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Forestry

The forestry sector is one of the most dynamic sectors in the Uruguayan economy. Since the Forestry Act (in 1987) to date, lumber plantation and timber extraction have increased fivefold, leading to important investments in the sawmill and cellulose industries.

Start doing business in Uruguay​

Opening
a Company

Environmental
management

Building works
and transport

Connection
to services

Sector specific
procedures

Trademarks
and patents

Hiring
of personnel

Opening a Company

Environmental management

Building works and transport

Connection to services

Sector specific procedures

Trademarks and patents

Hiring of personnel

Forestry specific procedures

These are within the Forestry Act N° 15,939 which establishes tax exemptions depending on the type of wood and its location.

Depending on the obtained classification, the following benefits may be accessible:

  • Income derived from harvesting is not computed for the purpose of IRAE (Income Tax on Economic Activities, which would represent 25% of the income).
  • Reduction of wealth tax: the value or its extensions do not add towards the calculation of wealth tax.
  • Rural real estate tax exemption.


Below you can access the areas declared as national forestry priority.

ACCESS AREAS
To access these benefits, the General Forestry Directorate must approve the management project for the use and regeneration of the forest land.
Process which includes the preparation of a technical agronomical-forestry and notarized report.
CARRY OUT PROCEDURE
Process by which the issuance of the Certificate for tax exemption due to forested area is requested, to be filed with the local government office, BPS (Social Security Entity) and DGI (General Tax Directorate).
CARRY OUT PROCEDURE
Process by which there is a Declaration of Plantation. The Declaration of Planted Forest includes a technical report which shows the completion of a stage of the Approved Plan, accompanied by an Affidavit of the interested party.
Make a statement
According to the provisions established in articles 1 and 2 of Decree 405/2021 for forest plantations between 40 and 100 affected hectares then it is necessary to request the registration of the project in order to start planting. Here you can access the online procedures and its instructions.
CARRY OUT PROCEDURE
INSTRUCTIONS
According to the provision of article 12 of Decree 405/2021, those interested in new forestry plantations that cover 100 or more hectares in an establishment or production unit, that will be developed exclusively on already forested land and whose previous plantations have not been subject to prior environmental authorization, must carry out the Special Environment Authorization process for forestry plantations.
CARRY OUT PROCEDURE
Tax exemptions

These are within the Forestry Act N° 15,939 which establishes tax exemptions depending on the type of wood and its location.

Depending on the obtained classification, the following benefits may be accessible:

  • Income derived from harvesting is not computed for the purpose of IRAE (Income Tax on Economic Activities, which would represent 25% of the income).
  • Reduction of wealth tax: the value or its extensions do not add towards the calculation of wealth tax.
  • Rural real estate tax exemption.


Below you can access the areas declared as national forestry priority

ACCESS AREAS
To access these benefits, the General Forestry Directorate must approve the management project for the use and regeneration of the forest land.
Forest Planting Project Study
Process which includes the preparation of a technical agronomical-forestry and notarized report.
CARRY OUT PROCEDURE
Certificate for Forest Tax Exemption
Process by which the issuance of the Certificate for tax exemption due to forested area is requested, to be filed with the local government office, BPS (Social Security Entity) and DGI (General Tax Directorate).
CARRY OUT PROCEDURE
Declaration of Planted Forest
Process by which there is a Declaration of Plantation. The Declaration of Planted Forest includes a technical report which shows the completion of a stage of the Approved Plan, accompanied by an Affidavit of the interested party.
Make a statement
Environmental Registry of Forests
Between 40 and 100 affected hectares
According to the provisions established in articles 1 and 2 of Decree 405/2021 for forest plantations between 40 and 100 affected hectares then it is necessary to request the registration of the project in order to start planting. Here you can access the online procedures and its instructions.
CARRY OUT PROCEDURE
INSTRUCTIONS
More than 100 affected hectares
According to the provision of article 12 of Decree 405/2021, those interested in new forestry plantations that cover 100 or more hectares in an establishment or production unit, that will be developed exclusively on already forested land and whose previous plantations have not been subject to prior environmental authorization, must carry out the Special Environment Authorization process for forestry plantations.
CARRY OUT PROCEDURE