Taxpayers should continue to follow the progress of the treaties and determine whether they would benefit from any of the provisions once they enter into force.

Uruguay's Parliament recently approved an Exchange of Information Agreement in Tax Matters with Chile and a Treaty to Avoid Double Taxation with the United Arab Emirates. Additionally, Uruguay's Executive Power sent the Exchange of Information Agreement in Tax matters with the States of Guernsey to the Parliament for its approval.

Agreement with Chile

On May 20, 2016, Uruguay's Parliament approved (Law No. 19,391) the Exchange of Information Agreement in Tax matters with Chile.

According to Article 13 of the agreement, it will enter into force as of the date in which the countries inform each other that they have complied with the local legal requirements. The agreement will apply to tax periods beginning from the entry into force date.

Unlike the agreement in force between Uruguay and Argentina, this agreement does not have a double taxation avoidance clause.

Treaty with United Arab Emirates

Uruguay's Parliament approved (Law No. 19,393), on May 20, 2016, the Treaty to Avoid Double Taxation with the United Arab Emirates.

According to Article 28 of the treaty, it will enter into force 15 days after the date in which the countries inform each other that they have complied with the local legal requirements. The treaty will apply to taxes withheld, amounts paid or credited, and tax periods beginning as of January 1st of the year following the entry into force.

The information exchange clause included in the Article 25 will apply to taxable events that occur after the treaty's entry in force date or periods beginning after that date.

Agreement with States of Guernsey

On May 16, 2016, Uruguay's Executive Power sent the Exchange of Information Agreement in Tax Matters with the States of Guernsey, which was signed on July 2, 2014, to Parliament for its approval. Uruguay's Executive Power previously sent the agreement to the Parliament for its approval on October 14, 2014, but had to send it again because the Parliament representatives changed.

According to Article 13 of the agreement, it will enter into force 30 days after the countries inform each other that they have complied with the local legal requirements for criminal tax matters. The agreement will apply to tax periods beginning or events that occur from the entry into force date.

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