Advertisement: Increase your sales
Recent Notes and Tags
Related Resources
Top Searches: • uruguay income tax • income taxes in uruguay • income tax in uruguay • income tax uruguay • uruguay income taxes • uruguay taxes • foreign income tax free country retire • individual freedom in uruguay • move dollars to uruguay • retiring in uruguay on social security income • if i move out of the country while making retirement what tax • taxex on expat retirees in uruguay • is retirement income taxable in argentina • uruguay sending dollars to us • uruguay income tax 2011 • do retires have to pay taxes in uruguay • argentina retirement taxes • retirement income taxed in argentinia • uruguay income tax 2011 foreigners • uruguay bank secrecy • uruguay tax law change • uruguay tax on interest income • uruguay new tax • uruguay banking secrecy • uruguay resident tax social security retirement or retiree • foreign income taxed in uruguay • uruguay expat taxes • taxes on retirement income for expats • taxes on retirement uruguay • do you pay income taxes or any type or taxes in argentina • income tac in uruguay • uruguay double taxation us • |
Income Tax for Individuals -
• Page 1 (Original Post) • Page 2 • Page 3 (Newest Replies) •
| Income Tax for Individuals - I'm reading about changes in the Income Tax for individuals / for Uruguayan residents including Foreign residents (economic resident)?This means that if I'm a resident of Uruguay and making money on investments, Real Estate or other I will be paying taxes in Uruguay for my earnings outside?. Will Social Security earnings be taxed too ? |
| "Article in El Pais"
Here is the article from El Pais:Now, figure out: WHAT exactly is proposed to be taxed, HOW exactly it will be implemented, and WHEN exactly it may go into effect. |
| "About when"
It is a project being developed by the Ministry of Economy. After it gets ready, it needs to be approved by the representation of the population (what in other countries is the congress). They need majority of votes to implement it. If they arrived up to this point I THINK the law will be approve as the government has already majority in the cameras. The doubt comes as not government politics leaders are against it.As far as I understood not being an economist or a lawyer... Expert Page: Expat UY; Relocation and Expat Assitance |
Comment #305/25/10 14:38Rural east Colonia departmento | "Oh what a tangled web they weave..."
"Now, figure out: WHAT exactly is proposed to be taxed, HOW exactly it will be implemented, and WHEN exactly it may go into effect."All good questions... especially as the Min of Finance says its to be applied to citizens but the bumf from the presidency says residents. If the gov are as inefficient at taxing foreign income as they are at taxing local business people down here, it won't require much of an effort to avoid the worst of it. I have a feeling that I'll soon be very poor and my SO is about to become a permanent tourist :-) |
| "So, I guess"
its all kind of a shape in the clouds, hehe. Is it an Elephant? Is it Pink? Maybe it looks like a tree right now, but oops, there it goes changing again. William S. wrote something about this sort of stuff. Way too - "Much Ado About Nothing"....;>) |
| "Taxing and Bank Secrecy changes."
