Uruguay Tax Agency Posts Consultation Clarifying Tax Treatment of Reimbursed Retirement Fund Contributions Following Dissolution

The Uruguayan General Directorate of Taxation Nov. 14 posted Consultation No. 6744, clarifying the tax treatment of reimbursed contributions following a retirement fund’s dissolution. The taxpayer, a medical professional, was reimbursed for voluntary contributions to a retirement fund that subsequently dissolved, and sought clarification regarding the tax implications. The consultation clarifies that the taxpayer must: 1) exclude the returned amounts for social security assistance tax (IASS) purposes; 2) not declare the contributions as individual income tax (IRPF) category income, because there was no direct employer relationship; 3) declare the income as a return on movable capital, under IRPF category I; ...