The General Tax Directorate (DGI), dependent on Ministry of Economy and Finance (MEF) launched a series of incentives for workers dependent on the transportation sector to settle in the country. information technology (ITEM).
Through Law 20,191, regulated by Decree 360/023, the government seeks to grant tax benefits to attract Uruguay to technicians and professionals ITEM with employment contracts in a dependency relationship in companies with regular and permanent activity.
Among the benefits reported by the DGI appear to choose to pay the Non-Resident Income Tax (IRNR) for the calendar year in which it is verified and during the following 4, in relation to the work income obtained for the aforementioned provision of services.
From the portfolio dependent on the MEF They clarified that “if they exercised that option, they may choose not to benefit from the social security system in force in the Republic, in which case there will be no obligation to make the corresponding contributions.”
Meanwhile, they specified that the options on the part of the worker are made only once at the beginning of the first employment relationship, presenting Form 3200 to their employer. This in turn must keep the form for the term of prescription of the taxes and register to the worker on the portal B.P.S. with the corresponding employment relationship.
The retention of IRNR will be determined by applying the rate of 12% on the nominal value of the monthly computable income and must be paid to DGI the month following the accreditation or payment of said income.
The requirements to meet
To access the incentives, beneficiaries must simultaneously meet these conditions:
- Be foreign or national and not having verified the tax residence in the country in the last five fiscal years prior to the transfer to the national territory.
- Develop the activity full time in the country and register an effective physical presence in the country for at least two-thirds of the days during the calendar year.
- Obtain all of the income from work in Uruguay, exclusively in a dependency relationship, for the provision of services directly linked to the performance of research and development activities included in literal S) of article 52 of title 4 of the 1996 Ordered Text.
An incentive that is added to other benefits
The government has been promoting measures to attract workers from the IT sector and in that framework, in the middle of the year, it approved a special residence permit that opened the doors to the digital nomads.
The country thus joined the group of 50 nations that since the Covid-19 pandemic began to pave the way for this type of remote work. Thus, remote workers can access a residence permit which enables you to work legally in the country for a period of between six and twelve months.
In turn, months ago, the Parliament passed the talent attraction law ITEM, that enables technicians and professionals from the sector from abroad to work and settle in the country with tax incentives.
The objective is to cover the gap in this type of specialized labor, with nearly 3,500 vacant positions, according to a survey by the Uruguayan Chamber of Information Technologies (CUTI).
Source: Ambito
