Uruguay and UK tax treaty
Pub Date
Overseas tax issues

HMRC has recently published a new Double Taxation Convention (DTC) that has been signed with Uruguay. The agreement will be effective in the UK for Income Tax, Capital Gains Tax and Corporation Tax and for similar Uruguayan taxes.

The new convention largely incorporates the latest standards on business profits, exchange of information and assistance in collection of taxes. The agreement follows the provisions of the latest Organisation for Economic Co-operation and Development (OECD) Model Double Taxation Convention. The convention also includes special rules relating to royalty payments and dividends.

The DTC with Uruguay was signed on 24 February 2016 but has not yet entered into force. This will happen once both countries have completed their respective legislative procedures and exchanged diplomatic notes.