COVID-19 Practical Legal Guide

With the aim of providing clear and concise responses, Bergstein has prepared a practical legal guide with most frequently asked questions about COVID-19. The guide discusses hot topics on employment law, contracts and taxations.

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International Bid - 65 MW Solar Park Tender

Uruguay State-owned power company, UTE has launched a tender in order to increase the country’s solar capacity. The international bid is aimed at outsourcing the construction, operation and maintenance of a 65 MW solar park; UTE would supply the solar panels and substations. Construction should start during 2020. Due date for bid presentations will expire on 25 October 2019. Among others, Bergstein can assist interested bidders putting them in touch with financial institutions which have expressed an interest in funding the project.

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Country-by-Country Report in Uruguay: Its Implementation Will Begin Soon

Multinational enterprises (“MNEs”) with premises or operations in Uruguay must submit to the Tax Office a Country-by-Country report (“the CbC report”) along the OECD guidelines. Such report must contain detailed information on the branches and other MNE related entities around the world. Due date is 31 March 2019. The obligation to submit the CbC report applies to those MNEs with an annual worldwide gross income in excess of EUR 750 million. Even where such annual threshold is met by the group, MNEs are required to submit the Country-by-Country report only where such report is not filed in any other jurisdiction which has tax information exchange agreement (in force) with Uruguay (“TIEA”). Where the CbC report is filed by the MNE in other jurisdiction (and where there is a TIEA in place with Uruguay), MNEs are still required to submit --with Uruguay’s Tax Office-- a sworn statement, in order to identify: (a) the foreign entity responsible for the filing of the CbC report on behalf of the MNE group, (b) the controlling entity of the MNE group, and (c) the name of other entities of the MNE group in Uruguay, if any. Bergstein transfer pricing practice team assists multinational companies in the filing of the above information.

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Uruguay - Food Labeling - New Requirements

Uruguay´s Administration has recently enacted a decree that establishes the obligation of labeling those food products which contain an excessive amount of nutrients considered unhealthy (the “Decree”). In an effort to diminish the number of people who experience overweight, the Decree is aimed at providing consumers clear and detailed information about food products and their nutritional information. According to the Decree, ready-to-eat food products to be offered in Uruguay, must contain (in their packing) a black and white label with an octagonal shape. The label must read “EXTRA FAT”, “EXTRA SUGAR”, “EXTRA SODIUM”, as the case may be. The above labels will not be mandatory when the food products are destined to weight loss diets, dietary supplements or formulas for children. The manufacturers, importers and fractionators (“fraccionadores”) will be jointly and severally liable for the accuracy, readability and compliance of the new food labels. They will benefit from a 18-month period to adapt to the provisions of the Decree.

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Uruguay - A Third Pulp Mill on the Road

On November 7, 2017 UPM and the Uruguayan Government have sealed a preliminary letter of intent for the construction of a pulp mill in Uruguay, to be named “UPM 2” (“the PLOI”). Under the PLOI, UPM would agree to invest USD 4 billion to build a new pulp mill plant in the country. Uruguay would undertake to: (i) renovate the railroad connecting the plant with the export port (estimated investment: USD 1 b); (ii) execute a collective labor tripartite agreement with Uruguayan relevant unions; (iii) recognize the free trade zone status for the plant, with a 30-year broad tax exemption; (iv) authorize UPM to build a biomass power plant, and (v) acquire from UPM the energy excess in the sum of USD 70 million per year. Should the final agreement be executed and implemented as expected by Uruguay’s Administration, the project is scheduled to generate approximately 8,000 working positions during construction peak. The Uruguayan Government has already called for an international bid to award the contract for the construction and renovation of the above railroads.

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