Global Tax Alert (News from Americas Tax Center) | 7 November 2013

Uruguay repeals capital gains tax exemption on transfer of bearer shares

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Article 364 of Law No. 19,149, dated 24 October 2013, eliminates the capital gains tax exemption on the transfer of bearer shares issued by Uruguayan companies. At present, this exemption applies only if the transfer is performed by nonresidents or Uruguayan tax resident individuals.

From 1 January 2014, the transfer of bearer shares by nonresidents or Uruguayan tax resident individuals will be subject to a capital gains tax rate of 12% on a deemed profit of 20% of their sale price (which should correspond to the fair market value).

The elimination of this exemption is not surprising, considering the creation in 2012 of the bearer shares owners’ registry managed by the Central Bank of Uruguay.

For additional information with respect to this Alert, please contact the following:

Ernst & Young (Uruguay), Montevideo
  • Martha Roca
    +598 2902 3147
    martha.roca@uy.ey.com
  • Rodrigo Barrios
    +598 2902 3147
    rodrigo.barrios@uy.ey.com

EYG no. CM3944