Uruguay

Individual - Tax administration

Last reviewed - 30 June 2020

Tax returns

Monthly tax returns are required to be filed by employers with the tax authorities, exposing the employee income withheld from one’s monthly payroll compensation. Otherwise, each taxpayer is required to file an annual tax return for individuals.

As regards due dates, residents must file the tax return between June and August, depending on their ID number; while non-residents must file it in May.

Payment of tax

Advance and withholding payments are assessable on individuals on a calendar-monthly basis stated by the tax authority.

Self-employed workers must register with the tax authorities and are required to make advance payments on account of their income tax liability for the current year. In cases where self-employed income derived from rendering of services will be higher than approximately UYU 40,000, certain previously defined taxpayers must withhold at a rate of 7% on gross income.

There is also income tax withholding from salaries. Employers are required to withhold at the appropriate personal rate applied to net taxable remuneration of each employee.

Definitive personal income tax for residents are made in instalments and the first payment is due towards the end of August. In case of non-residents, final payment is in May.