Tax schemes: taxes controlled by the scribe

This article refers to the taxes that the Notary Public must control in the exercise of his profession at the time of the sale of a property. Especially immovable.

Taxes that without their controller the corresponding deed cannot be authorized, since the Property Registry Real Estate Section requires the controller thereof prior to registration. Registration that in Uruguay is declarative in nature, since the transfer of the domain operates at the time of granting by the parties and the immediate authorization by the Notary Public, immediately thereafter. What generates the inscription is the publicity and with it the erga omnes effect in front of third parties.

In the case of the Tax on Income from Economic Activities, this is controlled in the cases of alienation of shares of corporations, SRL shares and commercial establishments.

Each of the taxes to be controlled are listed below and their characteristics are detailed.

To conclude, the activity to be carried out by the Notary Public for the prevention of money laundering in his capacity as withholding agent of the Value Added Tax and the Property Transfer Tax, and regarding the comptroller of being up to date with the other taxes.

TRIBUTES

A) TAXES THAT THE SCRIBE CONTROLLES THAT ARE UP TO DATE IN PROPERTY SALES

1) REAL ESTATE CONTRIBUTION:

It is a departmental tax since it falls on the source of resources of the Departmental Governments established in Article 297 of the Constitution.

The nineteen Departmental Governments have created this tax since it is the one that collects the most.

It is a direct tax, since the taxable capacity is manifested immediately and directly, through the ownership or possession of real estate wealth under any title; it is also a real tax as opposed to personal because it taxes the taxable capacity in each case.

Material or Objective Aspect: The event that generates the tax is the ownership or possession of a real property located in the national territory on January 1 of each year (permanent event).

Temporal Aspect: It is defined by the Departmental Governments, and these following the old Real Estate Contribution tax, take as date January 1. It is as if a picture of the situation was taken that day, we only attend to who is the owner or possessor to date, since it is on that day that the generating event is configured, which is permanent.

Spatial Aspect: We can say that the generating event is configured whenever the property is located within the department.

Subjective Aspect: We can say that the active subject is the Departmental Government of the place where the property is located and the taxable subject is the owner or possessor of the property.

Calculation Base: It is set by each Departmental Government. In some municipalities, even Montevideo, they have a Departmental Cadastre and value the properties according to that Office. The Departmental Government is not obliged to adopt the National Cadastre. National Taxes take the Cadastre from the National Cadastre Directorate.

The regulations referring to the Real Estate Contribution tax and related to the notarial activity, are contained in Law number 9.328 of March 24, 1934, which in its Article 1 literal A, establishes that: “Notaries may not authorize any act that affect the real estate domain, without being previously accredited with the payment or exemption ticket and the respective registration certificate when appropriate… ”;

and in Law number 1,421 of December 31, 1878, which regulates the notarial activity and in its Article 65 establishes that: “Notaries are prohibited from:… authorizing deeds of alienation of real estate that must pay direct tax (today Real Estate Contribution) without being shown the respective forms of having satisfied them, and must express in writing the number of the former. ”

The acting Clerk must record in the deed that the annual or first, second, third installment or real estate tax return was in sight, or whatever was required at the date of the contract. If the annual total has been paid, it can be prorated to the date of the contract and the buyer will have to reimburse the seller for the rest of the year.

Likewise, it is possible to act with an ease of payment agreement for delay in tribute, the Notary Public controlling the signing of the agreement and that it is being paid on time; In this case, you can calculate what remains to be paid according to the agreement and cancel it and, consequently, have the tax up-to-date, and / or keep the agreement in force and assume the buyer's payment, in this case the procedure must be carried out before the Respective intendant so that the novation by change of debtor is operated, since from this moment the debtor will become the acquirer of the property, ceasing to be the alienator.

The lack of control of said tax will make the Notary liable for joint and several liability, having to pay 20% of the amount owed

2) PRIMARY EDUCATION TAX:

GENERATOR FACT:

It was created by Law number 15,809, Article 636 of April 8, 1986, replaced by Article 430 of Law number 17,930 of December 19, 2005. “Establish an annual primary education tax that will be levied on urban real estate properties and suburban ”(exonerating rural property). It is the possession to any title of urban or suburban real estate located within the national territory, built or not.

It is a real, direct, national, ordinary and multiple rate tax (progressive by class).

It is considered configured at the beginning of each calendar year.

Spatial Aspect: It is given by the limit of the properties located in our country.

