On 8 April 2020, Uruguay enacted Law No. 19,874, creating the “COVID-19 Solidarity Fund,” which is intended to mitigate the negative effects of the COVID-19 pandemic. The law also creates a new tax called the “COVID-19 Sanitary Emergency Tax” to fund the Solidarity Fund.
The sanitary emergency tax applies to nominal remuneration and benefits, in cash or in kind, derived from personal services provided to the state, departmental governments, autonomous state entities and decentralized services, re…