Tax on standard Uruguay companies
The Territoriality Rule
The companies are only taxed on income generated in Uruguay, and are not taxed on assets kept outside the country.
Detailed Rules
Some of the main taxes that are raise in Uruguay are:
- Tax on income raised, or on rights or patents used in Uruguay: at a rate of 30%.
- Tax on the estate of the taxpayer based in Uruguay, at a rate of 1.5% of the local estate value.
- Tax on the incorporation of the limited companies, with a tax of 0.75% over the subscribed capital of the SA. This tax is independent of any tax on real estate assets which may be put into the company, and is deductable from any tax on the company's balance sheet assets.
One point which must be understood is that, when the SA only has assets outside Uruguay, the company is not subject to any tax on income and not subject to any tax on the company's estate.
When the company has very specific trading objectives: as determined by law, for effects of paying company income tax, they can pay a rate of 0.9% over the difference between the income and expenditure.
Status Overseas
The Uruguay SA is not on any "black-list" of "jurisdictions of low or no tax". This is not the case with the SAFIs, which are in various "black-lists" such as in Argentina.