The global solution for payroll professionals, combines custom research, strategic white papers, country primers, webinars, and the expert guidance you’ve come...
By Molly Ward
June 7—The income tax rate in Uruguay for individuals with monthly earnings from 33,400 pesos ($1,090) to 50,100 pesos ($1,635) would remain at 15 percent instead of increasing to 18 percent, according to amendments announced June 6 by the Minister of Economy and Finance Danilo Astori that would modify previously proposed income tax rates .
Other changes include a subdivision for the fourth tax bracket, which was initially pegged at 23 percent for income greater than 50,100 pesos up to 167,000 pesos ($5,431) per month. Under the new agreement, the bracket would be divided into two: income from 50,100 pesos to 100,200 pesos ($3,270) would be taxed at 24 percent while the second subdivision, from 100,200 pesos to 167,000 pesos, would be taxed at 25 percent.
The income tax rate for individuals making from 167,000 pesos ($5,431) to 250,500 pesos ($8,174) per month would increase to 27 percent from the current 22 percent while the income tax rates for individuals making from 250,500 pesos to 384,100 pesos ($12,533) per month would increase to 31 percent from 25 percent. Income over 384,000 pesos per month would be taxed at 36 percent, up from 30 percent.
Under changes to employee social tax rates, income greater than 50,100 pesos and up to 167,000 pesos per month would be taxed at 24 percent, an increase from the current 20 percent. Income greater than 167,000 pesos per month would be taxed at 30 percent, an increase from 25 percent.
The bracket for income greater than 26,720 pesos ($872) and up to 50,100 pesos per month would continue to be taxed at 10 percent, with all income below 26,720 pesos per month remaining tax free.
The amendments do not address employer contributions for social taxes.
The changes are to be sent to parliament next week with a “fast” discussion expected, Astori said. If approved, the rates are expected to be effective Jan. 1, 2017.
To contact the reporter on this story: Molly Ward at email@example.com
To contact the editor responsible for this story: Michael Baer at firstname.lastname@example.org
The news release on the changes can be found in Spanish at https://www.presidencia.gub.uy/comunicacion/comunicacionnoticias/astori-irpf-acuerdo.
More information on payroll issues in Uruguay can be found in the Uruguay country primer.
Notify me when updates are available (No standing order will be created).
Put me on standing order
Notify me when new releases are available (no standing order will be created)