Uruguay's Free Trade Zones

Uruguay offers Offshore Companies:

Known as Sociedades Anónimas, SAs, whose foreign assets, and income generated abroad, are untaxed And it also offers Free Trade Zones:

Geographic areas in which companies have local operations, and are exempted them from all taxes, even import duties Uruguay's Free Trade Zones

Free Trade Zones (FTZs) are specific geographic areas with a special regulatory status: Companies that operate within them face no taxation Uruguay has a dozen FTZs to choose from, in different parts of the country (near airports, ports, inland, or in Montevideo's business district) Are there any special requirements?

The only requirement that a FTZ user company has, is that 75% of its workforce must be Uruguayan nationals (although exceptions can be obtained, lowering the requirement) The company's directors/principals do not need to be Uruguayan nationals The Key Advantage of FTZs

When a company establishes itself in a FTZ, it faces no Uruguayan taxes, except social security taxes on its employees (like any employer). Thus, the company will not pay: Import taxes or duties Corporate Income Tax (IRAE) Dividends distribution tax Net Worth Tax (IP) Value Added Tax (VAT) on goods or services Types of Possible Activities in FTZs

Companies established in a FTZ can engage in any type of commercial or industrial activity. Thus, companies may: Have logistics, merchandise handling and storage operations Sell services, globally (including financial services, insurance and professional services) Manufacture goods Examples of Operations in FTZs

Some common uses of Uruguay's FTZs, and global companies that operate in the FTZs: Financial services: Merrill Lynch, RBC, BBVA, Citigroup, Raymond James Call Centers: Sabre, RCI IT: Tata Consulting Services, Veriphone Distribution: Epson, Ricoh, Lexmark, Sony, SKF Setting up a FTZ Company

Simple, clear, process: The Company chooses the FTZ which best fits its needs in terms of infrastructure, location, etc. Incorporate a fully-owned...