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Uruguay: Living There - Tax Issues

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Last Updated: Mar 21, 2007

Living There

Resident individuals of Uruguay are not liable for income tax other than the net worth tax until June 2007. Under the Tax Reform Project, effective as of 01 July 2007, imposes capital income tax and labor (earned) income tax. Capital income is taxed at a 12% rate while labor (earned) income is subject to progressive tax rates, from 0% up to 25%.

Net Worth Tax (Impuesto al Patrimonio -IAP)

The net worth tax is imposed at progressive rates. The prescribed tax-free amount (minimo no imponible or MNI) for 2005 is UYP1,560,000 (US$62,726). The tax-free amount is doubled for couples filing jointly.

The tax bands for the net wealth tax below are applicable to individuals and estates. For family units or couples filing jointly, the tax bands are doubled.


INCOME TAX
TAXABLE WEALTH, UYU (US$) MARGINAL TAX RATE
Up to 1,560,000 (US$62,726) 0.7%
1,560,000 - 3,120,000 (US$125,452) 1.1% on band over US$62,726
3,120,000 - 6,240,000 (US$250,905) 1.4% on band over US$125,452
6,240,000 - 9,360,000 (US$376,357) 1.9% on band over US$250,905
9,360,000 - 14,040,000 (US$564,536) 2.2% on band over US$376,357
14,040,000 - 21,840,000 (US$878,167) 2.7% on band over US$564,536
Over 21,840,000 (US$878,167) 3% on band over US$878,167
Source: Global Property Guide

 

Uruguay - more data and information

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