Uruguay - Taxation

Corporate tax is imposed on industrial and commercial income at a rate of 30%. A 30% withholding tax is imposed on dividends. Other taxes include a commissions tax of 9% and a capital tax of 15%. Personal income and inheritance taxes were repealed in 1974. There is, however, a fringe benefits tax (FBT) applied to all corporations and individuals except for agricultural and industrial activities. The FBT rate is 18.5% for employers and 21% for employees. There is also a 1.5% net worth tax, increased to 2.8% on banking activities, and ranging from 1.5% to 2% on banking assets.

The most important indirect tax is Uruguay's value-added tax (VAT) instituted in January 1968. The standard rate is 23% and there is a reduced rate of 14% on necessities.

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