Uruguay

Uruguay applies a territorial tax system (IRAE), taxing companies only on Uruguayan-source income at a standard rate of 25%. Companies must submit their CIT returns by the end of the fourth month following the fiscal year-end, with the final payment also due at that time. Monthly advance payments are required throughout the year, calculated based on the previous year's tax liability.

Uruguay's personal income tax (PIT) is imposed at rates of 36% for residents and 12% for non-residents. Residents are required to file their PIT returns between June and August, while non-residents must file in May. For residents, taxes on labor income are collected monthly through withholdings, while self-employed workers must make bimonthly advance payments. Non-residents primarily pay through monthly withholdings.

Uruguay applies withholding tax on various types of income. Dividends from IRAE-taxable income are subject to a 7% WHT for both residents and non-residents. Non-resident interest income is generally taxed at 12%, though rates of 7% may apply for longer-term foreign currency instruments. Royalties paid to non-residents are subject to 12% WHT. Income obtained by entities in low- or no-tax jurisdictions (LNTJs) is taxed at 25%. WHT is declared and paid monthly.

In Uruguay, capital gains for corporations are subject to corporate income tax at a rate of 25%. There is no separate capital gains tax for corporations. For individuals, capital gains are subject to personal income tax (IRPF) or non-resident income tax (IRNR), typically at a rate of 12%, although certain exceptions may apply.

Uruguay imposes a value-added tax (VAT) at a general rate of 22% on goods and services provided within the country. Certain items, such as food, medicines, hotel services, and health services, are subject to a reduced 10% VAT rate, while items like milk, books, and agricultural machinery are fully exempt. Exports are zero-rated for VAT, and credits for VAT paid on certain purchases can be reclaimed under specific conditions. Additionally, payments made with debit cards or electronic money may benefit from a reduced VAT rate of 20%.

Uruguay levies a net wealth tax (IPAT) at a rate of 1.5% on the net assets of legal entities. Entities domiciled in low- or no-tax jurisdictions face a higher rate of 3%. The tax is calculated on the difference between taxable assets and deductible liabilities. IPAT applies to both resident and non-resident entities holding assets in Uruguay.