🇺🇾 Tax Overview — Uruguay
Corporate tax, VAT/GST, and key tax information for businesses operating in Uruguay.
Tax Treatment by Structure
Simplified Joint Stock Company (SAS)
Uruguay operates a territorial tax system — IRAE (corporate income tax) at 25% applies only to Uruguayan-source income. Foreign-source income is exempt from IRAE. This makes Uruguay attractive for holding structures and companies with primarily international revenue. IVA (VAT) is 22% standard (10% reduced rate on certain goods). Dividends distributed from Uruguayan-source income are subject to IRPF at 7%. Withholding tax on dividends to non-residents is 7%. Free Trade Zone companies are exempt from all national taxes (including IRAE, IVA, and wealth tax) on activities conducted within the zone. IP Box regime allows 90% exemption on qualifying patent and software income.
This content is educational and does not constitute legal or tax advice. Always consult a qualified professional for your specific situation. Data last verified March 2026.