On Aug. 30, URY Tax revised IT professionals tax benefits Law 20.191.
URY TAX ruled on taxation of foreign/domestic IT professionals, and retirement plans.
Tax and Social Security
Tech workers who move to Uruguay for employment may wish to be taxed at local or foreign level and have no obligation to participate in the local social security system.
The option to chose whether or not to participate in social security will depend on if the foreign/local person has not verified tax residence in Uruguay for the last five years.
Also if full-time activity in the national territory for at least 2/3 of the calendar year, or if individual obtains totality of income in the national territory for benefit of services.
Individual must exercise the options at the beginning of the employment relationship.
Applicable to the calendar year; and will be verified again in the next four years.
When noncompliant, cannot continue to use options, will be taxed by general regime.
If the worker decides to renounce, it will be irrevocable and will include both taxes.
Effectiveness
Options will apply to employment contracts initiated up to and including Feb. 28, 2025.
