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Withholding tax in Uruguay 2026
Non-residents lose a flat 12% on almost any Uruguayan income — salaries, service fees, royalties, rents and capital gains — withheld by companies, notaries and public bodies acting as agents.
Technical fees billed from abroad to Uruguayan businesses enjoy a famous soft spot: 12% applied to just 5% of the fee, an effective 0.6%.
At a glance
- top rate
- 12% standard, final
- entry band
- 0.6% effective on qualifying technical services from abroad
- tax year basis
- Withheld per payment
- filing deadline
- Self-assessment only when no agent was appointed
- residency basis
- Uruguayan-source income of non-residents
- regime flag
- Increased low-tax-jurisdiction rates do not apply to individuals
Rates
Withholding on non-residents (2026)
| Rate | Base | Applies to |
|---|---|---|
| 12% | Gross | Salaries, independent services performed in Uruguay, royalties, rents and capital gains |
| 7% | Gross dividend | Dividends from profits taxed at company level |
| 0.5% – 12% | Gross interest | Term-and-currency tiers: long-term peso instruments as low as 0.5%, foreign-currency and other interest 12% |
| 0.6% effective | 12% on 5% of the fee | Technical, advertising and management services rendered from abroad to Uruguayan corporate taxpayers |
Withholding residents meet (2026)
| Rate | Base | Applies to |
|---|---|---|
| Progressive (0-36%) | Monthly salary | Employer withholding on work income — usually final |
| 7% / 12% | Gross dividend | Company withholding on distributions, including notional dividends |
| 12% | Gross | Rents and other capital income paid through appointed agents |
Thresholds & allowances
- No-agent fallbackSelf-assess and pay
Non-residents without an appointed withholding agent must name a resident representative and settle directly
Residency
Residency trigger
Corporate taxpayers, notaries, auctioneers and public bodies are the standing withholding agents; their withholding is final for non-residents.
Non-resident treatment
From 2026, selling shares of a foreign company whose value is mostly Uruguayan assets counts as Uruguayan-source; the old requirement that the entity sit in a low-tax jurisdiction is gone.
Notes
- Fees for services to companies with mostly untaxed income escape the net entirely — source follows the payer's taxable status.
- Advance rulings bind the tax office and arrive within 90 days.
- Non-residents with permanent establishments file like local companies within 4-5 months of year-end.
- Payments to individuals in low-tax jurisdictions are expressly excluded from the punitive increased rates that hit entities.
FAQ
What withholding applies to non-residents in Uruguay?
A flat 12% on Uruguayan-source income — with dividends at 7%, tiered interest rates as low as 0.5%, and an effective 0.6% on qualifying technical services billed from abroad.
Who withholds Uruguayan tax on payments to foreigners?
Corporate taxpayers, notaries, auctioneers and public bodies are appointed agents; if none is involved, the non-resident names a resident representative and pays the 12% directly.
Figures: tax year 2026, compiled from public sources. Not tax advice.