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27 January 2023

Uruguay’s Executive Branch increases income limit to apply for simplified regime for Personal Income Tax

  • Uruguay’s Executive Branch has increased the income limit for taxpayers to qualify for the simplified personal income tax regime for the 2023 tax period.

Taxpayers with a salary of up to UYU50,200 (approximately US$1,290) per month and UYU602,400 annually (approximately US$15,450), qualify to apply to the simplified regime with respect to personal income tax, according to Decree N°20/023, provided that they receive a salary derived from an economically dependent relationship.

The taxpayer’s personal income tax cannot be assessed as a family unit and the taxpayers cannot have generated taxable income as an independent contractor in order to be eligible to apply to this regime.

The Decree No 20/023 has not been published in the Official Gazette yet. It can be accessed here (only in Spanish).

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For additional information with respect to this Alert, please contact the following:

EY Uruguay, Montevideo

Martha Roca | martha.roca@uy.ey.com

María Inés Eibe | ines.eibe@uy.ey.com

Piero de los Santos | piero.de.los.santos@uy.ey.com

Lucia Giagnacovo | lucia.giagnacovo@uy.ey.com

Ernst & Young LLP (United States), Latin American Business Center, New York

Lucas Moreno | lucas.moreno1@ey.com

Ana Mingramm | ana.mingramm@ey.com

Pablo Wejcman | pablo.wejcman@ey.com

Enrique Perez Grovas | enrique.perezgrovas@ey.com

Ernst & Young LLP (United Kingdom), Latin American Business Center, London

Ernst & Young Tax Co., Latin American Business Center, Japan & Asia Pacific

Raul Moreno, Tokyo | raul.moreno@jp.ey.com

  • Luis Coronado, Singapore | luis.coronado@sg.ey.com

    Document ID: 2023-5105

     
     

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