Subjective Aspect:

Taxpayer: Article 687 of Law number 15,809 establishes that: “The property owners, the owners, the promising buyers of the same with registered commitment and the usufructuaries will be taxpayers of this tax. ”

The debt will be borne by the holder of the aforementioned rights as of January 1 of each year.

Active Subject: Article 157 of Law number 16,002 of November 25, 1988 establishes that: “Article 643 of Law number 15,809 of April 8, 1986 is replaced by the following: Article 643: Tax collection will be in charge of the Primary Education Council. This Council will agree with the organizations that it deems convenient to collect the tax and, also, the commission that may correspond for that collection.

Settlement: The tax is settled at expired year, that is, if in 2011 we authorized the deed of sale, the seller will prove to be up-to-date with the same as in 2010. The Calculation Basis for its settlement is the real value assigned to the property by the General Directorate of the National Cadastre (Article 638 of Law number 15,809) as of December 2009.

Aliquots: They are progressive by class, ranging from 1.5 per thousand to 3 per thousand.

Payment term: it will be determined by the collecting subject for each year.

Place of payment: According to Article 643 of Law number 15,809, in the wording given by Article 157 of Law number 16,002 of November 25, 1988, in Montevideo it is collected by ANEP - CODICEN, whose Office is located at Avenida 18 de Julio number 2128.

This Office provides past debts and is where payment facilities are requested. This tax can also be paid at all ABITAB premises by simply providing the registration number.

Comptroller: Article 641 of Law number 15,809 imposes on the Clerk the obligation to control it, establishing that they may not authorize any sale of real estate without justifying the payment thereof or its exoneration, pursuant to the final part of Article 638 of Law number 15.809 and the provisions of Articles 5 and 69 of the Constitution regarding the ownership of real estate by Foreign Governments, Organizations

Internationals, cultural associations, etc.

Law 15,809 of April 8, 1986

Decree 395/92 of August 18, 1992

Material aspect: This tax is levied:

The net worth of the natural person, family nucleus and undivided successions. The equity of legal persons, for the proportional part of the shares issued to the bearer and to the legal entities incorporated abroad. Bank accounts with impersonal denomination..

The last two tax isolated manifestations of wealth.

Temporal aspect: it is fixed on December 31 of each year and for companies it can also be at the end of the year.

Subjective aspect:

Active Subject: Active subject the State, through the collecting agency DGI Passive Subject:

Natural person: those who have a net worth higher than the non-taxable minimum.

Family nucleus: (fiction of the law), made up of spouses who live together, who choose to settle the tax together, will be jointly liable for the payment of said tax (Article 2, Title 14 Ordered Text).

Undivided Succession: (another fiction of the law), as long as there is no declaration of heirs as of December 31 of each year.

Spatial aspect: Article 9 of the Tax Code applies, which regulates the Principle of Territoriality. Based on said Article, acts that refer to properties located in the national territory will be taxed.

Settlement: settlement is self-determination by the taxpayer.

Basis of calculation: Article 7 of Title 14 of the Ordered Text and Decree 600/88 of September 21, 1988 apply.

The tax is settled on the basis of the taxpayer's net worth in each fiscal year, individuals, families and undivided estates settle the tax as of December 31 of each year.

The patrimony is determined by the difference of assets less fiscal liabilities and will include all the assets located, placed or used economically in the Republic.

Aliquots: Multiple rates, progressive (staggered and proportional).

Payment term: The same is for annual payment.

Comptroller: As established in Article 12 of Decree 600/88 dated September 21, 1888: “In the deeds that are granted in the operations of sale or encumbrance of real estate, the intervening Clerk must record that those who sell or they encumber said goods, they display the last affidavit required from the date of the deed, indicating the date of filing and payment of the tax. ”

In summary, if the transferor is a taxpayer, the authorizing Clerk must control the last sworn statement, form and receipt of payment or advance payment, if applicable.

If the transferor declared in the final declarations clause that he was not a taxpayer, the second subsection of said article governs in this case that it establishes: “In the event that the grantors declare that they are not a taxpayer, the acting Notary will record in the writing of what was expressed… ”

Comptroller Exception:

Deeds in fulfillment of Promises of Sale in installments, with a certain or proven date prior to April 30, 1965 (Law number 13,420 of November 26, 1965); only Real Estate Contribution is controlled.

Forced deed, in the cases of Article 31 of Law number 8,733 of June 17, 1931, only Real Estate Contribution is controlled.

