F.A.Q.
No.
No.
Yes.
Yes.
Six months and four years, respectively.
Yes.
Yes.
Entry of goods into the free zones and exit of goods abroad -- not including the Uruguayan territory -- are tax exempted. Free zone operators whose Uruguayan personnel represents at least 75% of the total payroll, are exempted from any national taxes for their activities in the zones.
Corporations (Sociedad Anónima), Limited Liability Partnerships (Sociedad de Responsabilidad Limitada), Branches of foreign companies (Sucursales) and One-Man Companies (Empresas Unipersonales).
Yes.
Yes
One.
Two.
Yes.
(i) criminal liability: directors are held liable only with respect to their personal involvement on any given matter. Under the laws of Uruguay in principle there is no criminal strict liability; (ii) commercial liability: directors are held liable to the extent they do not act in accordance with the standard of “a good businessman”; (iii) tax liability: directors are held liable to the extent they fail to act with due diligence in the performance of their tax assignments; safe for corporate income tax and agrarian income tax, where tax liability is strict, i.e., directors are held liable regardless of their wrongful intention or negligence.
Not less than three or four weeks. Due to such reason, the customary practice is the acquisition of a shelf virgin corporation with no prior activity, already established and ready to operate immediately.
No, external auditing is only required for certain regulated industries, such as banks and insurance companies. External auditing is also required for those companies specifically designated by the Tax Office as “large tax payers” and for those companies designated by the Central Bank as “large bank debtors”.
No, except for certain regulated industries (banks, etc.). Publication of financial statements is also mandatory for any corporate entity with an annual income of not less than US$ 1.150.000 or with assets of not less than US$ 350.000 (these figures are subject to changes according to the inflation and currency devaluation indexes).
Yes.
In order to be enforceable in Uruguay, foreign judgments must: (i) meet the external formalities required by the country of origin (for the decision to be considered a “judgment”); (ii) be legalized according to Uruguayan legislation; (iii) be translated in case it is necessary; (iv) be final or res judicata in the country of origin (i.e., not subject to further recourse or appeal); (v) be issued by a competent judge; (vi) not infringe Uruguay’s public order.
Yes.
Same for foreign judgments.
Approximately two years.
No. Uruguayan Law is of Civil Code tradition, and therefore courts may freely decide each case according to their own understanding of the application of the statute to the particular factual background.
Yes. Judicial conciliation/mediation is mandatory before the commencement of civil disputes, and administrative mediation before the Ministry of Labor is mandatory before the commencement of any labor dispute. Also there are several Mediation Centers located all around the country.
Yes.
Yes.
No. All the evidence must be attached to the complaint and the response. Evidence not in power of the parties must be addressed in the pleadings, and the judge may order its production if he/she understands that it is of probative value for the purposes of the trial.
In general terms the answer is Yes. In fact, any judicial decision may be appealed and, under certain circumstances, writ or certiorari is granted before the Uruguayan Supreme Court of Justice.
Yes. Any act performed or issued by the Executive Branch may be appealed before the Administrative High Court (TCA or “Tribunal de lo Contencioso Administrativo”), which does not belong to the Judiciary Branch.
Yes. To work for six (6) months or less, he/she must obtain a work permit. To work more than six (6) months, the person should obtain a temporary or permanent visa.
Petition for a permanent visa must be requested before the National Direction of Migrations, and must contain:
(a) an explanation of the reasons for desiring to live in Uruguay;
(b) xerox copies of the document that evidences entrance to the country;
(c) two passport-size pictures;
(d) justification of contemplated income (e.g. working position and expected salary);
(e) Health Certificate issued by the Ministry of Public Health or private entities authorized by the same;
(f) Criminal records from the person’s national country and/or the country in which the person has lived for the last five years;
(g) Marriage certificate (if applicable).
Yes. For commercial activities, the limit is eight (8) hours a day, or 44 hours a week (in case the daily schedule is otherwise distributed). For industrial activities, the limit is eight (8) hours a day, or 48 hours a week (in case the daily schedule is otherwise distributed).
Yes. Every working day must be interrupted for an “intermediary rest”. In industrial activities, no worker may work more than five (5) consecutive hours. In commercial activities, time to rest must be given after the fourth hour of work.
Yes, it does. Minimum salary is fixed periodically by the Executive Branch, and applies to all workers, irrespective of their profession or position.
Yes. As a general rule, the right to retirement is granted to people who: (i) are at least 60 years, and (ii) have worked and paid taxes to the Social Security System for at least 35 years.
