January 3, 2023
Uruguay Government proposes tax incentives to attract IT professionals
Uruguay’s Executive Power has submitted a bill to Parliament proposing that IT professionals who migrate to Uruguay could elect to be subject to NRIT (nonresidents income tax) at a flat rate of 12%, instead of PIT (personal income tax) at progressive rates that range from 0% to 36%, under the following conditions:
This election is only applicable for work income arising from the abovementioned activities and labor agreements that are put in place no later than 28 February 2025.
The bill entered Parliament on 13 December 2022 and is currently under discussion in the representatives' chamber. The bill can be accessed here.
For additional information with respect to this Alert, please contact the following:
EY Uruguay, Montevideo
Ernst & Young LLP (United States), Latin American Business Center, New York
Ernst & Young LLP (United Kingdom), Latin American Business Center, London
Ernst & Young Tax Co., Latin American Business Center, Japan & Asia Pacific