Reciprocal mortgage, provided for in Article 6 of Decree-Law number 14,261 of Horizontal Property of September 3, 1974, only Contribution Real Estate is controlled.

Exemptions:

 Generic exemption for the case: It is established in article 69 of the Constitution of the Republic.

 Specific Exemption: Article 52 literal G Law 18083 and article 134 of law 12,802. (see page 58).

4) BANCO DE PREVISIÓN SOCIAL (BPS):

The Social Security Bank is an autonomous entity created by Article 195 of the 1967 Constitution, “… with the task of coordinating the state social security services and organizing social security… ”

Contributions for Personal Activity:

Generating fact: It is configured at the time of starting the activity (Article 24 of the Tax Code), therefore, the start of that activity implies mandatory affiliation; At that moment the company is born, whether it be a one-person, multi-person or corporate.

 Subjective aspect:

Active Subject: It is the State, through the collecting agency BPS

Taxpayer: It is any natural or legal person that carries out an activity covered by the BPS, that is, commercial, industrial or agricultural activity; Any person who performs any of these activities receives the corresponding benefit, but as consideration for the benefit they receive, they must make contributions to the BPS.

Certificates: BPS issues two types of certificates: common certificate and special certificate (Law number 16,170, effective from January 1, 1991 to date).

Both certificates have common characters: they are issued by ATYR, they accredit the tax situation of taxpayers, they enable for the acts provided by law in which they are required (Law number 16,170 Articles 663 and 664), they are valid for 180 calendar days as of the day following its issue (Law number 16,170 Articles 665), likewise, in both cases the validity can be suspended by ATYR.

On the other hand, both certificates differ in that: The common certificate enables the acts indicated in Article 663 of Law number 16,170, accredits the regular payment situation during its validity, and the same certificate can be used for several of the acts of Articles 663 of Law number 16,170. As the special certificate enables for the acts indicated in Article 664 of Law number 16,170, it certifies that no debts of any kind are recorded at the date of the act that motivates the request, and can only be used for the act for which is requested.

It should be borne in mind that, if the act involves alienation, the certificate is issued by the alienator, while, if the act is encumbered, it is issued by the encumbrant.

Process import permits. Receive benefits from exports. Distribute profits and present balances for authorization. Reform statutes or social contracts. Grant promises of alienation of real estate under horizontal property projected or under construction. Assign shares of limited liability companies and those corresponding to limited partners in limited partnerships. Alien and tax motor vehicles. Automotive garments are excepted when they are made in order to guarantee the payment of their price or balance of their price by the company that purchases it. Obtain credits from public or private institutions of the national financial system. ”

To totally or partially alienate or assign promises to alienate commercial, industrial or agricultural establishments, including the alienation of any of their lines or elements of production. To totally or partially alienate, assign promises of alienation, dissolve, liquidate, close, merge, absorb, spin off or transform sole proprietorships or commercial, industrial or agricultural companies, whatever the legal form adopted. Dispose of public and collective passenger transport vehicles for individual use or cargo transportation. Dispose or encumber real property or assign promises to dispose of said property with the exception of the situations provided for in article 10 of Regulatory Decree No. 951/75, which will be governed by number 9) of article 663 of this law.Alien or tax floating docks, aircraft or ships and other vessels, with the exception of those dedicated to sports activities. Grant agrarian or industrial pledge contracts, with the exception of those referring to vehicles included in number 8) of article 663 of this law. ”

Validity of the certificates: The validity of the special and common certificates is 180 calendar days from the day following their issue. However, the body may establish stricter terms and conditions for taxpayers who have outstanding debts or a history of default, as well as suspend the validity of the certificates issued, whenever the taxpayer falls behind in fulfilling his obligations.

BPS Comptroller: The name of the certificate must be controlled, that is, whether it is a common certificate or a special certificate; the name of the issuing office: BPS-ATYR; the number and date of issue of the certificate used; to which act accredits; and the taxpayer's declaration on its validity (according to Article 4 of Decree 152/91, which regulates Law number 16,170).

Those who carry out the acts and contracts referred to in Articles 663 and 664 of Law number 16,170, can prove that they are not contributors to the BPS by means of an affidavit, which is recorded in the respective instrument (Decree 152/91).

