The Ministry of Economy and Finance provided the tax benefit to promote activity in the summer season.
He Ministry of Economy and Finance (MEF) approved the reduction of VAT for non-resident tourists until April 30, 2024, with the aim of promoting tourist activity in the country during the summer season.
In turn, the MEF decided another tax benefit, by suspending the withholding regime that applies to temporary rental contracts for tourism purposes, which are less than 31 days, with the aim of continuing to attract hundreds of thousands of tourists to the country.
Regarding the reduction of VAT, It emerged that the government seeks to extend between November 15 and April 30 of next year the benefit that was already being granted to attract citizens from other countries. In this sense, it will grant a tax credit for 10.5% of the gross value of the rented price.
Likewise, entities that manage properties intended for leasing will have the Personal Income Tax withholding regime suspended. (IRPF) and Non-Resident Income Tax (IRNR), also until April 30, 2024.
The measures are added to other benefits to boost tourism
The measure is added to others such as the one decided a month and a half ago, when the MEF extended by decree the 9% discount to VAT, as long as it is made with electronic payments. The benefit applies to gastronomic services, rental of vehicles without a driver, mediation services in the rental of properties with a tourist destination and catering services, among others.
However, there are several sectors that demand greater measures. Among them appears the Municipality of Maldonado (IMM), which proposes that the VAT “zero” and even becomes permanent, both for the hotel and gastronomic sectors.
Source: Ambito
