Ceasing your tax residency in Uruguay can be a meticulous process, but with the right steps, you can navigate it smoothly and efficiently. Follow this comprehensive guide to ensure you meet all legal requirements and properly formalize your change of residency status.
Step 1: Determine Eligibility
Before proceeding, confirm that you meet the conditions to cease tax residency. According to Uruguayan law, you need to prove that you are no longer residing in the country and that you have established residency in another jurisdiction. This involves demonstrating that you have been physically present outside of Uruguay for more than 183 days in a calendar year or that your center of vital interests has shifted to another country.
Step 2: Gather Necessary Documentation
Collect all relevant documents that support your claim of non-residency. This includes proof of residence in another country, such as a residency certificate, rental agreements, employment contracts, and utility bills. Additionally, gather travel records, such as passport stamps and flight tickets, to substantiate your physical presence outside of Uruguay.
Step 3: Notify the Uruguayan Tax Authority (DGI)
Formally notify the Dirección General Impositiva (DGI) of your intention to cease tax residency. This involves submitting a written request along with the gathered documentation. The request should clearly state your reasons for ceasing tax residency and provide evidence to support your claim.
Step 4: Await Confirmation
Once you have submitted your request, the DGI will review your application and the provided documentation. This process may take several weeks. During this period, the tax authority may request additional information or clarification. It is crucial to respond promptly to any queries to avoid delays.
Step 5: Obtain Confirmation of Non-Residency
Upon successful review of your application, the DGI will issue a formal confirmation of your non-residency status. This document serves as official recognition that you are no longer a tax resident of Uruguay. Keep this confirmation for your records and for any future tax-related matters.
Legal References
- Article 6, Law No. 18,083 (Uruguayan Tax Code)
- Decree 149/007, Article 5
- Article 14, Law No. 16,736
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