Uruguay's Executive Branch raises income limit to apply for simplified regime for Personal Income Tax

• Uruguay's Executive Branch has increased the income limit under which taxpayers may qualify for the simplified personal income tax regime for the 2025 tax period.
• The new limit will be effective for taxable events occurring on 31 December 2025 and later.

In Decree No. 26/025, Uruguay's Executive Branch has increased the income limit for taxpayers who want to apply for the simplified regime for personal income tax for the 2025 tax period. This new limit updates the one established in Decree No. 29/024 (see EY Global Tax Alert, Uruguay's Executive Branch raises income limit to apply for simplified regime for Personal Income Tax, dated 6 February 2024).

The new limit allows taxpayers who have salaries up to 65,400 Uruguayan pesos (UYU65,400) (approximately USD 1,505) per month and up to 784,800 Uruguayan pesos (UYU784,800) (approximately USD 18,050) to qualify for the simplified regime.

Decree No. 26/025 was published in the Official Gazette on 5 February 2025 and will be effective for taxable events occurring 31 December 2025 and later. It can be accessed here (only in Spanish).

For additional information concerning this Alert, please contact:

EY Uruguay, Montevideo

• Rodrigo Barrios 
• María Inés Eibe
• Piero de los Santos
• Lucia Giagnacovo 
• Luciano López

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

• Lucas Moreno
• Ana Mingramm
• Pablo Wejcman 
• Enrique Perez Grovas 

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 

Published by NTD’s Tax Technical Knowledge Services group; Carolyn Wright, legal editor

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