If the bill is enacted, the Convention will allow Uruguay to exchange tax information with other parties to the Convention.

On August 1, 2016, Uruguay's Executive Power proposed a bill to the General Assembly that would approve the Convention on Mutual Administrative Assistance in Tax Matters. Uruguay signed the Convention in Paris, France on June 1, 2016, making certain declarations and reservations.

The Convention allows for administrative cooperation to fight tax evasion and tax avoidance at the international level.  It also allows for the exchange of information in various forms (by request, automatic or spontaneous), as well as simultaneous tax inspections, among others.

Regarding the reservations made at the moment of signing, Uruguay reserved the right to not apply the Convention in the following cases:

a) Any form of assistance related to taxes from other parties

b) Assistance in the recovery of a tax credit or of an administrative fine for all taxes

c) Assistance in relation to any tax credit that exists on the  Convention's entry into force date with respect to Uruguay; or when a previous reserve has been made, assistance on a tax credit on the date the reserve is withdrawn with regard to taxes

d) Assistance for the notification or transfer of documents for all taxes

Uruguay also reserved the right to not permit the notification or transfer of documents through mail.

In addition, Uruguay reserved the right to not apply the Convention when tax matters that involve intentional conduct are subject to a judicial proceeding in another country that is a party to the Convention. Under the Convention, this provision would apply as of the Convention's entry into force date in the other country, which means the other country may seek assistance from Uruguay with respect to previous fiscal periods or tax collections. According to Uruguay's reserves, however, this provision would apply to tax periods beginning on or after January 1 of the third year preceding the one in which the Convention, and its modified version by the 2010 Protocol, entered into force in respect to Uruguay. If there are no tax periods, this provision would apply to administrative assistance related to tax collections that arise as of the mentioned date.

The Convention will apply throughout the Uruguayan territory, including maritime areas and the airspace over which Uruguay exercises the rights of sovereignty and jurisdiction in comport with international law and domestic legislation.

The Convention will become effective on the first day of the month following the expiration of a period of three months after the date of receipt of the instrument of ratification, acceptance or approval.

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