Cr. Dardo Pérez

Outsourcing Department Manager

Accounting and Taxes

In recent times, the question related to when companies in Uruguay need to have audit or limited review reports has been reiterated, and this has motivated us to briefly review those aspects that, directly linked to company situations, must be taken into account for these purposes.

In this sense, to configure the following situations, it is necessary to have the aforementioned reports:

1) At the request of the General Directorate of Taxes (“DGI”):

• Large Taxpayers: the audit report must be submitted with the annual tax return.
• CEDE Companies (“Special Control of Companies”): limited review report, which must be kept together with the company’s documentation and presented only at the request of the DGI.
• Companies DO NOT YIELD: there are no requirements.
• Companies that are direct and indirect users of Free Trade Zones (“ZF”): must present an annual sworn declaration of their financial statements and annexes in accordance with the provisions of Resolution 1859/008 of the DGI. Note that these reports must be prepared in accordance with the appropriate accounting standards in Uruguay and accompanied by the professional report, namely:

a) If your assets are greater than UR 30,000 (approximately US$ 1,250,000) or you receive net operating income greater than UR 100,000 (approximately US$ 4,200,000), an Audit Report is required.

b) For cases that do not exceed the figures indicated in item a), Limited Review Report.

c) If there is no activity, a certificate of non-activity must be prepared, signed by a Public Accountant.

2). By requirement of the Central Bank of Uruguay, and requested directly by the Financial Intermediation Institutions in case of indebtedness with the financial system during the year:

• If the debt is less than 5% of the value of the RPBB (“Basic Patrimonial Responsibility for Banks”, less than US$ 975,000 approx.), a compilation report is required to accompany the financial statements.
• When it is equal to or exceeds 5% of the RPBB (between US$ 975,000 and US$ 2,925,000 approx.), the financial statements must be accompanied by a limited review report, which must be carried out by an independent professional and in compliance with Pronouncement No. 5 of the College of Accountants, Economists and Administrators of Uruguay.
• And if it is equal to or greater than 15% of the RPBB (greater than US$2,925,000 approx.), the financial statements must be accompanied by an audit report issued by independent professionals in accordance with generally accepted auditing standards.

If you consider it necessary to expand this information, do not hesitate to contact our team of professionals from the Accounting and Tax Outsourcing Department.