Uruguay

Employment expenses

Social security contributions and a notional amount corresponding to education, feeding, health, and housing of dependent under-age children are deductible, under certain conditions, from employee gross income when applying a flat rate of either 14% or 8%, depending on the taxpayer’s level of income. Those taxpayers with a monthly income lower than 15 BPC (USD 2,300) will be able to deduct 14% of the deductions, while the individuals whose income is greater than 15 BPC will only be able to deduct an 8% rate of the total deductions.

Self-employment deductions

Self-employed individuals can reduce business income by 30% for expenses calculated on a notional basis.

Capital investments deductions

Bad debts (under certain conditions), intermediary commissions, renewal and subscription fees, real estate tax, and contributions are deductible from real estate income originated in real estate leases.

Other deductions

Other deductions may be available depending on the type of income.