Cases in which certificate control is not required: Certificates are waived in the cases of alienation provided for in Articles 663 number 8 and 664 numbers 3 to 5 of Law number 16,170; in the following cases: 1) When the disposals are carried out by expropriation. 2) In the case of forced compliance with Law number 8,733. 3) In judicial, extrajudicial forced executions. 4) In the awards in favor of the BHU after frustrated auctions. 5) In the cases in which MEVIR is the acquirer of real estate not greater than fifteen hectares or when MEVIR disposes of its properties (Laws number 16,736 and 17,930 Article 346).

The reference cases provided for in Articles 663, number 8 and 664, numbers 3 to 5 of Law number 16,170 are: to dispose of and tax motor vehicles, except for garments when they are made in order to guarantee the payment or balance of their price by the company. to acquire it; alienate passenger transport vehicles for public use, both collective and individual, or cargo transportation; alienate or encumber real estate, or assign promises to alienate said property; alienate or tax floating docks, aircraft or ships and other vessels.

Responsibility of the Clerk: The importance of the BPS certificates is that if the Clerk authorizes any of the acts indicated in Articles 663 and 664 of Law number 16,170 without the corresponding certificates, he incurs joint and several liability with respect to all the taxpayer's debts disregard (Article 668, law 16,170). The same responsibility will also be incurred by the intervenors, professionals and the acting public officials. Contributions to the Social Security Bank for Construction:

Generating fact: Law number 13,893 of October 23, 1970 and its Regulatory Decree 160/71, established that from March 23, 1971, (effective date of the law), contributions should be made for construction, spare parts, reforms or demolitions. In 1975 Decree Law 14,411 was created, which was almost a repetition of Law number 13,893.

Subjective aspect:

Active Subject: In a first stage, the body in charge of registering and collecting was the Family Allowance Council, but then this function began to be fulfilled by the Social Security Bank to this day.

Taxpayers: Owners of real estate and holders of real or possessory rights over said assets and who have carried out constructions, reforms or demolitions after March 23, 1971 are bound by this law.

Certificates: The Social Security Bank issues a regular status certificate to those who are up to date with their contributions to the Construction Industry. This certificate must be required by the Clerk in case of transferring or mortgaging assets that are encumbered.

Responsibility: The credit for these contributions is taxed on the property where the work is carried out with real right in favor of the Social Security Bank. In case of transferring or mortgaging a property without the aforementioned certificate, if applicable, in addition to subsisting the collateral to which we referred and without prejudice to the joint and several liability between the transferor and the purchaser, the authorizing Notary will also be jointly and severally liable.

Exemptions: The following are exonerated:

The legal deeds, law 16,298, establishes that in the case of real estate with debt to the BPS, due to construction, it loses the real right that the property was taxed, therefore, it does not follow the property, leaving the previous owner as personal debtor. The deeds granted with the BHU, like the previous ones, are also exempt from these contributions, Law 16969. Disposals related to buildings under the horizontal property regime whose construction permit is prior to 12/11/75, pursuant to decree 608 / 79 with the wording given by decree 287/81.

Note: We do not control BPS for personal contributions, because the transferor is a non-profit civil society and therefore its activities are not covered by the Social Security Bank. And we do not control BPS for constructions because they are the same as before 1975.

5) SINGLE DEPARTMENTAL CERTIFICATE (CUD)

The Single Departmental Certificate was created by article 487 of law 17930 and regulated by Decree 502/07 of December 20, 2007, to strengthen the collection capacity of the Departmental Governments.

The taxpayers of the Income Tax of Economic Activities and those of the Tax on the Alienation of Agricultural Goods (article 2 of the Decree) who are also taxpayers of municipal taxes: Real Estate Tax and Patent of Rolled.

Article 487 (LAW 17930): “Create the Single Departmental Certificate that will be issued by the Intendancy corresponding to the request of the interested party, which will prove that he has no outstanding debts in the department.

Article 2 (Decree 502/007): “The Certificate will be required from taxable persons of the Tax on Income from Industry and Commerce (IRIC), the Tax on Income from Economic Activities (IRAE), or the Alienation Tax of Agricultural Goods (IMEBA) ”.

Taxpayer Taxpayers

Real Estate Contribution: I) Owners; II) Holders of any title; III) Promising Buyers with registered promise; and IV) Best Bidders in a judicially approved auction.

Rolling Patent: I) Owners; II) Registry holder in the Municipal Vehicle Registry; III) Holder of any title; IV) Best bidder in judicial auction or carried out by Public Organizations; V) Prominent buyer with commitment to certified firms before Notary Public; and VI) User of the motor vehicle with a use credit agreement (Leasing).

