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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.
