02/03/22

SOUTH AMERICA: Uruguay makes updates to list of low- and no-tax jurisdictions.

As published on step.org/industry-news, Wednesday 2 March, 2022.

Uruguay has updated its list of countries, jurisdictions and special regimes of low or no taxation, in effect as of February 21, 2022.

The list was published by Uruguay’s General Tax Directorate (Dirección General Impositiva) through Resolución DGI No. 223/022, which amends the country’s Ley No. 19.484 de 5 de enero de 2017 governing tax transparency, beneficial ownership and anti-money laundering regulation.

The tax authority has updated the list from the 2021 version, removing Antigua and Barbuda, Brunei and Dominica. Thirty-six countries remain on the list.

The resolution states that it “establishes provisions for the purpose of discouraging the use of entities resident, domiciled, incorporated or located in countries or jurisdictions with low or no taxation or that benefit from a special regime of low or zero taxation”. However, it further notes that the identified jurisdictions will be removed from the list when they are fully engaged in the automatic exchange of information for tax purposes.

Uruguay itself has recently been added to the EU Code of Conduct Group (Business Taxation) Annex II “grey list” of non-cooperative jurisdictions for tax purposes. The list comprises jurisdictions that have various issues still to address but that have committed to complying with the EU’s definition of tax cooperation.

According to the EU report, Uruguay has committed to amending or abolishing its harmful foreign-source income exemption regimes by December 31, 2022.