Uruguay – Recent legislative developments

Uruguay published the following legal statutes:

1. Non-Resident Income Tax – Individual Income Tax.

Decree 343/2020, of December 21^st, 2020, replaces Decree No. 342/020, and which provides that below stated election must be made through the filing of an affidavit before the Tax Authorities.

Finally, Articles 6°Bis and 26 of Title 7 of Ordered Text 1996, with the new versions provided by articles 1° and 2° of Law No. 19,904 of 2020, allows individuals who acquire the Uruguayan Tax Residence as of the 2020 Tax Period, to choose between being tax under the Non-Resident Income Tax (IRNR) exclusively with respect to foreign movable assets for the tax period in which the tax residency change is verified – and for 10 subsequent periods – or under the Individual Income Tax (IRPF), for said yields, at a 7% rate.

• Low-Tax Jurisdictions.

Resolution No. 2440/2020, of December 28^th, 2020, sets forth that the following shall be considered low-tax countries, jurisdictions, and special regimes:

1) Angola

2) Antigua y Barbuda

3) Ascension

4) Brunei

5) Commonwealth de Dominica

6) Guam

7) Guyana

8) Honduras

9) Coconut Island (Keeling Island)

10) Navidad Island

11) Santa Elena Island

12) Norfolk Island

13) Pitcairn Island

14) Pacific Islands

15) Fiji Islands

16) Maldives Islands

17) Malvinas/Falkland Islands

18) Palau Islands

19) Solomon Islands

20) USA Virgin Islands

21) Jamaica

22) Jordan

23) Kiribati

24) Labuan

25) Liberia

26) Niue

27) French Polynesia

28) Puerto Rico

29) Tonga Kingdom

30) Yemen Republic

31) San Martin (Antigua, part of Dutch Antilles)

32) San Pedro and Miquelon

33) Oman Sultanate

34) Svalbard

35) Swaziland

36) Tokelau

37) Tristan of Acuña

38) Tuvalu

39) Yibuti (Djibouti)

It should be noticed that the abovementioned countries shall be excluded from said classification as of the moment in which the Financial Account related to Tax Matters Information Exchange is fully applicable and bilaterally activated.

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