Global Mobility Tax Insight
Summary
On September 11th, the Uruguayan congress passed Law 20.351, approving the Agreement between the USA and Uruguay for the Exchange of Information relating to Taxes (AEIT), which was subscribed between both countries on October 24th, 2023.
The AEIT establishes on article 14 that it will enter into force one month from the date of receipt of Uruguay’s written notification to the USA that Uruguay has completed its necessary internal procedures for entry into force of this Agreement.
It is established that the provisions of this agreement shall have effect for requests made on or after the date of entry into force:
(i)For criminal tax matters, without regard to the taxable period to which the requests relate; and
(ii)For all other requests, with regard to taxable periods that begin on or after the date of entry into force, or where there is no taxable period, to charges to tax that arise on or after the date of entry into force.
Based on the above, this agreement will come into force one month after the receipt of Uruguay’s notification to the USA informing that the Law approving this AEIT has been passed.
The detail
The AEIT refers to the possibility for countries to exchange information that is foreseeably relevant to the tax administration, and in some cases help each other in the determination, assessment and collection of taxes.
However, different from Double Tax Agreements, this AEIT does not include a mechanism to avoid double taxation.
The exchange of information will occur if the information is foreseeably relevant to the determination, assessment and collection of taxes, the recovery and enforcement of tax claims, or the investigation or prosecution of tax matters. Information shall be treated as confidential.
The AEIT shall apply to the following taxes imposed by the Parties:
In the case of the United States of America:
In the case of Uruguay:
The following levels of cooperation are established in this agreement:
(i) Exchange of Information upon request.
(ii) Automatic Exchange of Information.
(iii) Spontaneous Exchange of Information.
(iv) Tax Examinations Abroad
(v) Mutual Agreement Procedure.
(vi) Mutual Assistance Procedure.
Contact us
For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:
Flávia Fernandes
Partner
Antonieta Rodríguez Mosquera
Senior Manager
Further information on Vialto Partners can be found here: www.vialtopartners.com
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