentos, Libertad, Montevideo, Nueva Helvecia, Nueva Palmira and Punta Pereira.

The current regime is governed by Law 15,921 with the amendments introduced by Article 65 of Law No. 17,292, Article 23 of Law 17,781 and indirectly by Law 18,083 and Law 19,566. There are three types of subjects that can be adopted by companies in relation to Free Zones:

Direct User

one who contracts with the Operator in exchange for a price freely agreed with him, and obtains the right to operate in a Free Zone Indirect User

one who contracts, no longer with the operator but with the direct user, in exchange for a price agreed by the latter, obtaining as consideration the right to operate in the Free Zone using their facilities, such as, for example, using of your deposits Free Zone Operators

is the natural or legal person that provides the necessary and sufficient infrastructure for the establishment and operation of a Free Trade Zone. The Free Trade Zone can be exploited by the State or duly authorized individuals. The private ones are managed by individuals and authorized by the Ministry of Economy and Finance, which supervises and controls them through the Free Zones Area of the General Directorate of Commerce.

Creation of Free Zones in Uruguay

To create a Free Trade Zone in Uruguay, a government resolution is necessary in which details are given...