Uruguay´s Administration has just unveiled an international call for the sale of properties to be dedicated to the construction and operation of a luxury hotel in the city of Carmelo. The hotel would include a Casino.
The project is to be developed in an area of 10,000 m2, with an estimated market value of USD 2,1…
Law No. 20,191, ("the Law") presents a compelling option for Information Technology ("IT") professionals and technicians choosing to offer their services from within Uruguay.
They have the choice of either:
(i) Paying a Non-Resident Income Tax ("IRNR") at a fixed rate of 12% based on their taxable monthly income; and
(ii) Opting out of social security contributions, which,…
In view of Brazil’s recently enacted tax reform over foreign-sourced income, this Newsletter summarizes current status of Uruguayan tax laws vis-à-vis foreign-sourced income.
General taxation
Individuals: 11-year tax holiday for foreign-sourced financial income (or a reduced rate of 7%, instead of the normal rate of 12%).
Assets based abroad: untaxed.
No inheritence taxes.
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Uruguay has recently signed an agreement (the “Agreement”) to facilitate the exchange of such information. This is to the extent that the information may be foreseeably relevant for the assessment and collection of taxes, as well as for the investigation and prosecution of tax cases.
In principle, the Agreement would not allow the exchange of tax…
Earlier this week, the Brazilian Official Gazette published the Double Taxation Treaty entered into between Brazil and Uruguay in 2019 and enacted by the Brazilian Congress earlier this year (“the Treaty”).
Main provisions of the Treaty are summarized below:
(i) Dividends: Can be subject to a withholding tax at the source - i.e., where the company distributing…