Uruguay sets certificate procedure for dividend withholding exemption

The resolution was signed on 29 October and implements the conditional exemption in Article 23(C)(ii) of Decree No. 149/007. It does not create a general exemption for every foreign shareholder. Under the current decree, the relevant dividends or profits are outside the exemption where they are taxed in the beneficiary’s residence jurisdiction and that jurisdiction grants a credit for Uruguayan tax.^[1][2]

Withholding remains the default

A designated withholding agent must withhold IRNR unless the taxpayer supplies a certificate from the competent state authority in the beneficiary’s jurisdiction confirming that the jurisdiction does not tax the dividends or profits, or taxes them but grants no foreign tax credit for the tax withheld in Uruguay. If that authority does not issue such certificates, DGI will accept certification from a private audit firm of recognised standing.^[1]

The certificate must be translated into Spanish and legalised. Resolution No. 2,439/2026 says it applies for the whole calendar year. The evidence therefore needs to be in place when the payer decides whether to withhold on a payment or crediting of dividends or profits. Without compliant evidence, withholding applies. The resolution does not specify a separate transition deadline or change an IRNR rate.^[1]

Practical effect for groups

Multinational groups with Uruguayan subsidiaries distributing profits to non-resident parents should map recipients by residence jurisdiction, confirm the local taxation and foreign-credit treatment, and coordinate certification, translation and legalisation before the distribution. The resolution is an evidence procedure: it does not alter treaty entitlement or establish the recipient’s residence-country tax result. Because the certificate applies for the calendar year, groups should refresh the analysis and evidence for later years rather than assume indefinite validity.^[1][2]