Published and draft legislation - Uruguay

Wealth Tax exemption for microfinance transactions

Decree 302/016 exonerates productive microfinance enterprises from Wealth Tax

The decree exempts the assets of loan management companies that are concerned exclusively with carrying out productive microfinance transactions from Wealth Tax.

The exemption will apply to loan management companies with commercial microfinance portfolios that represent at least 60% of their entire financial activity.

The measure seeks to make access to credit easier for micro-enterprises and family-run producers by making interest rates cheaper.

The decree classifies as micro-enterprises those that, when the credit is originated, have fewer than four employees, and annual revenue of less than 2 million indexed units (IU), equivalent to around UYU 6 million.

Family-farms registered in the Ministry of Farming & Fisheries (MGAP: Ministerio de Ganadería, Agricultura y Pesca) that have chosen to pay the IMEBA Agricultural and Livestock Asset Transfer Tax are also included in this exemption.