URUGUAY – UNITED STATES OF AMERICA TAX INFORMATION EXCHANGE AGREEMENT
Last Friday, the Uruguayan Official Gazette published Law No. 20,351 which approves the Uruguay – United States of America Tax Information Exchange Agreement (“TIEA”) signed on October 24th, 2013.
We highlight the following aspects:
1.The competent authorities of both countries agree to assist each other by exchanging relevant tax information on the administration and application of their domestic legislation for determining, assessing, and collecting the following taxes:
- In the case of United States of America: (i) Federal Income Taxes; (ii) Federal employment and independent jobs – related taxes; (iii) Federal Taxes on inheritances and donations; (iv) Federal Consumption Taxes; and (v) any other federal tax established after the date this TIEA was signed.
- In the case of Uruguay: (i) Economic Activities Tax; (ii) Individuals Income Tax; (iii) Non-Residents Income Tax; (iv) Social Security Assistance Tax; (v) Wealth Tax; (vi) Value Added Tax; (vii) Specific Internal Tax; and (viii) any other national tax established after the date this TIEA was signed.
2. The TIEA does not oblige either party to provide information that is not in the possession of its authorities or under the control of persons within its territorial jurisdiction.
3. Any information that a Party receives must be treated as confidential and may only be communicated to persons or authorities for the purpose of fulfilling the objectives of the TIEA.
4. Automatic and spontaneous exchange of information Mechanism: the competent authorities may automatically transmit information to each other. They must determine the information to be exchanged and the procedures to be used for such a purpose as well as for exchanging information that one Party’s competent authority may spontaneously transmit to the other that is relevant to fulfilling the goals of the TIEA.
5. The competent authority of one Party must provide information upon request of the competent authority of the other. This information shall be exchanged regardless of whether the requested Party needs the information for its tax purposes or whether the conduct under investigation would constitute an offense under the laws of the requested Party if the conduct had occurred in the requested Party’s jurisdiction.
Each Party shall ensure that its competent authority has the authority to obtain and provide information held by banks, as well as information relating to the ownership of all types of companies and persons comprising a chain of ownership, except that relating to listed companies or investment funds or schemes, unless such information can be obtained without presenting difficulties for the requested Party.
6. The competent authority of the requested Party may refuse to provide assistance if: (i) the request is not made in line with the TIEA, (2) all available means have not been exhausted to obtain the information, or (3) disclosure of the requested information would be contrary to public policy.
7. Tax examinations abroad: One Party may allow representatives of the other Party to interview individuals and examine records in its territory with the written consent of the persons concerned and prior notice of the time and place of the meeting. At the request of the competent authority of one Party, the competent authority of the other Party may allow representatives of the first-mentioned Party to be present during part of a tax examination. The competent authority of the Party conducting the examination shall, as soon as possible, provide notice of the examination’s time and place, and all decisions shall be made by this Party.