Who is obliged to demand and control them? (Article 3 of

Financial Institutions for granting and renewal of loans.

It must be requested in all the departments where the assets that are declared in the state of patrimonial responsibility are located (article 4 of the Decree).

Notaries and Public Registries for disposals and / or liens of real estate and automobiles (article 6 of the Decree), only in the department where the property is located

Article 3 or: “The Certificate will be mandatory by: A) financial intermediation institutions, for the granting or renewal of loans greater than UI 20,000 (twenty thousand indexed units); and B) the notaries public and the Public Registers involved in the disposals to any title of real estate and motor vehicles and in the mortgages of real estate and pledges of motor vehicles. The Single Departmental Certificate will not be required in the cases of ways of acquiring the domain by the Succession or Prescription mode ”.

Article 4 or: “The financial intermediation institutions will require the Certificates of the Departments where the real estate is located and the motor vehicles that are part of the patrimonial status presented by the applicant for the loan or renewal are registered.”

Place where you should request

In the place where the assets to be transferred or taxed are registered (article 6 of the Decree).

It is not required for successions or prescriptions.

Article 6 or: “In the case of disposals of real estate or vehicles, mortgages of real estate or pledges of vehicles, only the Certificate of the Department in which the property to be transferred or encumbered is registered will be required. The Registries of Property, Real Estate and Furniture sections may not definitively register documents related to acts of alienation to any title of real estate and motor vehicles and of mortgages of real estate and clothing of motor vehicles, without the presentation of the respective Certificate ”.

How to apply? (article 7 of the Decree)

In a form provided by the Intendances Attach a photocopy of the taxpayer's identity card If a representative requests it, he must also attach an authenticated photocopy of the enabling power with proof of its validity

Valued Municipal of replacements Professional stamp (article 71 subsection G law 17,738)

Article 7 or: “The Single Departmental Certificate must be requested accompanied by an affidavit, which will identify the taxpayer through the number of the Single Tax Registry (RUT) of the General Tax Directorate, detailing the real estate standards and the registration of the motor vehicles of which he is the owner in the Department. The sworn declaration form will be unique for all the Departmental Governments and must be provided by them. Said form will be approved by the Sector Commission of article 230 of the Constitution of the Republic ”.

Data to be provided by the applicant:

Full names and surnames DGN RUT number Registration number in BPS Incorporated address Telephone E-mail address Indication of the registration numbers of all assets (Real Estate and

Automotive) of which the applicant is a taxable person, who are

located or are registered in the department

Where is it requested and issued?

It will be processed and issued by the taxation section Taxpayers Management Service of the IMM

Information Expansion

The Municipality may request additional information on those aspects that it deems necessary referring to the documentation provided or to the correspondence of the information provided, with which it arises from the Municipal Registers.

False Statement

If any falsehood is verified in what is stated in the data or documentation provided, the Administration will proceed to make the criminal complaint in accordance with the provisions of articles 239 and 347 of the Uruguayan Penal Code.

Validity

1 year from issue (article 1 of the Decree)

Article 1: “ The Departmental Governments, at the request of an interested party, will issue the Single Departmental Certificate created by article 487 of Law No. 17,930, of December 19, 2005, which will be valid annually. Said Certificate must be requested in each Departmental Government where the taxpayer owns assets and will certify that he has no outstanding debts by way of real estate contribution and patent of vehicles, as well as by the fiscal sanctions related to these taxes, on the standards and vehicles declared of his property., in accordance with article 7 of this Decree; or that you have an agreed deadline to make the payment through an agreement ”.

B) TAXES RETAINED BY THE SCRIBAN AS A RETENTION AGENT IN PROPERTY SALES

6) VALUE ADDED TAX (VAT):

Material Aspect or Objective: VAT taxes three operations:

The internal circulation of goods for consideration, The provision of services for consideration, and The import of goods.

The operation that interests us at a professional level is the provision of services for consideration. Its definition is found in Article 2 literal B first part of Title 10 of the Ordered Text of the General Tax Directorate of 1996.

The concept of rendering services is residual, because it is any business for consideration that without constituting an alienation has as its cause the advantage or benefit of the consideration. Any business between two people for consideration that is not sale enters here. Some legal examples of service provision can be cited such as: leasing of things, leasing of services, leasing of works without delivery of materials, assignments of use of intangible assets, insurance and reinsurance, transportation of things and people, loans and financing, sureties and guarantees, brokerage activities.

