Uruguay Corporate Income Tax

Corporate income tax (IRAE)

• IRAE overview — IRAE (Impuesto a las Rentas de las Actividades Economicas) taxes the net business income of resident entities and Uruguayan permanent establishments of non-residents, on a territorial-source basis. The standard rate is 25%, applied to accounting profit adjusted for tax rules.
• Standard IRAE rate — 25 % (Titulo 4 Texto Ordenado 1996 (IRAE))
• Tax base — Net Uruguay-source income from economic/business activities, being accounting profit adjusted for tax additions and deductions (Titulo 4 Texto Ordenado 1996 (IRAE))
• Territoriality — Only Uruguay-source business income is taxed; foreign-source income is generally outside IRAE (subject to specific anti-deferral/passive-income rules) (Titulo 4 Texto Ordenado 1996 (IRAE))
• Notional regime for certain trading companies — 3% of gross, giving an effective IRAE of about 0.75% % ((approx — confirm eligibility and current notional margin)) (Decreto reglamentario IRAE - regimen de trading)
• Small-business / micro alternatives — Small taxpayers may instead fall under simplified regimes such as Monotributo (BPS) or IRAE ficto (notional-income IRAE), depending on turnover thresholds ((approx — confirm current turnover thresholds)) (Titulo 4 Texto Ordenado 1996 (IRAE) y Ley de Monotributo)
• Withholding tax — dividends to non-residents — 7 % (Generally on dividends/profits distributed out of IRAE-taxed income (treaty relief may reduce this)) (Titulo 8 Texto Ordenado 1996 (IRNR))
• Withholding tax — interest to non-residents — 0% to 12% (12% general rate); 25% if recipient is in a low/no-tax jurisdiction % (depending on instrument, term and currency) (Titulo 8 Texto Ordenado 1996 (IRNR))
• Withholding tax — royalties to non-residents — 12% (25% if recipient is in a low/no-tax jurisdiction) % (treaty relief may reduce this) (Titulo 8 Texto Ordenado 1996 (IRNR))
• Low/no-tax-jurisdiction (LNTJ) premium rate — 25 % (IRNR on income obtained by entities resident/located in low-or-no-tax jurisdictions) (Titulo 8 Texto Ordenado 1996 (IRNR))
• Domestic minimum top-up tax (Pillar Two) — 15 % (qualified domestic minimum top-up tax (IMC) for in-scope large multinational groups (approx — confirm exact law number and effective period)) (Ley 20.341 (Impuesto Minimo Complementario) - Pilar 2 OCDE)
• IRAE filing & payment — Annual IRAE return and balance due after fiscal year-end (commonly within about 4 months), with monthly IRAE advance payments during the year; DGI sets exact dates by taxpayer group ((approx — DGI publishes exact due dates annually)) (Resoluciones DGI - calendario de vencimientos)