Employ Candidates Compliantly in Uruguay

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  1. Overview: Uruguay
  2. Global HR Compliance
  3. Global PEO and payroll
  4. Work permit for hiring expats via PEO
  5. Expand without a company set up
  6. Contractor vs. employee: which is better?
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Global PEO and Payroll in Uruguay

Getting your business up-and-running in Uruguay can be challenging, especially if you do not speak the native language. Establishing your own business entity in Uruguay is an option to be considered as you expand abroad. But before you invest valuable resources in setting up business in Uruguay, you should be fully aware of the risks involved.

Acumen’s Global PEO and Payroll solution was designed especially for companies like yours, to smooth the way for quick, easy and risk-free business operations in Uruguay, without having to establish a legal business entity.

Acumen International – Your Professional Employer Organization in Uruguay

Navigating the Uruguayan legal system and adhering to regulations governing employment and taxation can be challenging for businesses, especially if you are not a native Uruguayan speaker. Partnering with Acumen International as a global Professional Employer organization (PEO) provides you with the local knowledge and support you need to conduct business in Uruguay without concern for legal and compliance risks.

Whether you represent international client companies or you are taking your own business operations abroad, Acumen International’s Global PEO and payroll service allows you to hire and payroll local and expat employees in Uruguay. With Acumen in your corner, you can quickly and easily onboard and compensate your employees without risk of legal repercussions.

International Global Payroll and Taxation in Uruguay

Employment related taxes

Individual income tax is levied on income obtained by resident and non-resident individuals. The source principle for levying taxes includes income derived from activities developed in, property located in, or rights economically used within the Uruguayan territory. However, there are specific cases where (under certain conditions) income generated outside Uruguay is subject to tax.

Earned income stemming from work (i.e. wages, salaries, etc.) is subject to progressive rates ranging. As only a few expenses are allowed as deductions (such as social security contributions and a notional amount corresponding to education, feeding, health, and housing of dependent underage children), almost the whole gross income is subject to this tax.

Payroll Cycle in Uruguay

Payment should be made to the:

  • Monthly worker: within the first 5 business days, no later than the first 10 calendar days of the following month
  • Fortnight worker: within 5 business days
  • Weekly worker: by the end of the relevant week.

Non-payroll taxes in Uruguay

Uruguayan VAT is levied at a general rate of 22% on the provision of services and on the circulation of goods within the limits of the Uruguayan territory. The import of goods and value-added in regard to the construction of immovable assets are also within the scope of this tax. VAT requires monthly payments and may require monthly or annual tax returns, depending on the qualification of the taxpayer.

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How Acumen’s International PEO and Payroll Service can Benefit Your Business in Uruguay

Compensating your local and expat workforce in Uruguay and closely adhering to Uruguayan taxation requirements can divert your attention and resources from activities that help your business grow. A reliable global employment solution like Acumen’s Global PEO and Payroll service can take a substantial burden off your shoulders so you can focus on running your company.

Outsourcing the administrative and compliance tasks involved in employee payroll is one approach, but we have a better solution. Acumen International offers a global PEO and payroll solution that goes beyond outsourcing. We hire and compensate your global workforce on your behalf, and take care of all the details of payroll while ensuring full compliance with Uruguayan labor and taxation laws.

It is important to note that Acumen does not provide international global payroll services as a standalone solution, but only as a part of our global PEO and Payroll solution.

Our comprehensive global PEO and payroll services are just some of the benefits of partnering with Acumen International. We make it easy for you to achieve your business goals in Uruguay by officially employing and compensating your best selected global talent – both locals and expats – without concerns for legal and compliance risks faced by global employers.

Disclaimer: Any of the above information is subject to changes imposed by Uruguayan laws. To get the latest updates on taxation in Uruguay and in 190 countries worldwide, contact Acumen’s team of global employment experts.

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