Uruguay legal and accounting and tax considerations in 2024

1. Corporate income tax in Uruguay is levied at a standard rate of 25%. All legal entities must register with Direccion General Impositiva (DGI), the Uruguayan tax authority, and file annual returns within 4 months following the end of the fiscal year;
2. Capital gains derived from both resident and non-resident companies are subject to a corporate income tax rate of 25%;
3. A standard VAT rate of 22% applies to all commercial transactions. A reduced VAT rate of 10% or complete exemption is applicable to certain goods and services;
4. A 7% withholding tax is applicable on dividends paid to non-resident companies. The rate maybe reduced where a tax treaty applies;
5. Withholding tax on interests paid to non-resident companies applies at varying rates of 3%, 5% or 12% subject to type of currency or loan duration;
6. A 12% withholding tax is applicable on i) technical services fees ii) royalties paid to non-resident companies unless reduced under a tax treaty;
7. Branches of foreign legal entities are subject to a 7% withholding tax on their remittances abroad;
8. Employers in Uruguay are required to submit a monthly social security contribution of i) up to 23% of their employees’ gross monthly salaries and ii) 13% of the total monthly payroll to the Uruguay social security fund;
9. Other taxes in Uruguay include i) 1.5% capital duty levied on the total net worth of the company ii) 2% transfer tax on the transfer of real estate;
10. Tax losses in Uruguay can be carried forward for a period of up to 5 years, however a carryback is not permitted;
11. The Republic of Uruguay is signatory to 13 double tax treaties with different countries including Argentina, Germany, Spain, Switzerland, Mexico among others;
12. Healy Consultants will assist our Clients with i) documenting and implementing accounting procedures ii) implementing financial accounting software iii) preparing financial accounting records and iv) preparing forecasts, budgets and performing sensitivity analysis;
13. For an active trading company, these accounting and tax fees are an estimate of Healy Consultants fees to efficiently and effectively discharge your annual company accounting and tax obligations. Following receipt of a set of draft accounting numbers from your company, Healy Consultants will more accurately advise accounting and tax fees. For a dormant company, Healy Consultants fees are only US$950;
14. It is important our Clients’ are aware of their personal and corporate tax obligations in their country of residence and domicile; and they will fulfill those obligations annually. Let us know if you need Healy Consultants’ help to clarify your annual reporting obligations.