The Monotax subsidy in Uruguay
The MIDES social monotax is a unified tax benefit that replaces the special contributions related to social security in Uruguay and all national taxes in force, except for import taxes.
To enable the formalization before the Banco de Previsión Social (BPS) and the Dirección General Impositiva (DGI) of small enterprises, as well as of individuals in vulnerable households.
Access to the subsidy
Those who produce and market goods, and those who provide services, even when there is no combination of capital and labor, will be eligible for the subsidy, provided the following conditions are met:
- Those who live in households that are in a situation of vulnerability, provided that a) they integrate households that are below the poverty line according to INEI. or b) they integrate households in a situation of vulnerability, according to Article 2 of Law No. 18,227 of December 22, 2007 and its regulation.
- Produce or market goods or provide services, except for domestic services and the construction industry.
- Undertakings, both unipersonal and associative, provided that the latter do not exceed 5 persons as partners. Likewise, it must be taken into consideration that there will be an income limit in order to have access to this, so these should not exceed the following:
- In case of sole proprietorships: 60% of the limit established in literal E) of Art. 52 Title 4: 183,000 Indexed Units (UI).
- In the case of partnerships: 100% of the amount established in the aforementioned paragraph E): 305,000 UI.
It should be noted that in order to be a MIDES Social Monotributor it will not be an impediment to have a job or to collect a pension.
Benefits of the MIDES Social Monotax
The following benefits will be available to those who are eligible for this single taxpayer status:
- Access to social security benefits, retirement or health insurance.
- Contributions will only be paid when you have a job.
- They will be able to sell to private companies, as well as to the State.
- The payment is made progressively, with 25% during the first twelve months of registered activity, 50% in the following 12 months and 75% in the third twelve months.
How to access the MIDES Social Monotax
In order to start the procedure, you must go to the website of the Ministry of Social Development, and once you have done so, you must register with the BPS-DGI.
Social Monotax MIDES and COVID-19
It should be noted that due to the effects of COVID-19 and the Sanitary Emergency, during 2020, the National Development Agency granted the owners of sole proprietorships or partners of partnerships, registered in the MIDES Social Monotribute regime, a subsidy of $6,779.00.