When Uruguayan law requires an accountant — and when it does not

"Do I need an accountant?" usually gets answered with opinions. But it is a legal question and the answer is written down. The trouble is that it gets asked as if it were one thing, when it is really three separate obligations with different rules and different thresholds. Only one of them literally says a professional is required. Let us take them one at a time, and mark clearly where none of them is triggered.

The three obligations people conflate

Before looking at any amounts, it helps to see what is actually being demanded in each case. These are not the same thing:

• Keeping contabilidad suficiente: a regime of formal accounting records. The rule obliges you to keep the books, not to hire someone.
• Registering your estados contables with the state: filing them with the Auditoría Interna de la Nación (AIN) within a deadline.
• Producing a report signed by a Contador Público: here the rule does demand the signature of a licensed professional.

The third is the only one that literally forces you to engage an accountant. In practice the first usually drags the third along with it, because whoever must keep full accounting records ends up having to file statements somewhere.

Obligation 1: keeping full accounting records

This is the one that decides whether your business can stay on the ficto regime or must move to formal accounting. It lives in the IRAE regulation:

The first two groups covered:

«Estarán obligados a liquidar este tributo mediante el régimen de contabilidad suficiente: a) Los sujetos pasivos comprendidos en los numerales 1 y 4 a 7 del literal A del artículo 3º del Título que se reglamenta. b) Los restantes sujetos pasivos comprendidos en el referido artículo 3°, los comprendidos en el artículo 4°, y las sociedades por acciones simplificadas, siempre que sus ingresos hayan superado en el ejercicio anterior las UI 4:000.000 (cuatro millones de unidades indexadas) a valores de cierre de ejercicio.»

In English: The following shall be obliged to settle this tax under the full-accounting regime: a) taxpayers covered by numerals 1 and 4 to 7 of literal A of article 3 of the Title being regulated. b) the remaining taxpayers covered by that article 3, those covered by article 4, and simplified joint-stock companies (SAS), provided their income in the previous fiscal year exceeded UI 4,000,000 (four million indexed units) at year-end values.

Literal a) points to a specific list. Those subjects are obliged always, no matter what they invoice. Here is the list:

Numerals 1 and 4 to 7 that the article refers to:

«1. Las sociedades anónimas y las sociedades en comandita por acciones, aun las en formación, a partir de la fecha del acto de fundación o de la culminación de la transformación en su caso. (…) 4. Los establecimientos permanentes de entidades no residentes en la República. 5. Los entes autónomos y servicios descentralizados que integran el dominio industrial y comercial del Estado. 6. Los fondos de inversión cerrados de crédito. 7. