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LatinNews Daily - 19 March 2021

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In brief: Uruguay approves Covid-19 relief for companies

* Uruguay’s congress has approved a law which aims to bring relief to micro, small and medium-sized enterprises (Mipymes) as they continue to struggle in the context of the coronavirus (Covid-19) pandemic. Amongst other measures, the approved law permits a 50% exemption on employer contributions to social security, for firms with 19 or fewer employees and with an annual turnover not exceeding US$1m last year. Companies which do not fit in this category, but work in a number of sectors such as events organisations or services to airports, will receive a 50% exemption on employer contributions to pensions. These measures are currently in place until June. Uruguay’s tax authority (DGI) has acknowledged that these measures – and others – will cause revenue losses, which it aims to make up thanks to the ‘fondo solidario Covid-19’, a Covid-19 fund set up last year to counter the pandemic’s impacts.