Tax Havens under the Radar
Tax Havens under the Radar: DGI's List for 2023
Every year, the General Tax Directorate (DGI) of Uruguay updates its list of countries that Uruguayan businesses must pay extra taxes when operating in. The updated list for 2023 now includes 33 countries, eliminating some jurisdictions and adding new ones. These countries are known as "tax havens" and are often used to create offshore companies or societies in order to evade taxes.
The DGI's list involves countries with low or no taxation, also known as BONT countries. To discourage tax evasion, the government agency implements tax regimes with a higher tax burden on IRAE, IRPF, IRNR, and Patrimony, for taxpayers who operate in tax havens. In Decree No. 40/017, the government has defined the conditions to determine when a jurisdiction is included on the DGI list, as some BONT countries have less than 12% of real taxes and Uruguay does not have an information exchange agreement.
The Countries Included on the DGI's List
Puerto Rico, Angola, Yemen, Honduras, Fiji, Falkland Islands, Jordan, Virgin Islands, United States (USA), Guyana, and Christmas Island are among the countries on the DGI's list. Also included are Kiribati, Pacific Islands, Swaziland, Palau, Solomon Islands, Labuan, Liberia, Niue, French Polynesia, and the Kingdom of Tonga. The list also includes Ascension Island, Guam, Cocos Island (Keeling Island), St. Helena, Norfolk Island, Pitcairn Island, St. Maarten, St. Pierre and Miquelon, Svalbard, Tokelau, Tristan da Cunha, Tuvalu, and Djibouti (Yibuti). Three countries were dropped from the 2022 list: Jamaica, Maldives, and the Sultanate of Oman.
Implications of Operating in these Jurisdictions
It is important to note that companies operating in these countries may be subject to higher taxes, as Uruguay seeks to eliminate offshore societies or companies created in these territories in order to avoid paying taxes. Therefore, businesses should be aware of the countries on the DGI's list and the implications of operating in these jurisdictions.
Contact Us for Further Information
Matwal Solutions is a company that complies with the strictest legality of the jurisdictions where they operate. For more information on their services and rates, you can contact us.