COVID-19 Uruguay Solidarity Fund
On April 24, 2020, the Executive Power (EP) issued Decree 133/020, regulating Law 19,874, which created the COVID-19 Solidarity Fund, within the framework of the health emergency that the country is experiencing.
Objective
The purpose of the regulation is to implement the operation of the fund, as well as the procedures through which it will be administered. It also sets forth the regulations that make possible the application of the tax created for the fund and of the additional tax to the Social Security Assistance Tax (IASS).
Scope
The COVID-19 Health Emergency Tax is a monthly tax and is levied in full on remunerations and nominal benefits, in cash or in kind, derived from personal services rendered to the State, Departmental Governments, Autonomous Entities and Decentralized Services, non-state public law entities and state-owned entities in which the State or any public entity holds a majority interest, regardless of the legal nature of the dependency relationship (the complementary annual salary and, if applicable, the vacation salary are excluded from the tax). The tax will be paid to the tax collection agencies by means of withholding. The nominal taxable income is from $ 120,000, to which the rates are applied progressively, ranging from 5% to 20%, according to the following table:
|
URUGUAYAN PESOS |
||
|
More than |
Up to | Rate |
| 0 | 120,000 |
0% |
|
120,001 |
130,000 | 5% |
| 130,001 | 150,000 |
10% |
|
150,001 |
180,000 | 15% |
| 180,001 |
20% |
|
This tax created will not be deductible for the determination of personal income tax.
Entities and individuals who are subject to this tax
- Officials of the State, Departmental Governments, Autonomous Entities, Decentralized Services and other entities included in Articles 220 and 221 of the Constitution of the Republic.
- Those who render personal services, in or out of a dependency relationship, in non-State public law persons and State-owned entities in which the State or any public entity has a majority shareholding (Article 7, Decree 133/020).
- Those who maintain personal service contracts with the State, Departmental Governments, Autonomous Entities, Decentralized Services and other entities included in Articles 220 and 221 of the Constitution of the Republic, including work and service leasing contracts, motivated by temporary ties.
- President and Vice President of the Republic, Legislators, Ministers and Undersecretaries, Departmental Intendants, and other political officials and officials of particular trust.
- Those who receive subsidies granted by law for having occupied political positions or positions of particular trust.
- Those who perform tasks abroad or represent the country in Binational Commissions.
Health personnel who participate directly or indirectly in the assistance process (medical and non-medical workers) and who as a result of the tasks they perform are exposed to the contagion of SARSCoV2, which causes the COVID-19 disease, are excluded. Each entity in which such services are rendered will inform the General Tax Directorate (DGI) of the personnel included in the exclusion.
Additional to the Social Security Assistance Tax (IASS)
The additional to the Social Security Assistance Tax (IASS) is levied on the total income corresponding to retirements, pensions, military and police retirements, and similar passivity benefits, provided by public, parastatal and private institutions.
The referred additional tax will be levied monthly in the months of April and May 2020, and if applicable, in the months of June and July 2020 if so provided by the Executive Power, according to the following scale of monthly income and corresponding rates:
|
URUGUAYAN PESOS |
||
|
More than |
Up to | Rate |
| 0 | 120,000 |
0% |
|
120,001 |
130,000 | 5% |
| 130,001 | 150,000 |
10% |
|
150,001 |
180,000 | 15% |
| 180,001 |
20% |
|
In no case may the amount of liquid retirements, pensions, military or police retirements, or similar passivity benefits, after deducting the contribution to the corresponding health system, the Social Security Assistance Tax and the tax to be created, be less than the greater of the following amounts:
- $ 100,000 (one hundred thousand pesos) liquid monthly.
- The liquid amount resulting from the highest income of the previous range according to the liquidation of an individual without dependents or other dependents for the purpose of personal contributions to the corresponding health system.
