The Uruguayan Senate approved the income tax treaty, which covers key taxes in both countries and sets withholding tax rates for dividends, Interest, and royalties. 

RF Report

The Uruguayan Senate approved the income tax treaty with Qatar on 7 July 2026. The treaty applies to Qatari income tax and corporate tax. On the Uruguayan side, it covers income tax on economic activities, personal income tax, non-resident income tax, and social security assistance tax.

The agreement sets Withholding Tax rates at 5% on Dividends where the beneficial owner is a company or government institution, otherwise 7%. Interest is taxed at 10%. Royalties are subject to rates of 0%, 5%, or 10%, while Fees for Technical Services (managerial, technical, or consultancy) are taxed at 0% or 10%, depending on the circumstances.

The agreement also allows the other Contracting State to tax specified Capital Gains, including gains from the alienation of immovable property, movable property of a permanent establishment, and certain shares or comparable interests, subject to the 365-day, 50%, and 10% ownership thresholds, with an exception for merger or division transactions,

The Protocol will enter into force on the first day of the third month following the exchange of the instruments of ratification and will apply from 1 January of the year after it enters into force.

The treaty will enter into force 15 days after the ratification instruments are exchanged and will apply from 1 January of the year following its entry into force.