July 15, 2022
Uruguay's Executive Power presents accountability bill for 2021 to Parliament
On June 30, 2022, Uruguay's Executive Power presented to the Parliament the national accountability bill for 2021. The proposed tax measures would be effective January 1, 2023.
For individual taxpayers, the bill would reduce the tax rates on interest income derived from deposits, debt securities and other capital income. The new tax rates would vary from 0.5% to 12%, depending on the type of transaction, the currency and the terms granted.
Regarding the nonresident income tax, the bill would exempt interest income from debt securities and financial trusts issued by a corporation taxpayer from nonresident income tax if more than 90% of the corporation's assets generate non-taxable income.
The bill also would establish that debts owed to the National Agency of Development may be deducted from the net worth tax calculation. Additionally, the bill would modify the calculation of the net worth tax on agricultural activities by excluding the surface occupied by protected natural forests from the computation.
The bill would increase the cap on annual deductions for special donations made to certain institutions from UYU 533,439,871 (approx. USD 13,306,000) to UYU 550,000,000 (approx. USD 13,750,000).