Uruguay IRAE Corporate Tax Guide 2026

Uruguay's Impuesto a la Renta de las Actividades Económicas (IRAE) is the corporate income tax with a standard rate of 25%. Special rates apply: 12% for agricultural activities and 0% for qualifying free zone companies and small businesses under the monotributo regime. The tax is administered by the DGI on a calendar year basis.

Uruguay's IRAE is the primary corporate tax. For related guidance, see our IVA Guide →, Personal Tax Guide →, and Free Zones Guide →.

Corporate Tax Rate Schedule

Standard rate (IRAE): 25% on net taxable profits for most businesses and corporations
Agricultural sector: 12% reduced rate for agricultural, livestock, and related activities
Free zones: 0% CIT for companies operating within Uruguay's free trade zones
Monotributo (small businesses): 0% IRAE — simplified regime for small taxpayers with a single monthly payment

The rate applies to net taxable profit determined under Uruguayan tax law. The tax year is the calendar year (January 1 to December 31).

Dividend and Profit Distribution

Individuals (resident): Dividends received by resident individuals are subject to 0% withholding tax
Non-residents: Dividends paid to non-residents are subject to 7% WHT
Corporate shareholders: Dividends paid between Uruguayan corporations are generally exempt

Branch Profits and Permanent Establishments

Foreign companies operating through a branch or permanent establishment (PE) in Uruguay are subject to the standard 25% IRAE rate on profits attributable to the Uruguayan PE
Branch profits remitted to the head office are subject to the same WHT treatment as dividends (7% for non-residents)

Tax Depreciation and Amortization

Fixed assets: Depreciated using the straight-line method over estimated useful lives (buildings 50 years, machinery 10 years, vehicles 5 years)
Intangible assets: Amortized over their useful life or legal protection period
Accelerated depreciation: May be available for certain qualifying investments under specific regimes

Tax Loss Carryforward

Operating tax losses can be carried forward for up to 5 fiscal years
No carryback of losses is permitted
Losses must be properly documented and reported in the annual tax return

FAQs

What is the standard corporate tax rate in Uruguay?

The standard IRAE rate is 25% on net taxable profits. Agricultural activities benefit from a reduced 12% rate, and free zone companies pay 0%.

Are there transfer pricing rules in Uruguay?

Yes, Uruguay has transfer pricing rules aligned with OECD guidelines. Related-party transactions must be at arm's length, with documentation requirements including local file and master file for qualifying entities.

What is the Monotributo regime?

The monotributo is a simplified tax regime for small businesses that replaces IRAE and IVA with a single monthly payment. It is available for taxpayers with annual revenue below a certain threshold.

Disclaimer

This guide provides general information about Uruguay's IRAE corporate tax for 2026. Rates and rules may change. Always consult a qualified Uruguayan contador or the DGI for specific guidance. InvestmentKit does not provide tax advice.