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

March 20, 2023

Uruguayan Tax Office clarifies substance requirements applicable to the Corporate Income Tax’s source criteria

  • Uruguay’s Tax Office (Dirección General Impositiva – DGI) has issued a resolution aiming to clarify several aspects of the substance requirements applicable to Corporate Income Tax’s source criteria.

  • The resolution is effective as of 15 March 2023.

On 15 March 2023, the Uruguayan Tax Office issued a resolution that aims to clarify several aspects of the substance requirements applicable to the Corporate Income Tax’s (CIT’s) source criteria (for background, see EY Global Tax Alert, Uruguay’s Ministry of Economy and Finance issues decree regulating law that modifies Uruguayan CIT source criteria, dated 16 December 2022).

These are the main regulations introduced by Tax Office Resolution No.488/023:

  • Scope clarification regarding certain elements of income:

    • Yields of capital and capital gains from brands will be considered Uruguayan-source (i.e., regardless of whether economic substance requirements are met), as long as the CIT taxpayer forms part of a multinational group

    • The substance requirements would not apply for notional interests

    • Currency exchange results would not be subject to the economic substance test, unless originated on brands or any other asset liable to produce income under scope

  • “Necessary strategic decisions” definition: The decision making involved in the acquisition, holding and property transfer of the assets under scope

  • Holding and real estate company definition: An entity with at least 75% of its monthly average of assets directly related to real estate or holding company activities in the fiscal year

  • Annual affidavit requirement: An annual affidavit establishing compliance with the substance requirements should be filed within four months from the fiscal-year end; the resolution details the information requirements

  • Outsourcing documentation: When activities are outsourced to a third party, invoicing of the services should detail human resources affected, hours applied on the performances of the activities within Uruguayan territory and the facilities where the activities were developed (this requirement would apply as of 1 April 2023)

  • Documentation retention: All documents that support the information provided on the annual affidavits should be retained for the tax statute of limitations (generally 5 years, which could be extended to 10 years in case of tax fraud)

The Resolution was published on 15 March 2023 and enters into force as of that date.


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


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