Guys, you may not know but these things have been changing throughout the world after the subprime crisis. Uruguay hasn't been particularly fast to implement the changes and that's why it's now strugling to go out of the "grey" list. These and other changes will be implemented, as they are being implemented elsewhere. In the post-crisis world, there won't be too much place to hide income and assets... The IRPF applies to residents, since residency and not citizenry is the applicable concept. If we reside in Uruguay, both citizens and foreing residents, we will pay Uruguayan taxes. Until now, only the income originated in Uruguay was taxed. Now, some of the income originated abroad may also pay taxes in Uruguay if it's brought to Uruguay. It's not clear what types of income. But one thing is clear, you won't pay taxes twice. The idea is that Uruguay will continue to sign agreements to avoid double-taxing. So if you are already paying taxes in your countries of origine, you won't pay in Uruguay. Also, information relevant to taxing will start to be interchanged between countries (even Swizerland was forced to interchange information after the crisis). In the case of Uruguay, this will mainly affect argentineans. Until recently, I thought the anti-double-taxing agreement with Argentina was the one and lonely agreement that Uruguay would not sign. However, I now smell that that is part of the broader negotiations Pepe and Cristina will hold June 2nd in Anchorena. We may be trading with them some very important things. In this negotiations we may loose some things (like being the "tax-free heaven" for argies) and have their green light for our goal of growing as a logistic center in the region. We'll see. |
| "No double taxatiion -"
This is not really about nothing it's about 12%.The profits from Real Estate or Deposit interest in other Countries will be considered Income and be Taxed at that rate. Now Alberto is telling us that if you pay Taxes in the Country where you have your investment you won't pay taxes in Uruguay?. How can you avoid not paying taxes in the United States for Real Estate investment or Bank interest, not easy.I was worried about double taxation. Can the Resident of Uruguay (National or Foreign) choose were to pay Taxes? |
Comment #705/26/10 19:24Rural east Colonia departmento | "Tears of laughter"
"In the post-crisis world, there won't be too much place to hide income and assets"Hahahaha! You're a lovely person Albero but you don't seem to understand the realities of why most very rich people pay little or no income taxes. You just aren't cynical and underhanded enough. :-) As one who grew up in a land of 97.5% income tax and death duties and who became skilled at safeguarding the rural assets of the wealthy, the very idea of the mega-wealthies doing away with their own bolt holes is laughable. More than one third of the world's offshore companies reside on a set of lovely islands called the British Virgins... which are of course a Crown colony of Her Britannic Majesty whose government is coming over all shocked by the ROU's allegedly wicked ways... a fine example of a giant kettle calling the tiny thimble black :-) The truth is that elements of the Gang of 20 just don't like the potential competition the ROU is seen to offer and are offended that we haven't rushed to comply when they told us how to run our own affairs in their best interest. Its neo-imperialistic bullying of the worst sort IMHO. |
Comment #805/26/10 19:55Rural east Colonia departmento | "Survivors"
"This is not really about nothing it's about 12%.The profits from Real Estate or Deposit interest in other Countries will be considered Income and be Taxed at that rate. Now Alberto is telling us that if you pay Taxes in the Country where you have your investment you won't pay taxes in Uruguay?." According to Astori the new rules will only be enforced where there are disclosure and double taxation treaties with the other country involved. After all, without disclosure how could the Uru taxman know whether you had a villa in Valetta or a tower block in Taipei? I have no problems with UK rental profits (which are liable to tax by the Brits) as I never seem to make any. As a good landlord its my duty to visit my UK tenants, listen to their gripes and inspect the properties regularly in accordance with UK codes of practice but the high costs of business travel, hotels, hire cars, meals, entertainment etc seem to eat the profits. The fact that my inspection visits happen during the northern summer is just a coincidence. :-) To quote the ineffable Mr Bob Marley... Some people got hopes and dreams Some people got ways and means. Na-na-na-na-na (na-na, na-na!): We're the survivors :-) |
| "Tears of laughter and double-taxing."
Patrick, I know big money always finds a way. I was refering to us mortals. It will be progresively difficult to hide taxable assets and deposits anywhere. There will probably always be a Cayman Islands somewhere, but they will become isolated and, provided you are not living there, money moving to/from tax-free-heavens will pass through increasing controls. We can see that even in Uruguay. A few years ago if you move 100K dollars into a bank they extended a red carpet in your way to the cashier. Now, you are questioned as if you were to be shamed of moving such amount. You are evading taxes or laundring drugg money unless you prove you are inocent!The Gang 20, and more precisely the G9 (or G7, I think some have already dropped out of the list), are desperate for money to pay for their defficits. They will go for it wherever it is. About double-taxing, I don't know exactly the way they will implement the agreements, but I think the country where the income originates is the one to tax first. And you'll probably will just have to document your pay to apply to tax excemptions, or to get a refund. But beware, this is a gradual process, Uruguay don't have anti-double-taxing agreements with a lot of countries yet. So, depending on where your income comes from, you may pay. |
| ""In this Post Crisis World...""
