A four-article bill that “seeks to promote” the establishment of technicians and professionals in the Information Technology (IT) sector who are abroad, whether Uruguayan or foreign, entered Parliament.
The objective of the project sent by the Ministry of Economy and Finance (MEF) and the Ministry of Labor and Social Security (MTSS) is the establishment of “talent from abroad” so that they “train local talent, generating a virtuous circle of generation of quality employment”.
Article 1 of the project reads as follows: «The technicians and professionals in the information technology (IT) sector who move to the Republic for the purposes of fulfilling employment contracts in a relationship with companies with regular and permanent activity in Republic and executed in national territory, they may choose, in relation to work income, to pay the Non-Resident Income Tax (IRNR), and not benefit from the current social security system, in which case there is no obligation to make the corresponding contributions.
For this, certain conditions must be met: being a foreigner or national and not having verified fiscal residence in the country in the last five fiscal years prior to moving to national territory; develop full-time activity in the country, a physical presence of 2/3 of the total calendar year; express their will in writing not to rely on the Uruguayan pension system; and obtain all the income from work in national territory, exclusively in a dependency relationship, for the provision of software development services, or other services related to their development.
Article 4 proposes that the option of article 1 “shall apply to labor contracts initiated up to and including February 28, 2025”.
