{"id":22267,"date":"2024-07-24T22:11:15","date_gmt":"2024-07-24T22:11:15","guid":{"rendered":"https:\/\/viviruruguay.com\/memo-trading-regime-of-sociedad-uruguaya\/"},"modified":"2024-07-24T22:11:15","modified_gmt":"2024-07-24T22:11:15","slug":"memo-trading-regime-of-sociedad-uruguaya","status":"publish","type":"post","link":"https:\/\/viviruruguay.com\/en\/memo-trading-regime-of-sociedad-uruguaya\/","title":{"rendered":"Memo trading regime of Sociedad Uruguaya"},"content":{"rendered":"<h2>Main Taxes<\/h2>\n<p>  Sole Proprietorship Companies (SAU) in Uruguay are subject to the following taxes:  <\/p>\n<ul>\n<li>Income Tax on Economic Activities (IRAE): Rate of 25%.<\/li>\n<li>Wealth Tax (IPAT): Rate of 1.5%.<\/li>\n<li>Value Added Tax (VAT): Basic rate of 22%.<\/li>\n<li>Corporation Control Tax (ICOSA).<\/li>\n<\/ul>\n<h2>Principle of Territoriality<\/h2>\n<p>  The Uruguayan tax system is based on the &#8220;Principle of Territoriality&#8221;.<br \/>\nThis means that the aforementioned taxes do not apply to income generated, activities carried out or assets located abroad.<br \/>\nFor example, if a UAS is engaged in:    <\/p>\n<ul>\n<li>Make investments or deposits in financial institutions abroad.<\/li>\n<li>Owning shares in foreign companies (holding activity).<\/li>\n<li>Have properties located outside the country.<\/li>\n<\/ul>\n<p>  In these cases, the income will not be subject to the IRAE, the assets will not be computed for the IPAT and there will be no activities taxed by VAT.<br \/>\nThe only tax that the SAU will pay in Uruguay will be the ICOSA, which amounts to approximately USD 720 per year.   <a class=\"maxbutton-1 maxbutton maxbutton-contacto\" target=\"_blank\" rel=\"nofollow noopener\" href=\"https:\/\/wa.link\/7nkfn8\"><span class='mb-text'>Cont\u00e1ctanos para m\u00e1s informaci\u00f3n<\/span><\/a><\/p>\n<h2>Trading Regime<\/h2>\n<h3>Income Tax:<\/h3>\n<p>  When a UAA carries out international trading (buying and selling goods or services abroad without them transiting through Uruguay), a part of the income generated is considered to be subject to taxes in Uruguay.<br \/>\nThe General Tax Directorate allows this income to be determined by applying a 3% rate on the difference between the purchase and sale price in Uruguayan pesos, without deduction of other costs.<br \/>\nA rate of 25% is applied to this income, resulting in an effective taxation of 0.75% of the profit generated.    <\/p>\n<h3>Dividend Tax:<\/h3>\n<p>  Dividends generated by Uruguayan-source income are subject to a rate of 7%.<br \/>\nApplying this rate to Uruguayan source income (3%), a withholding of 0.21% is generated.<br \/>\nAdding the IRAE and the dividend tax, the total taxation will be approximately 0.96% on the profit generated.    <\/p>\n<h3>Wealth Tax:<\/h3>\n<p>  SAUs pay the IPAT at a rate of 1.5% on assets located in Uruguay, being able to deduct commercial or bank debts with domestic financial institutions.<br \/>\nIn the case of international trading, export credits and offshore bank accounts are exempt.<br \/>\nThere is no obligation to withhold the IPAT on unpaid balances to persons abroad if the debts come from imports, trading operations, loans or deposits in foreign currency.    <\/p>\n<h3>Other Taxes:<\/h3>\n<p>  SAUs also pay ICOSA (approximately USD 720 per year), deductible from IPAT if applicable.<br \/>\nInternational trading operations are not taxed with VAT.<br \/>\nIf more than 90% of the assets of the SAU are outside the country, the interest on loans received from abroad is not subject to the Non-Resident Income Tax (IRNR).<br \/>\nIf the income taxed by IRAE does not exceed 10% of the total, advisory services hired from abroad are subject to an effective withholding of IRNR of 0.6%.<br \/>\nOtherwise, the withholding is 12%.      <\/p>\n<h2>Conclusion<\/h2>\n<p>  SAUs in Uruguay are an attractive option for channeling international trading operations due to:  <\/p>\n<ul>\n<li>Their domicile in a jurisdiction not considered a tax haven.<\/li>\n<li>Subject to the general tax regime with an IRAE rate of 25%.<\/li>\n<li>Effective marginal taxation of 0.96% on the income generated in each operation.<\/li>\n<\/ul>\n<a class=\"maxbutton-1 maxbutton maxbutton-contacto\" target=\"_blank\" rel=\"nofollow noopener\" href=\"https:\/\/wa.link\/7nkfn8\"><span class='mb-text'>Cont\u00e1ctanos para m\u00e1s informaci\u00f3n<\/span><\/a>\n","protected":false},"excerpt":{"rendered":"<p>Main Taxes Sole Proprietorship Companies (SAU) in Uruguay are subject to the following taxes: Income Tax on Economic Activities (IRAE): Rate of 25%. Wealth Tax (IPAT): Rate of 1.5%. Value Added Tax (VAT): Basic rate of 22%. Corporation Control Tax (ICOSA). Principle of Territoriality The Uruguayan tax system is based on the &#8220;Principle of Territoriality&#8221;. [&hellip;]<\/p>\n","protected":false},"author":14,"featured_media":22264,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[295],"tags":[],"class_list":["post-22267","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-company-in-uruguay"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Memo trading regime of Sociedad Uruguaya - Vivir en Uruguay<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/viviruruguay.com\/en\/memo-trading-regime-of-sociedad-uruguaya\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Memo trading regime of Sociedad Uruguaya - Vivir en Uruguay\" \/>\n<meta property=\"og:description\" content=\"Main Taxes Sole Proprietorship Companies (SAU) in Uruguay are subject to the following taxes: Income Tax on Economic Activities (IRAE): Rate of 25%. 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