Migrants and refugees have employment rights and obligations in Uruguay
Employment tax
Migrants and refugees have employment rights and obligations in Uruguay
Wed 23 Jun 2021
As Covid restrictions begin to lift there will inevitably be increased movement of workers across borders. This brings back into focus a range of global mobility and tax considerations for businesses and individuals. Examples include work permits, visas, payroll and social security amongst other issues. Below is a snapshot of some pints concerning Uruguay to add to our previous comments on Mauritius. Please watch out for our further coverage of global mobility issues in other countries and regions.
This article is aimed at entrepreneurs and companies that are relocating their business or expanding into Uruguay. We briefly explore the rights and obligations that migrants and refugees have in the workplace environment in Uruguay.
Migrants: Foreign migrants who work in Uruguay have the same rights and obligations as nationals following current regulations. In the situation where the individual does not have an identity card, the employer may also hire a foreign worker as long as the foreign worker can prove that they are processing an application for temporary or permanent residence. Depending on the case, it is likely the relevant proof will be in the form of a certificate from The National Directorate of Migration – Ministry of the Interior. This certificate will be valid for a period of six months from the date of its issuance.
It should be borne in mind that the authorities of Uruguay do not issue any certificate under the name of “Work Permit”.
Refugees: Refugee applicants who have not yet obtained an Uruguayan identity card may be hired to work in a labor dependency relationship provided that they prove their status as refugee applicants in the country with the current certificate issued by the General Directorate for Affairs Consular and Liaison – Ministry of Foreign Relations.
This certificate will be valid for a period of six months from the date of its issuance.
Employer: When hiring a migrant or refugee worker, the employer must proceed as for any other worker of national origin, registering him/her with the pertinent bodies:
- Social Security Bank (Banco de Previsión Social – BPS) ; with an identity card number or, failing that, with a Passport number, or an identity document from the country of origin in case the residence is pending). In the event that the worker is processing the residence or refugee application, the employer must keep in his / her possession a copy of the current certificate indicated in number 1 or 2, as appropriate.
- State Insurance Bank (Banco de Seguros del Estado); (Insurance against accidents and occupational diseases.)
For a further discusión of the issues, please get in touch with your usual Mazars contact or Luis Ualde.
Want to get notified when new blog posts are published?
Subscribe 
UK Spring Budget 2024
The UK Spring Budget on 6 March 2024 was relatively measured in its tax policy decisions, despite a background of falling inflation and rising tax receipts. Below are some areas of interest for globally mobile individuals, those with UK staff, and those with business and investment interests. Main measures affecting individuals Main measures affecting those […]
South Africa: certain foreign employers to be required to account for payroll taxes from 2024
Currently, the provisional tax system ensures that when a non-resident employer of individuals working in South Africa has no representative employer in South Africa, their employees’ tax obligation is settled in the form of a provisional tax payment by the employee, not the employer. The requirement for an employer to deduct and remit employees’ tax […]
Telework in Europe : the new official framework agreement on social security is out
Following our previous newsletter on this topic, we are now pleased to inform you that the expert working group consisting out of 20 different EU Member States has now officially published the “Framework Agreement on the application of Article 16 of Regulation (EC) No. 883/2004 in cases of habitual cross-border telework” (hereafter referred to as […]
Polish Deal’s tax complexity and worsening economic conditions force revisions
A package of significant tax legislation changes came into force in Poland with effect from 1 January 2022. Dubbed the Polish Deal, these changes were intended to ‘tighten up the tax system’ and deliver a more progressive tax framework. However, they primarily involved a greater burden on a large number of taxpayers, which has subsequently […]
Spanish Supreme Court allows tax benefit to company directors
A Spanish Supreme Court Ruling on 20 June 2022 effectively reverses the decision by the Spanish tax authorities to remove the tax exemption for company directors for works carried out abroad(1). In its ruling, the Supreme Court considers that directors and board members can apply the exemption, provided that requirements set out in Article 7.p) […]
New tax rules in Luxembourg impacting cross-border workers and PEPPs
Guidelines on the taxation of cross-border workers during the Covid-19 pandemic and an update on PEPP as defined in the latest budget laws in Luxembourg.
Recent Tribunal ruling on the taxation of ESOPs (Employee Stock Option Plans) in India
In accordance with OECD guidelines, the taxability of ESOP in India depends on where employment is exercised and the period of service for which ESOP has been granted.
Switzerland is an attractive business hub. What is their secret?
Choosing a business location involves many considerations, with tax being only one of them. Nevertheless, tax is a consideration. Below is a note commenting on the attractions of Switzerland as a business location. There may of course be other locations that should be considered. Switzerland attracts global business, research, and innovation, and maintains the high ground […]
Updated OECD guidance on the impact of Covid-19 for cross border workers
In April 2020 the OECD issued guidance on the impact of Covid-19 on double taxation agreements (DTA) and their application to cross border workers. In January 2021 they updated this guidance. This guidance is necessary as some cross-border workers have been stranded in a country that is not their normal residence, and double taxation could arise without applying a practical approach to the […]
Why Czech Republic’s tax system is attractive for expatriate employees?
Tax reform continues to come in waves across the globe. One common theme of many reforms is tax breaks for low to mid wage earners and surprising tax hikes for high wage earners. This trend seems to be consistent with the latest out of the Czech Republic. New changes to the Czech tax law effective […]
How to attract private capital to fund the new American Jobs Plan?
On March 31, 2021, the Biden administration released The American Jobs Plan, which detailed, among other critical items, the need for infrastructure improvements to enhance America’s competitiveness and to create well-paid American jobs. For this to be successful in attracting needed private capital, the existing regulations concerning Real Estate Investment Trusts (REIT) and Foreign Investment in […]
Covid-19 and the impact on taxation of individuals and permanent establishments in Nigeria
world. In addition to adversely affecting the world economy, the restrictions placed on travel could have personal income tax implications for individuals and permanent establishment risks for businesses.
Home office: new tax and social security implications in France
With the Covid-19 crisis, working from home is expected to become the “new normal”. 2020 marks the end of many tax holidays with respect to home working arrangements within and between certain countries. We have already featured some general comments on the implication of remote working in previous blog posts; and we will regularly feature […]
Remote Worker – “necessity” or “choice”?
During the first wave of Covid-19 back in the spring of 2020, many employers found themselves dealing with the issue of “remote workers” in significant volumes, for the first time. When “working from home”, means working from home in another part of the city or the country then the issues are more likely to be […]
State tax telework developments
It seems right now that most countries around the world are busy regulating certain telework arrangements cross border with a keen focus on taxation rights. The U.S. is no different. In fact, the U.S. has the matter pending before its highest Court for review. A decision will not only impact the states named but obviously […]
Welcome (bienvenidos, willkommen, karibu, bienvenue) to a world of tax incentives
The pandemic has led to many people choosing to relocate. Many are leaving densely populated cities to work remotely to where they feel are more desirable locations for themselves and family. Others are holding steadfast to their crowded city dwellings. Either way, geographies are challenged to retain (or welcome) existing residents and newcomers. Many are […]
The new year brings new social security challenges post- Brexit
What is the issue? With Brexit talks still ongoing, employers should be planning for the impact of a hard Brexit on social security coverage and benefit provision for their employees who travel between the UK and EU (including EEA & EFTA countries and Switzerland) for work. HMRC’s October employer bulletin provided a welcome update on […]