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 provi…