The taxable period may be chosen by the company. However, certain sectors or industries have mandatory fiscal year closing dates.
CIT and NWT are self-assessed, and their tax returns are filed by the end of the fourth month following the date of the year-end.
Payment of tax
Income and capital taxes are paid monthly by way of advanced payments, which are calculated on the basis of the previous year’s tax. The difference between the advanced tax payments and the total annual tax calculated at fiscal year-end is paid by the end of the fourth month after the fiscal year-end.
Tax audit process
The taxpayer has the right to appeal an Administrative Act to the Tax Bureau and, simultaneously, to the Executive Branch in an administrative process. Both appeals must be filed jointly within ten days from the notification of the administrative act. If both appeals are tacitly (not expressly resolved within a period of 150 days) or expressly rejected, the taxpayer has the right to appeal to a special court through a judicial proceeding.
Statute of limitations
The statute of limitations in Uruguay is five years, which can be extended to ten years in the case of: (i) tax fraud, (ii) not complying with Tax Office registration, (iii) lack of communication of a taxable event, or (iv) not submitting a tax return (among other cases).
Topics of focus for tax authorities
There are several topics the tax authorities are currently focusing on.
One of the newest topics of interest for the tax authorities concerns ‘transfer pricing’ rules and their impact on multinational companies operating in Uruguay, as well as provision of digital services by non-residents.
During the last few years, important investments have been made by the government to automate processes and improve assistance to taxpayers.