6.1. Main Rules Governing the Determination of Taxable Income
Tax is imposed on taxable profit, which is accounting profit earned in the accounting period after tax adjustments. An inflation adjustment is applied. All Uruguay-source income is taxable. Expenses are deductible to the extent that they are incurred in producing taxable income.Uruguayan companies that are engaged in the business of trading foreign goods and/or services that are not used/ consumed in Uruguay can determine their net Uruguayan-source income on a notional basis of 3% of the gross margin. Such computation has to be compliant with the relevant transfer pricing rules.