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21 April 2023

Uruguay's Executive Branch raises income limit to apply for simplified regime for Personal Income Tax

  • Uruguay´s Executive Power has increased the income limit applicable to the simplified regime for personal income tax for the 2023 tax period.
  • The new limit will be effective for taxable events occurring on 31 December 2023 and later.

In Decree No. 118/023, Uruguay's Executive Power has increased the income limit for taxpayers who want to apply for the simplified regime for personal income tax for the 2023 tax period. This new limit updates the one established in Decree No. 20/023 (see "Uruguay's Executive Branch increases income limit to apply for simplified regime for Personal Income Tax," dated 27 March 2023).

The new limit allows taxpayers who have salaries up to UYU56,700 (approximately US$1,445) per month and up to UYU674,400 annually (approximately US$17,310) to qualify for the simplified regime.

Decree No. 118/023, which is still pending publication in the Official Gazette, was issued on 13 April 2023 and will be effective for taxable events occurring 31 December 2023 and later. It can be accessed here (only in Spanish).

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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

Published by NTD’s Tax Technical Knowledge Services group; Carolyn Wright, legal editor

Document ID: 2023-0749

 

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