The provision is required to be for consideration. The Civil Code defines what is an onerous contract saying that it is one in which there are reciprocal liens between both parties. GAMARRA, for its part, considers that an onerous contract is one in which the benefits of both parties are regarded as equivalent, focuses the notion of onerousness on equivalence.

This concept can be applied or not to VAT, and there are two fundamental positions at the doctrinal level: The first one held by Doctor JOSE LUIS SHAW, who considers that by applying Article 6 of the Tax Code, the established onerousness concept should be taken in the Civil Code with the notion of equivalence. The second is the position of Doctor BLANCO, who maintains that the definition of the Civil Code should not be applied

because he maintains that VAT intends to tax any economic transfer.

What matters is the economic transfer and this exists every time a consideration is paid for the good or service regardless of the equivalence.

The DGI has maintained a vacillating criterion. The Administrative Contentious Court has a single sentence in this regard (judgment 1270/1993) where it can be understood that it consecrates the thesis of Doctor BLANCO without citing it.

Temporal Aspect: Article 3 of Title 10 of the Ordered Text of the General Tax Directorate of 1996 establishes the date of occurrence of the generating event in the three taxable operations.

In the provision of services, the generating event is configured with its execution. We must wait for the service to finish so that the generating event is configured. There are two different positions about what kind of generating event is: on the one hand, we have the position of Doctor ALBACETE, who considers that it is an instantaneous generating event since, even if the service can be extended over time, the only thing that matters is when it finishes executing, since it is at that moment that

configure. On the other hand, Drs. SHAW and BLANCO maintain that we are facing a periodic generating event because the benefit, no matter how small it may be, extends over time.

In the case of the benefits of the successive tract, the generating event is configured monthly. Article 3 subsection 2 establishes a relative presumption of the billing date as the date of occurrence of the generating event. The DGI can correct that date since it is a relative presumption, if there is an omission, anticipation or delay in billing.

Spatial Aspect: VAT on the circulation of goods and the provision of services follows the criterion of pure territoriality. Taxes the provision of services performed in customs territory. If the service is provided in Uruguay, it is taxed regardless of the nationality and domicile of the parties.

Subjective Aspect:

Active Subject: the State (is collected through the DGI). Passive Subject: The Law only designates a passive subject to the alienator of the good or service, not the acquirer, who will never be part of the tax relationship. The legal nature of VAT taxable persons is discussed at the doctrinal level, and summarizing the different positions we can say that:

VALDES understands that taxpayers are responsible, RODRIGUEZ VILLALBA understands that they are substitutes and BLANCO, FAGET and BORDOLLI consider that they are taxpayers.

The following are taxpayers of VAT:

Those who obtain income included in Article 2, literal A, of the Ordered Text of the DGIL, service providers and university professionals, outside the dependency relationship. It is in this hypothesis where attention is focused, since the provision of professional services by Notaries is subject to VAT, the Notary acting as a taxable person of said tax. The Autonomous Entities and Decentralized Industrial and Commercial Services of the State. is a final consumer. Municipal governments for commercial and industrial activities. Associations and Foundations included in Article 69 of the Constitution that carry out an activity outside the main one. Savings and Credit Cooperatives. Closed Credit Investment Funds. Notary, Banking and Professional Fund.

Basis of Calculation: In the case of delivery of goods and provision of services, an aliquot is applied to the total net amount contracted or invoiced.

VAT is settled according to the category of the taxpayer in question (professionals pay VAT on a bi-monthly basis).

VAT is withheld on all merchantings, real estate, furniture, SA shares, SRL shares, commercial establishments.

This tax was created by Law number 16,107 of March 31, 1990. It is a tax that captures the taxpaying capacity of taxpayers when it is revealed through the sale and / or acquisition of real estate.

