Presentation on theme: "Montevideo – Uruguay www.estudiorda.com. Estudio RDA is a medium-sized traditional law firm that basically provides legal services to markets in Latin."— Presentation transcript:
Montevideo – Uruguay
Estudio RDA is a medium-sized traditional law firm that basically provides legal services to markets in Latin America and Europe and which in the last 30 years has specialized in tax planning. Our main services are: legal advising accounting notarial auditing outsourcing fiduciary real estate (urban and rural) Our firm is formed by lawyers, accountants and notaries who pride themselves on the professionalism of their work.
URUGUAY GEOGRAPHICAL LOCATION Uruguay is located in the southeastern part of South America. The country is bounded in the east by the Atlantic Ocean with 650 km of coastline. Uruguay is well known for its natural resources, vast prairies, wildlife and rich multicultural history.
FACTS ABOUT URUGUAY Independent since 1830 Capital: Montevideo Area: 177,000 km 2 Population:3,300,000 (2011) Language: Spanish Government: Democratic Representative Republic Literacy:98.3% GDP per capita – USD 15,000
URUGUAY AS A FISCAL JURISDICTION Uruguay has adopted the territorial source principle of taxation with certain exceptions. The different taxes levy income from Uruguayan source, i.e, those which derive from activities developed, assets located or rights used economically in Uruguay. Uruguay has never been a tax heaven. Territorial source principle
“Reasonable” rate of taxation Net Income (Legal persons) 25% Dividend distribution 7% Net worth tax 1.5% URUGUAY AS A FISCAL JURISDICTION Assets, income and dividends outside Uruguay are exempt.
Treaties in force: Germany Hungary Spain Mexico Switzerland Liechtenstein Portugal Treaties pending parliamentary confirmation: Malta South Korea Ecuador India Argentina Tax Information Exchange Treaties: Sweden France Treaties to avoid double taxation URUGUAY AS A FISCAL JURISDICTION
TAXES The Uruguayan taxation system is governed by the principle of territorial source, thus levying taxes only on activities carried out in the country. GENERAL CHARACTERISTICS Scope: Uruguay and abroad. Shares: Bearer and registered shares. Board of Directors: can be formed by a single director, either a physical or legal person, resident or non-resident. Agents: appointed by the Board of Directors and may be revoked at any time. Shareholders: there can be a single shareholder, whether a physical or legal person, resident or non-resident URUGUAYAN CORPORATIONS (ON SHORE) Governed by Act N° of Jan. 5, 1990
TRADING OPERATIONS DIAGRAM COUNTRY A EXPORTER COUNTRY B PURCHASER (Country of destination) TRADING COMPANY On Shore – Uruguay In these trading operations Uruguayan companies only pay a rate of 0.75% on net profits and shareholders 0.21% on dividends. Only 3% of profits are taxed at a regular rate of 25%. Goods, securities or services
FREE TRADE ZONES OPERATIONS IN AND FROM FREE TRADE ZONES ARE TAX EXEMPT Professional, financial, banking and IT services Storage and Fractioning of goods Trading of goods and services