Income tax on economic activities (IRAE)
Posted: Sun Jan 19, 2025 5:12 am
Wealth tax for companies
Companies in Uruguay are subject to the wealth tax, which taxes the net value of their assets. Rates vary depending on the type of company. For corporations, it is 1.5%. For other types of companies, it is 1.2% .
Example: If your company has net assets israel phone number library valued at 10,000,000 Uruguayan pesos (256,400 dollars), you will have to pay 150,000 Uruguayan pesos (3,846 dollars) if it is a corporation.
Value added tax (VAT)
Companies offering goods or services in Uruguay must collect VAT. The standard rate is 22%. However, as we mentioned in the previous section, certain essential products and services are taxed at a reduced rate of 10% . End consumers bear this tax in the price.
Example: if your company invoices 1,000,000 Uruguayan pesos (25,640 dollars) per month in services taxed at 22%, you must remit 220,000 Uruguayan pesos (5,640 dollars) to the State.
The IRAE applies to companies on income generated within Uruguay. The general rate is 25% on net income.
Example: if your company makes net profits of 2,000,000 Uruguayan pesos (US$51,280), you will pay 500,000 Uruguayan pesos (US$12,820) in IRAE.
Companies in Uruguay are subject to the wealth tax, which taxes the net value of their assets. Rates vary depending on the type of company. For corporations, it is 1.5%. For other types of companies, it is 1.2% .
Example: If your company has net assets israel phone number library valued at 10,000,000 Uruguayan pesos (256,400 dollars), you will have to pay 150,000 Uruguayan pesos (3,846 dollars) if it is a corporation.
Value added tax (VAT)
Companies offering goods or services in Uruguay must collect VAT. The standard rate is 22%. However, as we mentioned in the previous section, certain essential products and services are taxed at a reduced rate of 10% . End consumers bear this tax in the price.
Example: if your company invoices 1,000,000 Uruguayan pesos (25,640 dollars) per month in services taxed at 22%, you must remit 220,000 Uruguayan pesos (5,640 dollars) to the State.
The IRAE applies to companies on income generated within Uruguay. The general rate is 25% on net income.
Example: if your company makes net profits of 2,000,000 Uruguayan pesos (US$51,280), you will pay 500,000 Uruguayan pesos (US$12,820) in IRAE.