Tax
A tax is a compulsory financial charge or some other type of levy imposed on a taxpayer (an individual or legal entity) by a governmental organization in order to fund government spending and various public expenditures (regional, local, or n ...
es in
Uruguay
Uruguay (; ), officially the Oriental Republic of Uruguay ( es, República Oriental del Uruguay), is a country in South America. It shares borders with Argentina to its west and southwest and Brazil to its north and northeast; while bordering ...
are collected by the General Taxation Directorate ( es,
Dirección General Impositiva, DGI).
A major tax reform bill came into force on 1 July 2007 with the number 18083.
Nevertheless, something important remained: Uruguay applies the source principle, with investments located and activities performed outside Uruguay remaining untouched.
Tax rates
*
Value added taxes
A value-added tax (VAT), known in some countries as a goods and services tax (GST), is a type of tax that is assessed incrementally. It is levied on the price of a product or service at each stage of production, distribution, or sale to the end ...
(VAT): basically 22%, but some goods (pharmaceutical, etc.) are taxed with 10%, and fruits and vegetables are not taxed. As of August 2014, the Financial Inclusion Law ( es, Ley de Inclusión Financiera) established a 4% tax deduction for sales with
debit cards and 2% for
credit card
A credit card is a payment card issued to users (cardholders) to enable the cardholder to pay a merchant for goods and services based on the cardholder's accrued debt (i.e., promise to the card issuer to pay them for the amounts plus the o ...
s.
*
Corporate tax: it used to be 30%, since 2007 it was lowered to 25%, but special dispositions can bring this to 33%.
*
Individual income tax: Since 2007
[ ] there is a progressive scale of taxation, with a non-taxable minimum. The
payroll tax
Payroll taxes are taxes imposed on employers or employees, and are usually calculated as a percentage of the salaries that employers pay their employees. By law, some payroll taxes are the responsibility of the employee and others fall on the em ...
is part of the same tax scheme.
*
Wealth tax
A wealth tax (also called a capital tax or equity tax) is a tax on an entity's holdings of assets. This includes the total value of personal assets, including cash, bank deposits, real estate, assets in insurance and pension plans, ownershi ...
: There is a non-taxable minimum which leaves the big majority of Uruguayans out of this duty. A progressive scale of taxation ranges from 0.7% to 2.75%.
Other taxes
* The Schools Tax ( es, Impuesto de Enseñanza Primaria) taxing urban rural estate was collected by the National Administration of Public Education and, since 2018, is collected direct by DGI.
* Regional administrations in the country can establish, collect and control certain taxes through their respective Departmental Councils. The most significant local taxes include the Real Estate Tax, Vehicle Registration Fee and the Food Analysis Tax.
See also
*
Economy of Uruguay
The economy of Uruguay features an export-oriented agricultural sector and a well-educated workforce, along with high levels of social spending. Tourism and banking are also important sectors; Uruguay acts as a regional hub for international f ...
*
Revenue stamps of Uruguay
References
External links
Dirección General Impositiva (DGI)
Economy of Uruguay
Uruguay
Uruguay (; ), officially the Oriental Republic of Uruguay ( es, República Oriental del Uruguay), is a country in South America. It shares borders with Argentina to its west and southwest and Brazil to its north and northeast; while bordering ...
{{Uruguay-gov-stub