Uruguay Corporate Taxation
The Uruguay Corporate Taxation incorporation shall daily keep its corporate books, viz a viz:
- Daily Book
- Inventory Book
- Book of Shareholders Meetings
- Book of Board of Directors’s Session
- Book of Attendance to Meetings
- Book of Registered Shares (in case shares are registered).
Uruguay Corporate Taxation – Fiscal Regime
Each incorporation, at the end of the fiscal year, shall prepare the corresponding balance-sheet and make the affidavits to the effects of being submitted before the General Taxation Office.
Furthermore, it shall comply with payment of tax monthly advances as well as payment the necessary balances upon the end of the fiscal year.
According to our fiscal regimen, incorporations pay taxes according to the assets and revenues obtained within the Uruguay territory.
Certain activities, even if they are performed out of the country, for instance Trading, the fiscal authorities consider that said activity was coordinated from Uruguay. Consequently, it shall pay a fixed amount, whose rates appear hereunder.
Uruguay Corporate Taxation – Taxes:
TAX ON INCORPORATIONS CONTROL (I.C.O.S.A.) is compulsory for all companies of this nature for its sole existence.
This tax is annually fixed by the State and for the year 2014 it is set at US$ 55 per month.
In the case of the incorporations created in the year 2013 and 2014, this tax is paid during the first year of the incorporation, in a diverse way: on the 8th month of its incorporation, it pays 80 % in taxes and on the following 4th month the remaining 20 %, taking as a reference the annual tax.
TAX ON INCOME FROM ECONOMIC ACTIVITIES (I.R.A.E.) I.R.A.E. levies 25 % of the net fiscal income (gross income minus expenses accrued during the fiscal year which were necessary to obtain and keep the levied income, which are duly documented).
Once the incorporation is registered and starts billing, it shall start paying minimum I.R.A.E. tax which amount to US$ 150 to date and as of the first end of the fiscal year it shall pay taxes according to the activity carried out month after month, however, it shall never pay fewer taxes than the aforementioned amount.
In certain operations carried out of Uruguay, the tax rate of 25 % shall not be paid but 25 % of 3% of the income obtained abroad. In this case, the aforementioned minimum is kept.
VALUE ADDED TAX (VAT) – This tax levies certain activities expressly stated in the national taxation regulations:
- internal circulation of goods,
- rendering of services within the national territory
- introduction of goods into the country
- improvements on real estate
Therefore, every time an invoice is issued, this tax shall be monthly paid. It shall be settled starting from the total of the billed taxes deducting the tax corresponding to the purchase of goods and services acquired by the tax-payer, which are duly documented.
With reference to the credit generated by the VAT expense, we hereby confirm that it can only be submitted for collection before D.G.I. and more specifically, for payment of said tax.
TAX ON REAL ESTATE – (I.P.) – levies 1.5 % per year on the assets owned by the incorporation that are within the national territory.
Upon each end of the fiscal year, all the assets of the incorporation shall be taken, viz a viz, vehicles, real estate and balance up to the date of bank account closing. Payment of said tax shall be made through monthly advances, calculated at the end of each fiscal year.
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