Material aspect:

The following acts are subject to this tax:

The alienation of real estate, of the rights of use and habitation, bare ownership and usufruct. This category includes purchases, swaps, donations, life annuity (when the consideration is the alienation of a property), transaction, payment for delivery of goods, social contributions to a company, real estate award to partners for liquidation and dissolution of commercial companies, merger and division of companies, partition with total soulte (the partition that is compensated in money for the impossibility of goods, Article 1142 of the Civil Code), delivery of legacy of a specific species or gender, donations due to marriage made for after the death of the donor, mutual dissent (Article 1294 of the Civil Code). All these legal businesses will be taxed whenever they refer to real estate,Except in the case of assignments of hereditary rights, it is not known whether ownership of real property is included in such rights. The promises of disposals of real estate and the assignments of such promises (if a promise of disposition paid ITP, the disposition in fulfillment of the same will be exonerated). The assignments of hereditary rights and the assignments of possessory rights, always referring to real estate. The transfer of real estate "mortis causa" or to acquire the definitive possession of real estate of an absent. declarative acquisitions prescription thirty-year real estate. They are excluded based on the provisions of the Regulatory Decree: Declarative businesses such as partitions (except partition with total soulte, which will be taxed).The separation of property is not within the generating event. Abdicative businesses, such as the waiver of rights of usufruct, use, habitation, real right of habitation of the surviving spouse, etc. Acts that are intended to modify the social type, for example a SRL that is transformed into a SALas rescissions of promises of alienation of real-estate and the rescissions of the assignments of said promises.

Temporal aspect: It is an instantaneous generating fact.

In the case of acts, facts and inter-legal transactions, the generating event is considered configured as of the date of documentation of such acts.

In the case of documents from abroad, when the document is in a position to be legally valid in the country, that is, it must be legalized, translated (if applicable) and notarized.

In the cases of acquisitive prescriptions, when the sentence that declares it is executed.

In the cases of real estate transfers due to death, with the death of the deceased, that is, with the legal opening of the succession.

Subjective aspect:

Active Subject: It is the State, the DGI being the collecting entity. Passive Subject: The following will be taxpayers:
- The business grantors, in case of being free, the taxpayer will be the beneficiary. Those who are owners in declaratory declarations of prescription. The heirs and legatees in the cases of succession "mortis causa", being jointly and severally responsible for the payment of the tax. The spouse who attends the succession for their property is not a taxpayer of ITP, it will be if he or she attends as heir or legatee.

Settlement: This is a self-assessment tax, where the settlement must be presented by the taxpayer. In the event that a Notary Public intervenes in the business, the latter is obliged to present the affidavit, in accordance with Article 19 of the Tax Code. Regarding the sworn statement, the requirements of Articles 63 and 64 of the Tax Code apply (taxpayer declarations and rectification of the declarations).

Basis of calculation: It is the Real Value of the asset at the time the generating event is updated by the CPI (consumer price index). The CPI for the month in which it operates must be considered.

Aliquots: They are as follows:

Oneroso: Acquirer and alienator 2% each. Free: 4% beneficiary. Heirs and legatees in an ascending or descending straight line with the deceased: 3% (in compliance with the provisions of Article 48 of the Constitution). taxpayers: 4% (prescription, heirs and legatees out of the straight line).

Term for payment: Article 9 of Decree 252/82 establishes: “The term to present the sworn statement and make the payment will be 15 days from the day following the date of granting or the date on which the judgment was executed, or prior to registration if it was done before said term. ” The DGI has considered them days in a row. For its part, Article 15 of the aforementioned Decree establishes: “In the case of successions due to death, the maximum term to pay the tax and file the sworn statement will be one year from the time the event is configured generator (legal opening of the succession-death of the deceased). ”

Comptroller: We must distinguish:

¨ Comptroller by DGI and Public Registries:

Article 12 of Title 19 of the Ordered Text establishes the duty of the Public Registries to:

a) Control the ITP payment; and b) Not registering the acts or contracts where the payment of the tax is not accredited.

Although the term for the payment of the ITP in a succession is one year, it must be paid before the registration of the Certificate of Car Results. That is, according to a query answered by the DGI to the General Directorate of Registries, the Domain Transfer Registry is required by law to control the ITP payment even before the payment deadline expires if the registration of the taxed act.

In turn, this obligation is expressed in Article 8 of Decree 252/98.

The Registers must verify the coincidence of the data of the sworn statement with the document to be registered, and record such coincidence, date of settlement and payment. In case of immunity or exemption, it must appear in the sworn statement according to the evidence stamped by DGI

¨ Comptroller by the Clerk: Decree 252/98 in its Article 7, designates retention and collection agents to the Clerks involved in the encumbered acts, and Article 8 refers to the content of the sworn statement.

Responsibility: Law number 16,107 establishes the solidarity of all taxpayers and those responsible.

By Article 21 of the Tax Code, the legal representatives and volunteers who intervene in taxable acts will be responsible.

