Sign up for tax alert emails    GTNU homepage    Tax newsroom    Email document    Print document    Download document

November 22, 2023

Uruguayan Government regulates tax measures affecting foreign IT professionals

  • A new Executive Office Decree regulates an employment tax option provided to professionals of the information technology (IT) sector.
  • An employee's decision to decline the option is irrevocable.
  • Employers are responsible for monitoring and providing evidence of compliance when asked to do so by the Tax Authority or Social Security Bank.

The Executive Office issued Decree No. 360/023 on 14 November 2023, providing rules governing Law No. 20,191 as it applies to professionals in the information technology (IT) sector.

Law No. 20,191 gives IT professionals the option to pay the Non-Resident Income Tax (IRNR) for income obtained in Uruguayan territory under employment contracts. For more information, see EY Global Tax Alert, Uruguay enacts new initiative to attract IT professionals using tax incentives, dated 11 September 2023.

According to Decree 360/023:

  • The option must be presented in writing at the beginning of the employment relationship through a tax return from the worker to the employer. If the employee decides to renounce the option, that decision will be considered irrevocable and will apply from the year in which it is made. It must also be expressed in writing.
  • The Uruguayan employer entity is required to withhold nonresident income tax at the rate of 12% of the nominal value of the tax base salary and remit it to the tax administration in the month following the accreditation or payment of the income.
  • The employer is responsible for monitoring and providing evidence of compliance under the conditions specified in Law No. 20,191, when asked to do so by the Tax Authority or Social Security Bank, both at the beginning of the employment relationship and during the calendar year in which the employee benefits from the option.
  • If noncompliance is verified, the taxes owed plus fines and surcharges must be paid from the fiscal year in which noncompliance was detected.

The Decree No. 360/023 is pending of publication in the Official Gazette and will be effective from publication. It can be accessed here (only in Spanish).


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

Published by NTD's Tax Technical Knowledge Services group; Carolyn Wright, legal editor


The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.


Copyright © 2024, Ernst & Young LLP.


All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.


Any U.S. tax advice contained herein was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.


"EY" refers to the global organisation, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.


Privacy  |  Cookies  |  BCR  |  Legal  |  Global Code of Conduct Opt out of all email from EY Global Limited.


Cookie Settings

This site uses cookies to provide you with a personalized browsing experience and allows us to understand more about you. More information on the cookies we use can be found here. By clicking 'Yes, I accept' you agree and consent to our use of cookies. More information on what these cookies are and how we use them, including how you can manage them, is outlined in our Privacy Notice. Please note that your decision to decline the use of cookies is limited to this site only, and not in relation to other EY sites or Please refer to the privacy notice/policy on these sites for more information.

Yes, I accept         Find out more