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<p>Tax Insights
from International Tax Services
www.pwc.com
Uruguay approves significant new
tax provisions to enhance
transparency
April 6, 2017
In brief
The Uruguayan Congress recently passed Law 19,484 (Tax Transparency Law), which includes provisions
designed to meet international standards on tax transparency. The law includes rules to discourage
structures or transactions that involve low-or-no-tax jurisdictions (LNTJs).
Most of these measures took effect on January 1, 2017, and may significantly affect individuals and
companies operating in Uruguay with or through LNTJs. The measures include new substantive criteria
for defining LNTJs and a new list of LNTJs.
This Tax Insight addresses the new law’s most important provisions that will have local and international
impact.
In detail
Required annual
submission of information
to the Tax Office
Resident financial entities
and branches of non-resident
financial entities located in
Uruguay must annually
submit to the Tax Office
(DGI) specific information
regarding accounts held by
residents and non-resident
individuals and legal entities.
The required information
includes account balances at
calendar year-end, as well as
annual average balances and
related income. Financial
entities also must disclose
income generated in
connection with financial
assets in custody or with
investments on behalf of
third parties.
Laws related to bank secrecy,
protection of personal data
laws, and other provisions
creating a duty of secrecy,
reservation, or confidentiality
do not apply for purposes of
complying with this new law.
Identification of ultimate
beneficiaries and
registered (nominative)
title holders
Resident and non-resident
entities must identify and
report the ultimate
beneficiaries and their
respective percentage of
participation to the Central
Bank of Uruguay, as well as
disclose their chain of legal
ownership.
In addition, entities with
registered shares or quotas
must submit certain
informa