Uruguay - Other taxes and levies

Uruguay - Other taxes and levies

Taxation of international executives

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Social security tax

Are there social security/social insurance taxes1 in Uruguay? If so, what are the rates for employers and employees?

Employer and employee

Type of insurance Paid by employer  Paid by employee Total
Pension contributions2 7.500% 15.000% 22.500%
Labor reconversion fund 0.125% 0.125% 0.250%
Health insurance 5.000%

3.000%,

4.500%,

6.000%, 6.500%

or 8.000%

8.000%,

9.500%,

10.000%,

11.000%,

11.500%

or 13.000%

Total 12.625%

18.125%,

19.625%,

20.125%,

21.125%,

21.625%

or 23.125%

30.750%,

32.250%,

32.750%,

33.750%,

34.250%

or35.750%

There is a social security contribution system, which covers all employees. All expatriates working in Uruguay temporarily or permanently, even for periods of less than one year, are subject to the social security system. However, where social security contributions are being paid in their country of origin and Uruguay has entered into a social security treaty with that country, the expatriate is exempt.

In calculating the amount of compensation subject to social security contributions all remunerative items that the employee receives from the employer must be included. Nevertheless, certain items like food and health assistance and life and accident insurances have been declared exempt from employee´s social security charges, if their aggregate amount does not exceed 20 percent of worker’s taxable remuneration.

Other income items, which may not be subject to tax, include work clothes.

Pension fund contributions

Pension fund contributions are calculated as a percentage of salary and, under the general regime, this percentage will amount to 22.5 percent, of which 7.5 percent is borne by the employer and 15 percent is withheld from the employee. It is worth noting that these contributions only apply over the portion of salaries that does not exceed USD4,300 monthly, approximately.

Accidents at work are separately insured at the sole expense of the employer.

Other contributions to the social security system are as follows.

Labor reconversion fund

This amounts to 0.25 percent (0.125 percent borne by the employer and 0.125 percent by the employee).

Health insurance

This amounts to 8 percent, 9.5 percent, 11 percent, 11.5 percent or 13 percent (5 percent borne by the employer and 3 percent, 4.5 percent, 5 percent, 6 percent, 6.5 percent or 8 percent withheld from the employee (depending on his/her salary and on the number of dependent children).

Municipal taxes

Expatriates may be subject to certain minor municipal taxes, which are typically not very significant. The main ones would be the urban land tax and vehicle taxes.

Net worth tax

Expatriates may be subject to the net worth tax on assets located in Uruguay. The tax is levied on net worth at 31 December.

This tax is levied annually on net worth (the difference between fiscal assets and fiscal liabilities) of individuals, family groups, numbered bank accounts, domestic corporations, and foreign corporations. However, in the case of individuals and family groups, only the annual average of monthly outstanding balances in debts with local banks is deductible as a qualifying liability.

Assets and liabilities should be valued according to the regulations. Foreign assets are excluded from taxation but liabilities must be imputed first to the foreign assets, and only the balance is deducted from Uruguayan assets.

Bearer shares and government securities are tax-exempt. This exemption may be ineffective, as the values of exempted assets must be deducted from qualifying liabilities.

Individuals and family groups may deduct a non-taxable minimum3 (at the current exchange rates, approximately USD122,000 per individual and USD244,000 per family group). The tax is imposed at progressive rates ranging from 0.7 percent to 2.75 percent.4

Gift, wealth, estate, and/or inheritance tax

Are there any gift, wealth, estate, and/or inheritance taxes in Uruguay?

No.

Real estate tax

Are there real estate taxes in Uruguay? 

Some municipal taxes are applied on the ownership of real estate, as well as a national tax called Impuesto de Enseñanza Primaria, but as a general rule their amount is not relevant.

It is also worth noting that a tax is levied on local sales of real estate at the rate of 4 percent (2 percent paid by the buyer and 2 percent by the seller), applicable one the cadastral value of the property.

Sales/VAT tax

Are there sales and/or value-added taxes in Uruguay?

Value-added tax is applied at the basic rate of 22 percent.

Unemployment tax

Are there unemployment taxes in Uruguay?

No.

Other taxes

Are there additional taxes in Uruguay that may be relevant to the general assignee? For example, customs tax, excise tax, stamp tax, and so on.

Excise tax applies on certain goods.

Customs duties apply on the importation of goods to Uruguay.

Footnotes

1Uruguayan Decree 399/95 of 11.3.95, art. 59.

2Pension contributions only apply over the portion of salaries that does not exceed USD4,300.

3As per Uruguayan Decree 464/011 of 27.12.2011: UYU2,383,000 and twice that amount for family groups.

4Uruguayan Tax Compilation, Title 14, art. 45.

© 2016 KPMG Sociedad Civil, a Uruguay limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

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