Yes. The Uruguayan Social Security System is financed both by taxes and trust funds. Taxes assessed by the Social Security System are paid by both employers and employees. Investment in Trust funds are optional for those who earn high salaries.
Workers are entitled to:
(a) an “Annual complementary salary” or “Thirteen salary”;
(b) Annual Vacations, of 20 days per year (and one extra day for every five years of work);
(c) Vacations Payment, aimed at providing the worker appropriate funding to finance annual vacations;
(d) Overtime Payment, which compensates the work performed beyond the legal limits of working journal.
Yes, as long as the employer pays the appropriate severance payment, except for dismissal of labor unions’ members if the dismissal is motivated by discriminatory reasons based on their belonging to the union. In that case, dismissal is void, and the worker has the right to be relocated in his position.
Yes. As a general rule, compensation for dismissal under Uruguayan Law is of one salary for each year of work (or fraction of the same). The maximum number of years compensated is six (6); therefore, maximum severance payment is six salaries.
Workers have a one (1) year term -- counted as from the end of employment -- to file a lawsuit. Also, workers have a five (5) year term to claim for any labor rights or benefits, counted as from the date of their accrual.
Yes. Under Uruguayan Law no person may be presumed guilty. On the contrary, defendants are presumed innocent, until the State proves to the contrary.
Yes, although they are only liable for their personal actions and involvement in fraudulent operations. There is no strict criminal liability.
Yes, although some crimes can be subject to economic penalties.
Yes.
Yes.| It is only subject to limitation by judicial order, in alimony and criminal matters.
Yes.
Yes. Uruguay is a rationalized parliamentary system, in which the President is both head of Government and head of State, and his permanency in office, as well as that of the Ministers appointed by the President, depends upon parliamentary support.
No. The Constitution provides that any religion may be freely practiced in Uruguay, and that the Uruguayan State does not hold any particular official religion. Accordingly, there are no religious requirements for government positions.
Yes. The Constitution provides that no person may be punished without due legal process.
Yes. The Constitution provides that no person may be deprived from the right to physical liberty for more than 24 hours without a hearing conducted by a Magistrate.
Yes. The Constitution provides that the Uruguayan State is subject to the most rigorous civil liability arising from any damage caused to particulars in the performance of its public services.
No. The Constitution forbids its application expressly.
Yes. There are no prior controls to press releases or any type of expression of ideas. The only limit is defamation, that may only be alleged by individuals after the communication has been published.
Yes.
No.
Yes. The Constitution provides that people may freely choose and work in any industry, business practice, art, science or profession.
Yes. The National Environmental Agency (DINAMA) -- within the scope of the Ministry of Housing, Territory and Environment -- is in charge of the Uruguayan environmental policy.
Yes. Statutory provisions set forth the basic principles for the registration, usage, storage, etc. regarding the treatment of personal data aimed at supplying commercial reports.
The Supreme Court of Justice does, on an exclusive basis. Our constitutionality control is limited to the applicability of the Act to the particular case, and no legislative act may be annulled except by another legislative act.
Branches of foreign corporations are considered “permanent establishments”. For tax purposes they are considered to be separate and distinct legal entities from their home office for purposes of determining the tax. They are subject to the same laws and rules applicable to Uruguayan corporations for assessing taxable profits. Consequently, they must keep separate books and records and prepare tax returns reflecting the results of their activities in Uruguay on the basis of an arm's length relationship with the home office. Should any of the transactions with the home office not meet arm's length requirements, adjustments should be made.
Most relevant Uruguayan taxes are Corporate Income Tax, Personal Income Tax, Net Equity Tax, Value Added Tax, Corporations Control Tax.
No. As a general rule, Uruguay does not tax activities performed abroad, assets located abroad, nor income generated abroad.
25%.
Yes. In principle, all reasonably necessary expenses incurred to obtain taxable income are deductible (interest, salaries, etc.). Expenses incurred abroad are also deductible, to the extent they are absolutely necessary to obtain and maintain taxable income. Losses incurred during the fiscal year may be carried forward and deducted from taxable income obtained during the following three taxable years.
The net equity tax ("capital tax" or "impuesto al patrimonio") is assessed at the following rates: (i) individuals: from 0,70% to 2,75%, (ii) securities, debentures, etc.: 3,5%, (iii) banking institutions: 2,8%, and (iv) other entities: 1,5%.
Only those located in Uruguayan territory. Assets located abroad are not subject to taxation in general.
Companies may only deduct a few liabilities, including debts with local financial institutions subject to the tax on bank assets ("impuesto a los activos bancarios"), debts.