The Law Today

Publication of Law No. 21.256 establishing tax measures for economic and employment recovery

03 Sep 2020


On September 2, 2020, Law No. 21.256 was published, establishing tax measures that are part of the emergency plan for economic and employment reactivation within a medium-term fiscal convergence framework.

This new law, among other things, establishes the following:

a) A transitory decrease of the First Category Tax rate to 10% for companies under the Pro-SME Regime, with respect to the income they receive or accrue during business years 2020, 2021 and 2022.

b) The option for VAT taxpaying companies under the Pro-SME Regime that meet the requirements set forth in this law to request a refund of the accumulated remainder of the VAT tax credit determined in the VAT returns for the months of July, August or September 2020.

c) The option for taxpayers who declare the First Category Tax on effective income determined according to complete accounting to depreciate instantly and integrate the physical assets of the fixed assets acquired new or imported between June 1, 2020 and December 31, 2022. This exceptional depreciation regime will also be applicable to certain intangible assets acquired by this class of taxpayers during the same period for the interest, development or maintenance of the company.


In case you require additional information on this matter, you may contact Rafael Valdivieso, and/or Martín Hudson,