Until we know for sure, which way the ultra rich will screw us this time, it really is Much Ado About Nothing.>) This 'One World'/ 'New World Order' will have most of us producing nothing and buying products that have 3/4 of their cost in transportation eventually anyway, I guess. Soon even small gems like Uruguay will surrender the brick maker, seamstress, shoe repairman, and metal fabricator. The hammers we buy will have handles that last a couple of months, and the clothes we wear will be so thin they won't hold back a gentle breeze. We'll complain, but go down to Tienda Inglesa and buy more. I think you're right Alberto on the mutual agreement and double taxation issue. But it may take them quite some time before the logistics of this sort of program can be implemented, no? Especially considering Patrick's comment regarding Astori and the mutual disclosure issue. My understanding is that the Swiss are even bringing money into Uruguay now, but I don't have a feel for whether the Government & BROU really want to continue to be gray (at least, to some countries), or not. Ahh, yes, the illustrious Bob Marley. "Survival" (o: |
| "More Paperwork"
If passed it will probably provide much less revenue to Uruguay than they project. It will create much more paperwork for everyone, ie: the government and individuals. It will probably great another burst of inflation like after the 2007 income tax went into effect. It will probably great more hardship for the poor and the economy in general.That is all based on the presumption that this proposal or something like it does pass. What is clear is that simply making the proposal is creating confusion and fear. If indeed the government of Uruguay wants foreigners to move here making this proposal is simply a bad idea. The expats are looking for more simple and better quality of life. If the experience many have with the residency process would be mirrored in the process of making tax returns for foreign earned income... god save the queen! Most important when bringing up issues of "fairness, " it would seem that most expats are already being taxes approximately 22% of the money they bring to Uruguay. At least the money they use for living. Now, that is something I would think the government would look at how to increase. No, of course not increasing the 22% to something larger. Increasing the number of expats coming and spending their money here! That would produce an immediate increase in revenue without stress or paperwork on either side! Brilliant and simple. |
| ""More Paperwork, cont'd""
Great comment Linda! The problem for them is that the Bankers in control of the world's banks had to be paid off handsomely for screwing up the world. Someone has to pay for their errors, and who better than the poor. After all, the poor have been paying for the cavorting of the rich for eons, why stop now? The backs, blood, sweat, and (yes I have to do it) tears of the poor have been stepped on as a matter of course. Mujica and Astori (even with his Chicago connections) represent after all a small country between two very large neighbors in world controlled by even larger players. What can they do? What will they do? Whatever it is will be interesting to watch unfold. Agree that there does need to be the reminder that here the sales tax is really rather strong and the Estranjeros are most certainly paying their share. Had to chuckle a bit when you spoke so lovingly of the 'Tramite'! There is an Argentine actor/comedian, named Antonio Gassalla, who does oddball characters. He does one called "Flora, la empleada publica". If you haven't seen it, try to find it!! ...hehehe, its a gut buster! I think I met her at the Registro Civil when they lost my paperwork, thought I was from the United States of Mexico, took twice the time to change the word "Mexico" to the word "America" than the original Tramite, and tried to charge me twice for their error! (o: ...the price for living in Paradise is actually quite cheap when put into perspective. Gratefully, I'm not in the rat race up North at least. But, speaking of Blood, Sweat & Tears" The link goes to one of their best. |
| "Not just for money."
