URUGUAY AS AN OFFSHORE CENTER. Why Uruguay? Main Characteristics of Uruguayan Corporations Corporations (SA) Free Zone Corporations (SAZF) Services Provided.

Presentation on theme: "URUGUAY AS AN OFFSHORE CENTER. Why Uruguay? Main Characteristics of Uruguayan Corporations Corporations (SA) Free Zone Corporations (SAZF) Services Provided."— Presentation transcript:

1 URUGUAY AS AN OFFSHORE CENTER

2 Why Uruguay? Main Characteristics of Uruguayan Corporations Corporations (SA) Free Zone Corporations (SAZF) Services Provided

3 WHY URUGUAY? “Switzerland” of America Social and Political Stability Between Argentine and Brazil Population with high cultural level Competitive costs: salaries, etc.

4 WHY URUGUAY? Total freedom to move and exchange funds Bank Secrecy Income tax on individuals, only on Uruguayan income. No restrictions to foreign investment and repatriation Good financial, communications and transport systems.

5 MAIN CHARACTERISTICS OF URUGUAYAN CORPORATIONS Applicable to SA AND SAZF Bearer shares: total anonymity of shareholders. Can have only one shareholder with no liability. Directors: Uruguayan or Foreigners; resident or not; shareholders or not. Can have board of directors with only one member. We can act as shareholders and directors in specific situations.

6 CORPORATION (SA) Activity: Invest outside of Uruguay in securities or real estate. Commercial activities outside of Uruguay. Render services outside of Uruguay. Can have bank account in Uruguay.

7 CORPORATION (SA) MAIN USES Trading Operations as intermediary. Collections and Payments Abroad. Treasury Centers for the Region. Owner of trademark or patent. Investments and loans. Commissions for sales or services.

8 CORPORATION (SA) TAXES Net Worth Tax: levied only on assets in Uruguay at Fiscal Year End. Rate 1,5%. Income Tax: levied only on income obtained in Uruguay. Rate: 25% Tax on profits distribution: levied only if profits are from income obtained in Uruguay. Rate: 7% Control Tax on Corporations: U$S 500 annually aprox.

9 CORPORATION (SA) TAXES Special Regime for International Trading Operations of Goods or Services Income Tax Rate: 0,75% levied on the difference between the buying and selling price and 0,21% levied on profits distributed.

10 EXAMPLE OF USE Exporter SA Importer Intermediary in International Trade Operation Goods/Services 100 Price / Benefit 100 / 20 ExporterImporter Goods/Serv 80Goods/Serv 100 Price 100 Price 80 Benefit 20

11 EXAMPLE OF USE Licensor Trademark SA Licensee Trademark Owner of trademark, patent or other intellectual property rights Trademark Royalty 100 Licensor Trademark Licensee Trademark Royalty 100 Royalty Benefit 100

12 FREE ZONE CORPORATION (SAZF) SAZF: Total exemption of taxes, import/export duties. Must be direct or indirect user. FREE ZONE: Areas designed for industrial, commercial and service activities. Regime guaranteed by Uruguayan State.

13 FREE ZONE CORPORATION (SAZF) MAIN ACTIVITIES Distribution Centers Call Centers Shared Services Financial Services Professional Services Biotechnology Software.

14 SERVICES PROVIDED Start Up Support Starting the entity selected Amendmet of Articles of Incorporation Administration of the corporation Accouting and taxes. Board of directors and shareholders meetings. Filing and payment of taxes.

15 Cerrito 507 Piso 5 Montevideo, Uruguay Contact: Dr. Luis Lapique Tel: +598(2) 916-6513 E-mail: info@lsabogados.com.uy