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Uruguay

Taxes

If you want to incorporate in Uruguay, reading this will help you becoming knowlegeable on the specific tax laws and rates for a LLC (SRL) which is the most common company type in Uruguay.

Uruguay taxes corporate income on a territorial basis. This means that income accrued outside the country, from our research, and these things do change, is tax exempt. Certain technical and advertising services provided by a Uruguayan taxpayer abroad may be taxable. Income accrued within Uruguay is taxed at a headline corp. tax of 25%. This ranks Uruguay as 103rd overall in terms of CIT globally.

The valued added tax rate in Uruguay is 22.00%, which ranks Uruguay as 98th overall with regards to value added tax rate worldwide. In terms of other taxation, an employer will contribute 12.65% to the equivalent of a social security fund and an employee will contribute 23.13%. The overall complexity of the tax system is medium. This is measured by average time to comply with a country's labor tax requirements is as it is 114hours. Contributing to this is the number of yearly labor tax payments, which is 1 in UY.

Thin cap mandates are not in effect. This refers to any sort of restrictions on companies' debt-to-asset ratios. Dividends paid by a resident entity are subject to a withholding tax of 7%. Dividends received are tax exempt. Profits not distributed after three fiscal years may be treated as deemed distribution and subject to a withholding tax of 7%. Dividends received from a non-resident may be considered foreign source and therefore not taxable. Dividends are payments of earnings of the legal entity, passed by by the board, to a particular class of shareholders. Dividends can be either cash payments, shares of stock, or other property. Capital Gains are treated as business ordinary income and subject to income tax standard rates. A capital gains tax is levied on the profits that a corporation or natural person realizes when they sell sells a capital asset for a price that is higher than the purchase price.

The interest withholding tax rate is estimated at 12%. This means that the taxman expects relevant legal entities to automatically withhold 12% of interests remitted abroad. Certain interests may be taxed at a 7% rate. The dividends withholding tax rate is 7%. This means that the relevant tax authorities expects companies to automatically withhold 7% of dividends remitted abroad. The royalties withholding tax rate is 12%. This should be interpreted usually that the tax authorities expects companies to pay tax at 12% of royaltie paid abroad. Payments other than dividends to residents of jurisdictions considered tax haven may be subject to a 25% withholding tax. Withholding tax rates may vary under a tax treaty.

There is a capital duty of 1.5% on the net worth of the entity. There is a tax on individual net wealth in Uruguay. There are real property and transfer taxes. There are no known inheritance taxes in Uruguay. We are aware of commonly used R&D intitiatives that provide tax relief in this country.

The above is not tax or legal advice for your individual circumstances. Incorporations.io can help you to find to a lawyer in Uruguay who can answer all your questions. Contact us today. Click the free consultation button above.

Country details

Uruguay
UYU
Montevideo
South America
Spanish (Uruguay)
3,477,000

Tax treaties

Country Type Date Signed
Netherlands TIEA 2012-10-24
Hungary DTC  1988-10-25
Faroe Islands TIEA 2011-12-14
Chile TIEA 2014-09-12
United Kingdom TIEA 2013-10-14
Mexico DTC  2009-08-14
Ecuador DTC  2011-05-26
Singapore DTC  2015-01-15
Switzerland DTC  2010-10-18
India DTC  2011-09-08
Luxembourg DTC  2015-03-10
Denmark TIEA 2011-12-14
Australia TIEA 2012-12-10
Iceland TIEA 2011-12-14
United Arab Emirates DTC  2014-10-10
Germany DTC  2010-03-09
Finland DTC  2011-12-13
Canada TIEA 2013-02-05
Viet nam DTC  2013-12-09
Malta DTC  2011-03-11
Romania DTC  2012-09-14
Spain DTC  2009-10-09
Norway TIEA 2011-12-14
Argentina TIEA 2012-04-23
Portugal DTC  2009-11-30
Sweden TIEA 2011-12-14
Liechtenstein DTC  2010-10-18
Brazil TIEA 2012-10-23
Poland DTC  1991-08-02
Guernsey TIEA 2014-07-02
France TIEA 2010-01-28
Belgium DTC  2013-08-23
Greenland TIEA 2011-12-14
Korea, Republic of DTC  2011-11-29

Tax treaties Map

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Disclaimer

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