This article provides a detailed overview of corporate tax obligations for companies operating in Uruguay, focusing on the current tax rates and rules in force for 2025. The information here covers all core aspects of the Uruguayan corporate tax regime as it stands this year.
Corporate Tax Rate and Assessment in Uruguay (2025)
Uruguay applies a straightforward, flat-rate corporate income tax to companies. The tax is assessed at the corporate level and is based on locally recognized business income.
| Tax Type | Basis | Rate (%) | Currency |
|---|---|---|---|
| Corporate Income Tax (CIT) | Corporate | 25% | UYU (Uruguayan Peso) |
There are no progressive brackets for corporate income tax in Uruguay; all taxable profits are taxed at a flat 25% rate. This simplicity appeals to companies valuing predictability in fiscal planning.
Additional Withholding Taxes in Uruguay
Beyond the standard corporate income tax, Uruguay imposes withholding taxes on certain types of income, particularly when income is sourced in Uruguay but paid to non-residents. The following table summarizes the main withholding tax (WHT) rates and when they apply:
| Withholding Tax Scenario | Rate (%) | Description |
|---|---|---|
| Uruguayan-sourced income to non-residents (excluding permanent establishments) | 12% | Applied as a WHT on most types of income derived by non-residents, except if paid via a permanent establishment. |
| Dividends paid or credited to non-residents | 7% | Companies paying dividends to non-resident shareholders must withhold tax at this rate. |
| Income to entities in low-or-no-tax jurisdictions (LNTJs) | 25% | Income paid to companies located in blacklisted or low-taxed regions faces this elevated rate. |
These withholding regimes are particularly important for international business structures and foreign shareholders, as they can significantly affect total tax liability.
Special Considerations
Currently, Uruguay does not have specific holding period criteria attached to its main corporate tax or withholding rules—such stipulations are not publicly indicated for 2025. Likewise, all noted rates apply universally without published exemptions or variations by business sector.
Pro Tips for Navigating Corporate Tax in Uruguay
- Carefully assess your company’s revenue streams for potential exposure to the 12% or 25% withholding taxes on payments to non-residents, especially if your operational structure involves cross-border entities.
- Dividends paid to foreign shareholders incur a 7% withholding; budget for this in profit distribution planning to avoid surprises.
- If your ownership structure involves entities in low-or-no-tax jurisdictions, the 25% WHT can sharply increase your effective tax rate—review your international placements regularly.
- Since Uruguay maintains a flat rate for corporate income tax, forecast tax liabilities by simply applying the 25% rate to profits, making financial modeling more straightforward than in countries with progressive brackets.
Official Resources
For further official details and updates on corporate taxation, consult the Uruguayan government or tax authority portal: uruguay.gub.uy.
To summarize, Uruguay’s corporate tax framework in 2025 is defined by a flat 25% rate and targeted withholding taxes on non-residents and entities in low-tax jurisdictions. The regime is broadly predictable and lacks tiered brackets or holding requirements, which helps simplify forecasting for internationally oriented companies. Entities with cross-border flows should pay special attention to the withholding rules, as these often represent the most significant additional cost beyond headline CIT.