6- Corporate Taxation issues

We will refer to the taxes that would apply to the activities developed in Uruguay by the subcontractor company if it does not obtain the exemptions as Free Zone User.

Corporate Income Tax (Impuesto a las Rentas de la Industria y Comercio- IRAE)

The Corporate Income Tax (IRAE) is an annual tax levied at the rate of 25% on net Uruguayan source of income obtained from economic activities of any nature carried out in Uruguay.

Uruguayan source is defined as that obtained from activities performed, property located or rights used in Uruguay.

All commercial companies and permanent establishments of foreign business entities are subject to this tax on their Uruguayan source of income.

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