Taxes For Small Businesses

Introduction:

Historically, many sole traders in Uruguay operated "informally" due to the high registration and reporting costs associated with a small business.

(Having previously run a small import business in Uruguay, I can testify that the fixed minimum monthly reporting costs can be entirely disproportionate to the size of the business.)

As a result, many sole traders earning a modest living, were not contributing to social security or paying taxes, and didn't have access to healthcare (or any other social security benefits). And additionally, could not get formal credit to grow their businesses.

The government sought to address this problem with reduced reporting requirements for very small businesses.