Yesterday the Executive Branch announced a battery of measures to address the effects of COVID-19 on the country, including some on tax matters.
The Ministry of Economy and Finance (MEF) indicated that the Tax Administration (Dirección General Impositiva - DGI) deferred payment of “minimum VAT”[1] for tax months February and March. It will be payable as of the month of May, in six equal, consecutive, monthly installments (without interest). These are Paragraph E companies whose income does not exceed UYU 1,331,600 and who pay UYU 3,980 monthly.
All other DGI due dates set for the coming days of March are postponed until March 27, 2020 (except for government corporations).
As for Social Security (BPS) contributions, the beneficiaries will be single-tax payers (“monotributistas”)[2], sole proprietorships and partnerships (“sociedades personales”) with up to 10 employees, who contribute to the “Industry and Commerce” system. Single-tax payers make a single payment to BPS that ranges from UYU 1,717 to UYU 6,449 per month.
The Executive Branch announced that the State will subsidize payment of 40% of contributions of single-tax payers and of owners and partners of such partnerships for tax months March and April of this year. The remaining 60% payment is postponed until the month of June and will be payable in six equal, consecutive, monthly installments (without surcharges).
[1] “Paragraph E” companies’ annual billings cannot exceed UYU 1,331,600.
[2] These are economically small companies that sell goods and services exclusively to end consumers, whose annual billings cannot exceed UYU 798,960 for sole proprietorships and UYU 1,331600 for de facto companies (“sociedad de hecho”). Moreover, they cannot have assets for a value in excess of UYU 665,800.