How corporate tax works in Uruguay
Uruguay's CIT is 25% on net income from business activities carried on in Uruguay. The system is territorial, so the first question is usually whether the income is Uruguayan-source or not.
The 2025-2029 Budget Law introduced a domestic minimum top-up tax aligned with Pillar Two. It applies to constituent entities in groups with consolidated revenue of at least EUR 750 million and is effective for fiscal years ending on or after 16 December 2025.
Companies also face an annual net wealth tax, normally at 1.5% on net assets located or economically used in Uruguay, plus monthly advance payments, branch profit withholding in some cases and ICOSA on incorporation and yearly maintenance.
Uruguay also has 22% VAT, a 10% reduced rate for selected goods and services, and payroll social security obligations that should be modeled alongside company tax.
Tax rates at a glance
- Corporate income tax
- 25%Standard rate
- Domestic minimum top-up tax
- 15%
- Company wealth tax
- 1.5%
- LNTJ wealth tax
- 3%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
FoundersHolding companiesRegional operatorsInvestorsMultinational groups
Watch out for
- The 25% CIT is only the headline rate. DMTT, wealth tax, ICOSA, withholding taxes, VAT and social security can all move the effective cost.
- Branches and permanent establishments are taxed too, and profit remittances to a head office can carry 7% withholding.
- Trading companies can be taxed on a notional gross-margin basis in some cases, which changes the effective rate significantly.
- The Budget Law introduced multiple 2026 changes, so model both the old and new rules if you have a year-end spanning the transition.
Frequently asked questions
Does Uruguay have corporate income tax?
Yes. Uruguay generally taxes corporate profits at 25% on Uruguayan-source income.
Who pays the 15% DMTT in Uruguay?
Large multinational groups in scope of Pillar Two can face a 15% domestic minimum top-up tax, effective for fiscal years ending on or after 16 December 2025.
Is Uruguay good for companies?
It can be, but the real answer depends on source rules, wealth tax, VAT, social security, withholding taxes, free-zone or incentive status and whether the group falls into DMTT scope.