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6.3. Depreciation and Amortization

When calculating Uruguayan taxable income, assets owned by an enterprise are normally depreciated over their normal useful life using the straight-line method. The following are the applicable rates for various asset types.

Urban buildings 2%
Rural buildings 3%
Machinery and equipment 10%
Motor vehicles 10%
Office equipment 10%

Other rates may be used if economically justified and approved.

Intangible Assets

Goodwill, is not eligible for depreciation/amortization. Other intangible assets can be amortized on a straight-line basis over their expected useful life. If the expected useful life cannot be determined, the amortization period is 10 years. In either case, the useful life of the asset can only be changed with the approval from the tax authority.


Effective from 1 January 2018, software is eligible for amortization if:

  • income derived from the software is subject to tax in Uruguay or abroad; and
  • the effective tax rate applicable to the income is at least 25% (corporate income tax rate).