Uruguay

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TAXES - ACCOUNTING

 

 

Corporate tax

Tax rate for resident companies

The profits tax rate is 30%.

   
Tax rate on long-term capital gains Capital gains are imposed at the rate of 30%.
   
System governing groups of companies and dividends paid by subsidiaries to their parent companies The residents are exempted from the tax on dividends, whereas a rate from 30% applies to non-residents.
   
Tax rate on branches Branches are taxed in the same way as the other companies. They are taxed on the IRIC (Impuesto a la Renta de Industria y Comercio) at the rate of 30%.




Income tax

Fiscal year The fiscal year begins on January 1-st and ends on December 31 of the same year.
   
Income tax rate In Uruguay, there is no system of levy on individuals incomes. However there is a social security contribution at progressive rates to 24,125%. A tax reform plan, including the introduction of a comprehensive personal income tax, is under consideration.
   
Tax deductions or other allowances No deductions because there is no income tax applying in Uruguay.



VAT rates

Standard rates 23%
   
Reduced rates A 14% reduced rates applies to basic foodstuffs and other essentials, accommodation services of hotels, fruit, flowers and horticultural products in their natural state, and road passenger transport.
Exemptions include the transfer and rental of immovable property, certain machinery, goods and raw materials for use in agriculture, qualifying banking operations, medical services and the import of crude oil.



Other important taxes


Name of tax
Rate
Bank assets, tax, farming tax, immovable property, import and export duties, net worth tax, personal services to public entities tax, special insurance businesses tax, specific consumption tax  
 


 

Accounting

Introduction
The accounting rules of Uruguayan are made in compliance with the accounting principles established. Law n16060 governs most of operations relative to the management of companies.


Obligations and publications
Companies must inform the government of their economic and financial situation by publishing documents controlled by chartered accountants : balance sheet, profit and loss account.

Certification and auditing
Companies have to apply the International Accounting Standard which have force of law. To control accounting and the accounting documents published by the companies, an external auditor is required.



Useful links
the tax regime report of the Investments promotion agency of Uruguay
- the General Direction of Taxes
- the Natio

Last modified in January 2007
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