Uruguay’s Executive Power presents accountability bill for 2021 to Parliament

Local contact

EY Global

18 Jul 2022
Subject Tax Alert
Categories Corporate Tax
Jurisdictions Uruguay
  • The bill would reduce tax rates on certain interest income and exempt interest income from nonresident income tax in certain circumstances.

  • Taxpayers should analyze their operations to determine the effect, if any, the bill might have on their business.

On 30 June 2022, Uruguay’s Executive Power presented to the Parliament the national accountability bill for 2021. The proposed tax measures would be effective 1 January 2023.

For individual taxpayers, the bill would reduce the tax rates on interest income derived from deposits, debt securities and other capital income. The new tax rates would vary from 0.5% to 12%, depending on the type of transaction, the currency and the terms granted.

Regarding the nonresident income tax, the bill would exempt interest income from debt securities and financial trusts issued by a corporation taxpayer from nonresident income tax if more than 90% of the corporation’s assets generate non-taxable income.

The bill also would establish that debts owed to the National Agency of Development may be deducted from the net worth tax calculation. Additionally, the bill would modify the calculation of the net worth tax on agricultural activities by excluding the surface occupied by protected natural forests from the computation.

The bill would increase the cap on annual deductions for special donations made to certain institutions from UYU533,439,871 (approx. US$13,306,000) to UYU550,000,000 (approx. US$13,750,000).


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

EY Uruguay, Montevideo
  • Martha Roca

  • María Inés Eibe

Ernst & Young LLP (United States), Latin American Business Center, New York
  • Lucas Moreno

  • Ana Mingramm

  • Pablo Wejcman

  • Enrique Perez Grovas

Ernst & Young Abogados, Latin America Business Center, Madrid
  • Jaime Vargas

Ernst & Young LLP (United Kingdom), Latin American Business Center, London
  • Lourdes Libreros

Ernst & Young Tax Co., Latin American Business Center, Japan & Asia Pacific
  • Raul Moreno, Tokyo

  • Luis Coronado, Singapore


For a full listing of contacts and email addresses, please click on the Tax News Update: Global Edition (GTNU) version of this Alert.