Uruguayan software exporters: tax treatment, dollar invoicing and getting paid

A Montevideo software company with 50 developers bills four US clients in dollars. Uruguay has no exchange controls, and the company keeps dollars at its local bank. Its problem is the arrival: international wires from Boston and Chicago take three to six days, occasionally lose an intermediary fee and sometimes sit while a correspondent bank asks questions.

Tax benefits, with conditions

Uruguay built its software industry partly on tax benefits. Income from software development and certain services exported abroad has had favourable treatment under the corporate income tax (IRAE). Since 2020 the benefit depends on how much of the work is done in Uruguay by local staff, aligning with international rules on substance. Confirm with your accountant how the current rules apply to your mix of work.

Invoicing exports

Uruguayan companies issue invoices through the DGI's electronic invoicing system (CFE). Exports use the export invoice type, identify the foreign client and are usually in dollars. Exports of services are generally outside IVA when they meet the conditions.

Dollars are normal

Dollars are part of daily business in Uruguay. Software companies hold them, pay some costs in them and convert to pesos for local salaries and expenses. Many salaries in the sector are also linked to dollars.

The client side

American companies pay vendors by ACH. US account details in your company's own name let them pay you the same way. The full invoice amount arrives in one to two business days, with a reference. The client will ask for a W-8BEN-E once.

Where Rivet fits

A Rivet business account accepts registered companies after verification, including Uruguayan companies. Approved companies get US account details in their own name on every plan, euro and sterling details from the Growth plan, and payouts in 120+ countries, including to their Uruguayan bank. Payments are matched to invoices and conversions happen at a rate shown before you confirm. Rivet is not a bank; regulated partner institutions hold the funds.