The grantors of the encumbered acts will also be responsible. (For example, a donor is also jointly responsible for the payment of the ITP with the donor who is the taxpayer).

Pursuant to Decree 252/98 in exercise of the delegation made by Law number 16,107, collection agents are appointed Notaries who intervene in taxable businesses.

Waivers

GENERATOR FACT

MATERIAL ASPECT: ARTS. 2 to 6.

The IRAE taxes the following income:

1- Business income.

2- Income assimilated by the habituality in the sale of real estate.

3- IRPF income by option or mandatory inclusion.

BUSINESS INCOME. - art. 3

BUSINESS INCOME.

-COMPANY (capital + labor) AGRICULTURAL INCOME

The following are business income:

"Those obtained by taxpayers of art. 3A, regardless of whether it is pure capital, labor, or both.

Taxpayers included in art. 3A: we find the SA here which is relevant to the case at hand.

Business income according to the aforementioned article constitutes those obtained by Public Limited Companies among other subjects named there.

SPACE ASPECT: ART. 7. -

The IRAE follows the criterion of the source: only Uruguayan source income is taxed so that the one from abroad is outside the generating event.

TEMPORAL ASPECT: art. 8

ART. 8o.- “Fiscal year. - Income will be attributed to the fiscal year in which the company's financial year ends, provided sufficient accounting is kept in the opinion of the General Tax Directorate (DGI). Otherwise the annual financial year will coincide with the calendar year; however, in view of the nature of the exploitation or other special situations, the aforementioned Directorate is empowered to set the annual financial year on a date that does not coincide with the fiscal year… ”

IRPF INCOME TAXED BY IRAE BY OPTION OR INCLUSION

PRECEPTIVE. Art. 5.-

If the taxpayer exceeds 4,000,000 UI of independent work income in the year, the IRAE is taxed as required.

It also begins to pay corporate wealth tax.

The IRAE taxes the income accrued in the financial year.

1- For those who settle for sufficient accounting: the fiscal year is the annual financial year.

2- The rest of the fiscal year is the calendar year.

3- For those who obtain agricultural income, the fiscal year is the agricultural year (1.7 to 30.6).

TAXPAYERS OF IRAE. Art. 9

A) Companies with or without legal status, resident in the Republic, even those in liquidation ……… ”

BASIS OF CALCULATION OR LIQUIDATION OF IRAE arts.16 Y ss

The IRAE admits two forms of settlement: real base or ficta base.

They are obliged to liquidate by real basis those who must keep sufficient accounting, in the proposed case being SA etc.

To carry out the settlement of IRAE by real basis, the gross income must be calculated, deducting the admitted expenses, reaching the net income.

The IRAE taxes the net income with 25%.

Increase in gross income. - art. 17: If the taxpayer obtains any of the income detailed in art. 17, you must add them to the gross income.

NET INCOME: arts. 19 et seq. It is the gross rent minus the expenses necessary to obtain and keep the rent.

The IRAE admits some deductions, but with certain limits, conditions or

principles for your deduction of expenses.

1- Expense accrued in the year.

2- Duly documented expenditure. (invoice, contract, etc.).

3- Necessary expense.

4- Rule or padlock clause: the expense for the counterpart must be

taxed with personal income tax, IRNR, IRAE, or taxed abroad.

ANNEXED

DUE DILIGENCE OF THE SCRIBE BEFORE MONEY LAUNDERING IN HIS PROFESSIONAL ACTION

Public Notaries are considered obliged subjects to control the legal requirements on money laundering. When they carry out operations for their clients related to the following activities:

Purchase and sale of real estate, administration of money, securities and other assets, administration of bank, savings or securities accounts, organization of contributions for the creation, operation or administration of companies, creation, operation or administration of legal persons or other legal institutes and merchanting of commercial establishments.

The degree of diligence to apply is variable. Said graduation ranges from “minimum” to “intensified” diligence, according to cases and situations.

To this end, the suggested model form has been published for compliance with the due diligence referred to in Law 18,494 and Decree 355/2010.

Either of the two published options may be used. (Model A in word processor format or Model B in pdf form format with fields to fill in). The form is divided into two parts. One relating to the identification data of the people involved in the operation. And another with the declaration to be signed by the acquirer. It is also accompanied by guidelines for its filling.

The form was agreed between the AEU and the Secretary for Money Laundering, the Financial Information and Analysis Unit (UIAF) of the Central Bank and the Internal Audit of the Nation, the latter being the body that controls the Notaries in this regard.