On June 26, 2017, the Executive branch issued regulations for Tax Transparency Law Nº 19,484, which requires corporations, trusts, investment funds and other corporate structures with presence in Uruguay to identify the final beneficiaries and accountholders of nominative shares to the Uruguay Central Bank (BCU). The regulations include, among other aspects, the terms, sanctions, formalities related to the obligation to transmit information on the final beneficiaries to the BCU.
Entities must provide the required information to the BCU by the following deadlines:
• For corporations with bearer shares, branches of foreign entities and certain non-resident entities: before September 29, 2017 (an extension is available in some cases).
• For corporations with nominative shares and other corporate and regulated entities: before June 29, 2018.
Entities that are constituted or that become subject to reporting obligations must present a sworn declaration to the BCU within 30 days from the date of the effective formalization of the entity or the entity’s regulated status. Any modification of data contained in the sworn declaration (except for the nominal share value variation that does not alter the share percentage) must be communicated to the BCU within 30 days of its verification. This term is extended to 90 days if the final beneficiaries or shareholders are not Uruguay residents.
The following sanctions will apply upon noncompliance with the reporting obligations:
a. If dividends or other distributions are paid, a fine of up to the distributed amount
b. Suspension of the tax registration certificate
c. Suspension of ability to register legal acts with General Registry (Dirección General de Registros)
d. Monetary fines, varying upon the entity’s size and the duration of noncompliance. Fines may reach up to approximately USD 25,000.