Uruguay
Uruguay’s legal framework implementing the AEOI Standard is in place and is consistent with the requirements of the AEOI Terms of Reference. This includes Uruguay’s domestic legislative framework requiring Reporting Financial Institutions to conduct the due diligence and reporting procedures (CR1) and its international legal framework to exchange the information with all of Uruguay’s Interested Appropriate Partners (CR2).
Uruguay can legally issue the following type of ruling within the scope of the transparency framework: cross-border unilateral APAs and any other cross-border unilateral tax rulings (such as an advance tax ruling) covering transfer pricing or the application of transfer pricing principles
La pobreza en Uruguay aumentó del 3.6% en 2016 al 5.2% en 2020 debido, en parte, a las repercusiones de la pandemia de COVID-19, pero sigue siendo muy inferior al promedio, 26.3%, registrado en América Latina y el Caribe (ALC). La pobreza extrema también aumentó en ese periodo, pasando del 0.2% al 0.3%, y se sitúa igualmente por debajo del promedio de ALC (8.7%). La población que vive en hogares completamente informales prácticamente se redujo a la mitad –del 28.5% en 2008 al 16.3% en 2018– situándose por debajo del promedio de ALC del 36.3% en 2018. En lo que respecta a los indicadores medioambientales, en 2019 se registraron emisiones de gases de efecto invernadero (GEI) per cápita de 10.4 toneladas equivalentes de dióxido de carbono (t CO2e), superiores a los promedios de ALC (6.3) y de los países miembros de la Organización de Cooperación y Desarrollo Económicos (OCDE) (9.1). Ese año, la proporción de población expuesta a niveles de contaminación del aire que suponen un riesgo para la salud humana (PM2.5 a más de 10 µg/m3) fue del 26.5%, situándose muy por debajo del 95.4% registrado en ALC y del 61.0% en los países miembros de la OCDE. La zona marina protegida de Uruguay representó el 0.75% de sus aguas territoriales en 2021, muy por debajo del 7.3% registrado en ALC y del 18.6% en la OCDE. En materia fiscal, los ingresos tributarios ambientales supusieron el 1.8% del producto interno bruto (PIB) en 2020, por encima de ALC (1.0%) pero ligeramente por debajo de la OCDE (2.1%). El total de ingresos tributarios expresado como porcentaje del PIB (26.6%) en 2020 siguió siendo superior al promedio de ALC (21.9%) aunque inferior al promedio de la OCDE (33.5%).
Poverty in Uruguay increased from 3.6% in 2016 to 5.2% in 2020, partly owing to the impact of the COVID-19 pandemic, but remains substantially lower than the Latin America and the Caribbean (LAC) average of 26.3%. Extreme poverty increased in that period from 0.2% to 0.3%, also far below the LAC average (8.7%). The population living in completely informal households decreased by almost half – from 28.5% in 2008 to 16.3% in 2018 – bringing it far below the LAC average of 36.3% in 2018. Regarding environmental indicators, in 2019, greenhouse gas (GHG) emissions per capita were 10.4 tonnes of carbon dioxide equivalent (t CO2e), higher than the averages for LAC (6.3) and countries belonging to the Organisation for Economic Co-operation and Development (OECD) (9.1). That year, the share of the population exposed to air pollution levels that pose risks to human health (PM2.5 at more than 10 µg/m3) was 26.5%, substantially lower than 95.4% for LAC and 61.0% for the OECD. The marine protected area of Uruguay accounted for 0.75% of its territorial waters in 2021, far below 7.3% for LAC and 18.6% for the OECD. On the fiscal side, environmentally related tax revenue was 1.8% of gross domestic product (GDP) in 2020, above LAC (1.0%) but slightly below the OECD (2.1%). Total tax revenues as a percentage of GDP in 2020 (26.6%) remained higher than the average for LAC (21.9%) but below the OECD (33.5%).
This report analyses the implementation of the AEOI Standard in Uruguay with respect to the requirements of the AEOI Terms of Reference. It assesses both the legal frameworks put in place to implement the AEOI Standard and the effectiveness of the implementation of the AEOI Standard in practice.
La crisis provocada por la pandemia de COVID-19 ha impactado negativamente a la economía uruguaya. En 2020, el producto interno bruto (PIB) cayó un 5.9% anual, afectando sobre todo a los grupos más vulnerables. En 2020, la tasa de pobreza, de acuerdo con las últimas estimaciones internacionales comparables, alcanzó el 5.1%, aumentando en dos puntos porcentuales, aunque sigue siendo una de las más bajas de la región de América Latina y el Caribe (ALC) y considerablemente inferior al promedio regional, del 30.9%. En 2020, el 75.1% de los uruguayos se declararon satisfechos con la calidad de la atención sanitaria, una cifra solo dos puntos porcentuales más baja que diez años atrás. Este porcentaje es muy superior al 48.2% registrado en la región de ALC e incluso más elevado que el promedio de la Organización para la Cooperación y el Desarrollo Económicos (OCDE), del 70.7%. Uruguay destaca como el país con mayor gasto público en atención sanitaria en ALC: un 9.3% del PIB, frente a un 6.8% en la región de ALC y un 8.8% en la OCDE. Aunque la pandemia afectó también al sistema educativo, Uruguay estuvo entre los países de ALC que lograron minimizar la interrupción de la educación de los alumnos. Entre marzo de 2020 y mayo de 2021, las escuelas cerraron durante 14 semanas, menor a la media de la región de ALC (26 semanas) y cercano al promedio de la OCDE (15 semanas). Durante las semanas de cierre, el aprendizaje en línea ayudó a mitigar el impacto negativo en los alumnos, ya que el 47.4% de las escuelas tenían acceso a plataformas digitales, una cifra superior a la media de la región de ALC (32.5%), aunque ligeramente inferior al promedio de la OCDE (54.1%).
