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.