30 November 2019 Share

Tax residence in Uruguay

Although Argentina seems more stabilized and soon the change of presidential command will take place, the political and economic transformations after the primary elections have led many Argentines to change their fiscal residence.

In addition to stability, our country offers proximity, aspects of culture in common, spas with high demand during the holiday period, etc.

To be a fiscal resident in our country, one of the following two conditions is taken into account: a) Physical permanence in our country greater than 183 days and b) Filing in Uruguay of the main nucleus, which covers the following items: 1) basis of their activities or economic interests and 2) vital interests.

In item a) It is established that “setting up residence by this criterion requires permanence in Uruguay for more than 183 days in the calendar year”. To determine this, sporadic absences will be computed under the conditions established by the regulations, unless the taxpayer accredits his fiscal residence in another country. And for the permanence in our territory, the “Certificate of Arrival” must be presented, which is formulated in the National Migration Office.

b) Filing in Uruguay of the main nucleus: it is possible to prove it by means of the Notarial or Accounting Certificate that provides information on the total income, 1) The base of its activities or its economic interests: It is understood that a person is based in national territory when The main nucleus or the base of its activities generates income in our country of greater volume than in any other territory.

In the specific case of economic interests, the DGI has not issued any information that alleges sufficient proof. However, the property title, proof of payment for the purchase of shares, among others, could be qualified as accepted documents to prove this point. The DGI will be in charge of evaluating each application and requesting additional information to approve the fiscal residence.

2) Vital interests: they are considered in this way when the spouse and minor children depend on the taxpayer, so that the spouse must not be legally separated and the children must be subject to parental rights. In case of not having children, the presence of the spouse will suffice. This item can be accredited, for example, with the registration of the children in an educational institution, belonging to a sports club, being a member of a mutualist in the national territory, as well as tokens or enrollments of similar validity.

Material generated from the site: DGI Uruguay