Uruguay can legally issue the following type of ruling within the scope of the transparency framework: cross-border unilateral APAs and any other cross-border unilateral tax rulings (such as an advance tax ruling) covering transfer pricing or the application of transfer pricing principles
The economic crisis due to the COVID-19 pandemic has negatively affected Uruguay’s economy. In 2020, gross domestic product (GDP) fell by 5.9% annually. The impact of the crisis has affected, above all, the most vulnerable groups. In 2020, the poverty rate based on latest international comparable estimations has reached 5.1%, increasing by two percentage points, compared to a year earlier, although it continues to be one of the lowest rates in Latin America and the Caribbean (LAC) and considerably below the regional average (30.9%). The quality of health services helped cushion the crisis. In 2020, 75.1% of people in Uruguay declared being satisfied with the quality of health care, just two percentage points lower than ten years earlier. This proportion is much higher than in LAC (48.2%) and even higher than the Organisation for Economic Co-operation and Development (OECD) average (70.7%). Uruguay stands out as the country with the highest public expenditures on health care in LAC: 9.3% of GDP, compared to 6.8% average in LAC and 8.8% in the OECD. Although the pandemic affected the education system as well, Uruguay was among the LAC countries that managed to minimise disruption in education for students. Between March 2020 and May 2021, schools were fully closed for 14 weeks, much less than the LAC average (26 weeks) and below the OECD average (15 weeks). Moreover, during the weeks of closure, online learning helped mitigate the negative impact on students. In Uruguay, 47.4% of schools had access to effective online learning, more than two times higher than the LAC average (32.5%), although slightly below the OECD average (54.1%).
Uruguay’s legal framework implementing the AEOI Standard is in place but needs improvement in order to be fully consistent with the requirements of the AEOI Terms of Reference. While Uruguay’s international legal framework to exchange the information with all of Uruguay’s Interested Appropriate Partners (CR2) is consistent with the requirements, its domestic legislative framework requiring Reporting Financial Institutions to conduct the due diligence and reporting procedures (CR1) has deficiencies significant to the proper functioning of elements of the AEOI Standard. More specifically, some definitions necessary to define Reportable Financial Institutions and Financial Accounts are incomplete, and there are no rules to prevent the circumvention of the due diligence and reporting procedures.
This chapter describes and assesses corporate taxation in Uruguay with a focus on tax incentives. Tax incentives in Uruguay are used extensively and vary across investments depending on where, when and by whom an investment is made in the country. The chapter first provides an overview on tax revenues and the corporate tax system in Uruguay. It then provides a description and an assessment of the country's tax incentives regime for investment. Two following sections further discuss the use and governance of tax incentives in Uruguay, providing specific policy recommendations on how to enhance the use and governance of tax incentives in alignment with investment and tax policy objectives.
Uruguay's domestic legal framework provides protection for investors consistent with an open and modern policy regime for investment. This chapter provides an overview of provisions in both domestic legislation and Uruguay's international investment agreements offering protections for investors. It looks into the rules of expropriation, contract enforcement and dispute settlement as well as the regimes for intellectual property rights. It also reviews Uruguay's international investment treaty practice and its legal framework for investor-state dispute settlement.
The chapter reviews investment promotion and facilitation policy in Uruguay. It first provides an overview of the overall institutional and regulatory framework, including those regulating investment incentives. It also analyses the activities of the national investment promotion agency, Uruguay XXI, and benchmarks via-à-vis agencies in the OECD economies. Finally, it assesses the country’s investment facilitation and administrative simplification efforts and identifies possible improvements in the area of regulatory quality. It concludes with key policy recommendations.
Uruguay is a relatively small, high-income and fast-growing economy. Policy-makers have worked toward the objective of gradually integrating Uruguay into the global economy, strengthening and cementing democratic institutions and improving the overall well-being of the local population. This policy coupled with lack of formal restrictions on activities of foreign enterprises have led to high levels of foreign direct investment (FDI) in the economy. This chapter presents Uruguay’s situation in terms of its overall economic performance and FDI trends over the past two decades to provide key insights on the role – and evolution – of foreign investment in the Uruguayan economy.