Uruguay, Japan sign agreement to eliminate double taxation

This is a machine translation of the original press release published in Spanish

STATEMENT by the Ministry of Economy and Finance of Uruguay

September 13, 2019

Together with the Agreement for the Liberalization, Promotion and Protection of Investments, this instrument is of special relevance considering that it is the third world power in economic matters, and one of the first in terms of technological innovation and communications.

It is important to specify that Japan already has significant investments in Uruguay and the region, and it is expected that as of the entry into force of the agreement said trend will increase substantially.

These types of agreements have the objective of establishing the distribution of tax powers among the contracting States, to tax those income from operations that involve at least one resident of one of those States.

In the absence of such agreements, double taxation cases could be verified, which makes it difficult not only to attract investments but also to trade relations between countries.

Its content responds to the most recent technical recommendations and international standards, emanating from multilateral organizations that are experts in the field, as well as those from the BEPS Project (Erosion of the Base and Offshoring of Benefits) implemented through the Organization for Cooperation and Cooperation. Economic Development (OECD).