According to legislation in force in Uruguay, activities by foreign entities outside Uruguay; and those with goods in transit or deposited in customs facilities, port facilities, bonded warehouses and free trade zones of Uruguay, are exempt from income tax, when the merchandise is neither originated nor destinated to Uruguay.
If the goods are bound for the Uruguayan customs territory, such sales should not exceed in the fiscal year 5% of the total amount of the transfer of goods in transit in order to preserve the exemption from income tax.
On 24 October 2013, Law 19.149, effective as of 1 January 2014, the same exemption was passed through for local companies. Accordingly, Uruguayan companies are exempt from income tax for the activities carried out abroad and in the customs area, port customs areas, customs warehouses and free trade zones in Uruguay, on condition that such goods have neither origin nor destination Uruguay
Also, if the goods enter Uruguay and the sale thereof exceeds the limit of 5% of the total amount of transactions of the fiscal year, the income arising in domestic sales shall only be taxable, but the exemption remains for transfers of goods outside Uruguay.