From the collection of the General Tax Directorate in this sector of digital consumption and entertainment, a significant expansion was observed in 2022.
The sector of service platformsboth audiovisual and those that function as intermediaries for accommodation or private transportation, continue to grow in Uruguay, according to the collection data of the General Tax Directorate (DGI).
There are no exact updated figures on how many people in the country use this type of service. What is certain is that, with devices with internet access In almost all homes, these types of services are increasingly chosen within a new dynamic of digital consumption and entertainment.
However, through the taxes paid to the DGI in 2022, an estimate of the growth experienced by companies in this sector can be made, especially if one takes into account that, last year, there were fewer companies in the sector than paid in the country. In this way, according to the information to which the weekly Búsqueda had access, the tax agency collected $39.4 million in taxes from service platforms.
This amount takes on a greater dimension when compared to what was collected in previous years: in 2018, the DGI only charged them 27 million dollars, while in 2019 the total was 30.6 million dollars. Although in 2020 the collection fell to 28.3 million, the following year it returned to 30.9 million. Now, the significant leap was made from that year to the past, where taxes paid grew by 27.5%even with two fewer companies paying taxes —24 in 2022 against 26 in 2021.
What taxes do service platforms pay in Uruguay?
In the country, audiovisual content transmission services —such as Netflix and Spotify— and intermediation services of multilateral platforms —such as airbnb either Uber— are hit by the Value Added Tax (VAT)although in the latter case, if the offeror or the claimant are abroad, they are only taxed at 50%.
Also applies the Income Tax for Non-Residents (IRNR) to mediation or intermediation activities in services provided through the Internet, technological platforms and applications, depending on where the service provider and the consumer are located: 100% of the rate (of 12%) if both are in national territory and 50 % (6% rate) if someone resides abroad.
Regarding VAT, the DGI collected $25.6 million in 2022while from IRNR, they entered $13.9 million —when between 2018 and 2021 the amount was around 10 million on average.
Source: Ambito
