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Uruguay

Dividend tax in Uruguay

Compare Panama Paraguay
Dividend WHT7%Standard domestic rate
Resident shareholder tax0% / 12%Depends on source
Non-resident dividend tax7%Usually withheld
Retained earnings7%After three years in some cases

How dividend tax works in Uruguay

Uruguay generally taxes dividends through withholding. Dividends and profits paid or credited by CIT payers are usually subject to 7% WHT when they derive from taxable income.

Some distributions are treated differently. Resident shareholders can be exempt where the profits are from non-taxable CIT income, while certain foreign-source movable-capital distributions can be taxed at 12%.

Under the 2025-2029 Budget Law, some dividends and profits paid by Uruguayan entities may be exempt if they are taxed in the recipient's country and that country grants a tax credit for the Uruguayan tax. The exemption is subject to the detailed rules that regulations will confirm.

Non-distributed earnings can also be subject to 7% dividend WHT after three years in some cases, so the timing of distributions matters.

Tax rates at a glance

Dividend withholding tax
7%Standard rate
Resident dividend tax
0% / 12%
Foreign dividend WHT
7%
Deferred earnings
7%

Who benefits most

These profiles tend to benefit most when the rules match their real residence, payroll and business setup.

InvestorsHolding companiesFoundersFamily officesShareholders

Watch out for

  • Dividend tax is not one number in every case. The source of profits, the shareholder's residence, treaty relief and whether the profits were already taxed in Uruguay all matter.
  • Shareholder records should clearly show whether profits came from taxable or non-taxable income, because that drives the withholding treatment.
  • Foreign tax credits can matter more than the Uruguayan rate if you are investing through a foreign holding company or live outside Uruguay.
  • If you are looking at a 2025 year-end distribution, check whether the new 2026 exemption rules apply to your facts and whether regulations are already in force.

Frequently asked questions

Does Uruguay tax dividends?

Yes. Uruguay generally withholds 7% on dividends and profits paid by CIT payers, subject to source and exemption rules.

Is there dividend tax on resident shareholders?

Often no on distributions from non-taxable CIT income, but 12% can apply in some foreign-source movable-capital cases.

Is there dividend withholding tax in Uruguay?

Yes. The standard domestic withholding rate is 7%, and some non-distributed earnings can also be captured after three years.