Linda, I don't think the changes are just to get more tax income. Some of the changes are thought to make the information interchange between countries more consistent or to take some advantage of that consistency. The country is going after it's exclusion from any grey list, what may cause some problems but would also bring us some advantages too. In particular, taxing residents for their financial income abroad is thought to cut off the advantages of sending savings out of the country. While there are about 15 billion dollars in our banks, 4 billion of which are of non-residents; there are about 9 billion dollars of Uruguayans deposited somewhere abroad, mostly in financial heavens. Of course, there's no warranty that the change will be successful in bringing them back; but chances are better as long as information interchange between countries start to increase. If successful, the greatest advantage is not more IRPF collection, but a stronger banking system (many countries tax their citizens abroad just for that). After all, the IRPF for financial income is just 12% of the interest; and interest rates are even lower abroad than in Uruguay. Residents (not only foreign) having savings abroad will have to do more paperwork, or would may be decide to bring them back. If this discourages foreign people from coming to Uruguay, it would be just one more of the bad side effects (there will be other bad and good effects for the Economy). The numbers are not so important for Uruguay, as they can be for other countries as, for example, Costa Rica. Even in Costa Rica, I don't think the retiree comunity is so economicaly important as to change the country's policies. Whatever, I've always thought that a decision so important as to change one's country of residence (and thus, the culture where one lives, the language, the family and frienship links, etc.) should not be based on things like taxing schemes or currency exchange value. Or at least not ONLY on those things. That'd be a huge error, cause those conditions can change fairly easy. |
| "Flora, la empleada pública."
Atrás! Atraaaaaaás! (Back off) That was her theme while attending her desk. It was supposed to be an Argentinean public servant, but it portraited our public servants as well. Gasalla is a genious!Let's hope Mujica will, at least try, to change that too! I think when the war against burocrats really starts, he would think his fight against the Army and the CIA in the sixties had been piece of cake! However, I'm an incorregible optimist. hahaha |
| "Equal Absurdity"
"I've always thought that a decision so important as to change one's country of residence (and thus, the culture where one lives, the language, the family and friendship links, etc.) should not be based on things like taxing schemes or currency exchange value."I don't totally disagree with you. However, oppressive governmental policies (including tax policies) will have a huge impact on where people chose to live. Especially retired people who can freely chose where yo live based on many factors. As the USA shifts into a police state, many will seek to relocation to a place that has shifted away from being a police state. These taxing policies are a big shift toward the police state, not toward individual freedom. Now to the other absurdity! Choosing where you put your money. First I think with respect to interest rates on US Dollar accounts, the banks in Uruguay pay a much lower interest rate than can be found in the USA. Insurance (if you believe in that) is just US$5, 000 on dollar accounts in Uruguay (is that per person or per bank?), and US$250, 000 per bank in the USA. If you have US$1, 000, 000 is it safer to put in banks in Uruguay or 4 banks in the USA? If Uruguayans have chosen to save US$9 billion outside of Uruguay there must be some good reason? Did that all shift after the income tax went into effect in 2007? Before they the interest earned here was tax free? I think the Uruguayan government must look beyond taxes for the reason its citizens have chosen to stash their cash outside. Paperwork issues. Some expats have spend years trying to prove to Immigration they get US$500 a month. How much effort will it take to prove to the taxing authorities they earned $67.50 in interest? How do you think information matching works in the USA? The US government requires banks and others to submit forms with Social Security Numbers (SSNs). Then they spend years trying to match up the submitted forms with what people put on their tax returns. How do you think they will effectively share information with Uruguay? All the banks in the USA (there are thousands of them) will suddenly send a report to Uruguay with all the information on all their customers? Or just customers with Uruguayan addresses? Or, will Uruguay send an inquiry to each bank in the USA for each person in Uruguay asking for details? Or make a single inquiry to the US Government? Since the whole US system is based on SSNs how can the banks (or government) respond? Why should anyone support any system that is complicated and (as you put it) ineffective? Complicated systems simply inspire public employees like Flora and worse. |
| "DRAFT OF THE NEW TAX LAW!"
Find attach the first draft publish at Observa.com.uyAfter open the link, click on: Lea el borrador... Sorry, but is in spanish... Pay atention that a certain point says CITIZENS! Some things for residents and some for citizens. Regards, Ana Inés Expert Page: Expat UY; Relocation and Expat Assitance |
| "Some answers."
