Transfer pricing in Uruguay at a glance
|Regulation Type||National regulations|
|Are there specific transfer pricing regulations?||Yes|
|Submission deadline upon request||N/A|
|Annual update required||(No)|
|Official language requirements||Spanish|
|Potential impact of penalties||N/A|
Uruguay tax law
Rules for transfer pricing in Uruguay are based upon:
- Chapter VII Income Tax Act
- Decree 56/009
- Decree 329/009
- Dirección General Impositiva (DGI) resolution 2084/009
- DGI resolution 2089/009
- DGI resolution 818/010
- DGI resolution 819/010
- DGI resolution 745/011
Rules for transfer pricing in Uruguay are not based on the OECD Transfer Pricing Guidelines and nowhere in the Uruguay tax law a reference to the OECD can be found.
Accepted methods are:
- the comparable uncontrolled price method
- the resale price method
- the cost plus method
- the profit split method
- the transactional net margin method
- a special method for commodities
Priority of methods
Rules for transfer pricing in Uruguay prescribe that the best method should be used. However, in the case of commodities, the special method should be used.
Information that should be included in the documentation:
Those taxpayers who are obliged to prepare documentation should prepare a full transfer pricing study, meaning that the documentation should include an company overview, an industry analysis and an economic analysis.
Rules for transfer pricing in Uruguay prescribe that all documentation should be submitted in Spanish.
Requirements to prepare documentation annually
Only for some taxpayers it is obliged to update the documentation annually. Companies with a total amount transactions exceeding USD 50 million are required to prepare documentation and submit it annually. The deadline for these companies is the ninth-month after years-end.
Submission deadline upon request by tax authorities
Advance Pricing Agreements
In Uruguay it is possible to obtain an Advance Pricing Agreement (APA).
The term for which an APA can be agreed upon in Uruguay cannot exceed a period of three years.
Rules for transfer pricing in Uruguay do not provide for any specific transfer pricing documentation. This means that ordinary tax penalties apply.