The transfer pricing regime in Uruguay is regulated in Chapter VII, Title IV, of the 1996 Ordinance and amendments thereto. Also, in 2017, the Master File and Country-by-Country Report (CbC Report) were incorporated to such legislation, by means of Law N°19484, in order to be filed by certain taxpayers.
The purpose of this article is to provide information on the main aspects of the formal obligation to file a Transfer Pricing Information Affidavit.
Scope of Application of Transfer Pricing in Uruguay
The following taxpayers are subject to transfer pricing rules:
- Taxpayers that carry out transactions with related entities, from abroad.
- Taxpayers who obtain income for personal services, without a relationship of dependence reached by the Tax on Income from Economic Activities with respect to related entities abroad.
- Those who carry out operations with entities domiciled, incorporated, resident in countries of low or no taxation or that are benefited by a tax regime of low or no taxation. Also, operations with entities operating in customs exclaves are included in this section.
Transfer Pricing Affidavit
Taxpayers who meet any of the following conditions are obliged to file the transfer pricing affidavit:
- They belong to the Large Taxpayers Division.
- They carry out transactions subject to the transfer pricing regime for an amount exceeding UI 50,000,000 (fifty million indexed units) in the corresponding tax period. Exception is made for transactions carried out by free zone users according to Law No. 15.921, provided that they are not taxed by IRAE.
- Those taxpayers who have been notified by the DGI.
Form and Deadline
The informative affidavit shall be filed before the DGI by means of Form N°3001. As regards the deadline, it must be filed up to the ninth month as from the closing of the corresponding fiscal year.
Pursuant to Article 46 of Title IV, bis, of the 1996 Regulations, specific penalties are established for non-compliance with transfer pricing rules. Thus, failure to comply with the formal obligations in this matter will be sanctioned in a graduated manner, according to article 100 of the Tax Code of Uruguay, under the fine regime of the fourth paragraph of article 469 of Law No. 17,930, in the wording of article 68 of Law No. 18,083.
The aforementioned article establishes a fine which may amount to up to one thousand times the maximum fine for contravention, established in article 95 of the Tax Code, which ranges from $480,000 to $8,970,000.