"If Uruguayans have chosen to save US$9 billion outside of Uruguay there must be some good reason? Did that all shift after the income tax went into effect in 2007? Before they the interest earned here was tax free?"Some Uruguayans save abroad to divide risks. The old known method of avoiding puting all the eggs in the same basket. However, some (unfortunatelly some of the richer), they send them abroad to hide the result of taxable activities that hadn't been taxed. I mean, not because of the tax those depposits should pay, but because of the taxes that would have to be payed while earning that money. It's the classical circuit black money takes (well, not as black as the one money from drug or weapon dealing; let's call it "grey" money). And of course, that trick is not only made by Uruguayans but by many rich people throughout the world. You get money from a legal or ilegal activity, but you don't want to pay all the taxes, so you send them out where tax authorities cannot see them. Well, this is what the governments are now trying to avoid with the exchange of information. As far as I know, for now the information has to be specifically asked for. No authomatic sending of information. However, we don't know what information tools may be developed in the future. An international crossing of information is technically not that impossible. Anyway, let's not be paranoic. Taxing organizations aren't that efficient yet, and we common savers won't be their first target. |
Comment #1805/27/10 15:08Rural east Colonia departmento | "Countries tax their citizens abroad"
"(many countries tax their citizens abroad just for that)"As far as I know and with the exception of taxes on rented property, only two nations do this... the USA and North Korea. |
| "Taxes -"
Maybe Peter Gannon is right "Much ado about nothing".Patrick if you have problems to Travel to Europe in the Summer I will volunteer to be on your Payroll. About being Neo-Imperialistic bullying of the worst sort?. The origin of the word "Gringo" comes from the Mexicans screaming to the Green uniformed American forces to GO and they did, but took part of Mexico as a souvenir. Maybe it's fair to say that the Banks are running the World including this great land. We are survivors and we can't save the World so lets go to the Beach with a few Patricias(Corona's if the Dollar goes up) and a book about "How to do nothing and enjoy Life" I'm ready and Uruguay is the place. Also is the "Gata de Flora" |
| "Ana's Link"
It didn't work.. so here is one directly to the PDF: |
Comment #2105/27/10 16:42Rural east Colonia departmento | "Wise words"
"We are survivors and we can't save the World so lets go to the Beach with a few Patricias(Corona's if the Dollar goes up) and a book about "How to do nothing and enjoy Life" I'm ready and Uruguay is the place."You are 110% right of course. Stash what you can, enjoy yourself and hope it doesn't happen is the best policy :-) If our Argentinian brothers start worrying about possible disclosures to Cristina I reckon the dollar and sterling will be mighty here once more so make mine a nice chilled bottle of Catalan Cava :-) |
| "Make mine a Gin Martini, shaken, Gordan's or better (o:"
...with 2 olives, 2 dashes of dry vermouth and 1 of Sweet. Picky old F&*t aren't I?So, folks, I'm off this afternoon for the States. Praying the Gestapo doesn't get released prior to my return next month. I'll keep following this thread to see what really happens, but for now I bow to the beautiful wisdom expressed by Jorge & Florence. Chao |
| "Martini."
How have we come from deep economic analysis to a martini recipe? hahahaYou are so right! If you cannot avoid rape, relax and enjoy. |
Comment #2405/28/10 21:38Rural east Colonia departmento | "After the shock"
I should be over the initial shock of all this soon and my brain should start working again... hopefully finding a solution. 12% income tax I can handle but because my retirement income comes from rented UK town houses rather than as pensions or annuities, there is a high capital value involved and 3% annual wealth tax on that lot would exceed my income. Over the years we've talked a lot about acquiring residency and cedulas. Does anyone know how to get rid of both and reverting to permatourist status without actually leaving? :-) |
Reply Options Share your opinions, advice, questions or comments on this post. | You must a registered user and logged in to use this feature: It is quick easy and offers many advantages when using our site. |
Social NetworkingShare this with your friends on facebook, twitter and Google+ | | Social sharing because it feels good:
| |
|
RelatedSome related posts that may be of interest to you. | Related posts: Related posts on other sites: |
• Page 1 (Original Post) • Page 2 • Page 3 (Newest Replies) •
|
