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5.5. Source Rules with Respect to Income Derived by Non-Residents


Dividends received from companies that are incorporated and registered in Uruguay and from foreign companies authorized to operate in Uruguay are deemed Uruguayan sourced.


Interest paid by Uruguayan residents to non-residents is deemed Uruguayan sourced.


Royalty fees paid for the use of intellectual property in Uruguay is deemed Uruguayan sourced.

Rental Income

Rental income from property situated in Uruguay is deemed Uruguayan sourced.

Service Fees

Service fees paid to a non-resident are deemed Uruguayan sourced if any of the following conditions are met:

  • The services are rendered within Uruguay; or
  • The services are rendered outside Uruguay for Uruguayan residents by non-residents or for earning income effectively subject to Uruguayan tax.

Digital Supplies

Effective 1 January 2018, income derived from the following activities provided digitally is deemed Uruguayan sourced:

  • Supply of audio-visual services;and
  • Supply of mediation and intermediation services(such as Uber or Airbnb).

Audio-visual services include:

  • Production, distribution and intermediation of motion films and other audio-visual transmissions (including those broadcasted via the internet);
  • Technological platforms;
  • Software applications; and
  • Other similar transmission media.

Mediation or intermediation services are defined as:

  • Services that are automated, require minimum human intervention, and are not feasible without information technologies; and
  • Services that imply direct or indirect interaction between the supply and the demand of the service being provided.

Income derived from the digital supply of audio-visual servicesis deemed entirely Uruguayan sourced when the user of the service is located in Uruguay. Income derived from the digital supply of mediation and intermediation services provided through the internet, technology platforms, apps, or similar means,is deemed entirely Uruguayan sourced when both the acquirer and user of the service are located in Uruguay, and 50% Uruguayan sourced if either the acquirer or the user are located outside Uruguay.

For this purpose, the user of a service is deemed to be located in Uruguay if the IP address of the device displaying the content, or the billing address, is in Uruguay. If neither can be confirmed, the user is deemed to be located in Uruguay if the payment is made from Uruguay via a bank transfer, credit card, etc.

Certain legal entities are regarded as withholding agents (e.g., Uruguayan corporate income taxpayers, state and local governments and others) responsible for withholding tax or VAT (see Sec. 8.2.2. and 11.2. respectively)on payments or credits for audio-visual services starting 1 July 2018.