Uruguay

Individual - Other taxes

Last reviewed - 30 June 2020

Social security contributions

The Uruguayan social security system is comprehensive, covering retirement pensions, health insurance, sick pay, and unemployment insurance. Social security contributions are compulsory, based on the salary earned, including bonuses and commissions, and are borne by the employer and the employee.

The employer contributes an amount equivalent to 12.625% and withholds 18.1% to 23.1% from the employee, as follows:

Contributions Employer contributions (%) Employee contributions (%)
Retirement (1) 7.5 15
Health insurance 5 3 to 8 (2)
Labour Restructuring Fund 0.1 0.1
Labour Credit Guarantee Fund 0.025 0
Total contributions 12.625 18.1 to 23.1

Notes

(1) Both employer and employee retirement contribution rates are applicable up to a monthly amount of UYU 188,411 until 31 December 2020 (the exceeding amount is exempt).

(2) There is no health insurance contribution for Corporate Directors. These rates are applicable to employees as follows:

    • 3% for remunerations not exceeding 2.5 BPC monthly (UYU 11,298).
    • 4.5% for remunerations exceeding 2.5 BPC monthly and employees with no spouse or concubine in charge and no dependent under-age children.
    • 5% for remunerations not exceeding 2.5 BPC and employees with spouse or concubine in charge (with or without children).
    • 6% for remunerations exceeding 2.5 BPC monthly and employees with no spouse or concubine in charge with dependent under-age children.
    • 6.5% for remunerations exceeding 2.5 BPC monthly and employees with spouse or concubine in charge with no dependent under-age children.
    • 8% for remunerations exceeding 2.5 BPC monthly and employees with a spouse or concubine in charge and one or more dependent under-age children.

Consumption taxes

Value-added tax (VAT)

Uruguayan VAT is levied at a general rate of 22% on the provision of services and on the circulation of goods within the limits of the Uruguayan territory. See the Other taxes section in the Corporate tax summary for more information.

Excise tax (IMESI)

In general, excise tax applies on the first transaction effected in the domestic market by manufacturers or importers of goods. Exports are not taxable.

Excise tax rates vary for each item, and they are generally fixed by the government within maximum parameters established by law.

See the Other taxes section in the Corporate tax summary for more information.

Net wealth tax (NWT)

NWT is not only levied on corporate taxpayers but also on the local net wealth of individuals (resident or not) at each civil year-end and at a progressive scale of rates that will depend on the residence condition of the individual. In this sense, while residents individuals will be subject to the NWT at a scale of rates from 0.3% to 0.6%, the scale of rates applicable to non-residents individuals are from 0.7% to 1.5%.

Different rules for assets valuation, liabilities, and deductions are applicable to this category of taxpayers. However, the territorial principle is applicable (whereby only assets located or economically used in Uruguay are taxed by NWT).

Furthermore, there is a threshold under which the local net wealth of the individual is considered exempt (currently amounts to UYU 4,491,000). This tax can be paid as a family unit, and, in such cases, the threshold is doubled.