🇺🇾 Tax Overview — Uruguay

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.