About taxes in Uruguay

Uruguay taxes employment income through IRPF, calculated annually in Base de Prestaciones y Contribuciones (BPC) units and withheld monthly by the employer. The scale for 2026 runs from 0% on the first 84 BPC per year (~UYU 552,384) up to 36% above 1,380 BPC. Employees also contribute to BPS: 15% for jubilación (pension), a variable FONASA rate for public health (3%–6.5% depending on spouse and children, with a 1.5% surcharge on gross salary above ~2.5 BPC/month) and 0.1% FRL. A simplified credit of 8% on BPS contributions is deducted from the annual IRPF. Uruguay is one of the few Latin American countries with universal public healthcare funded through FONASA, which is why the household situation directly changes your monthly deduction. The tax year matches the calendar year, and annual reconciliation is filed the following year by those with multiple income sources or eligible deductions.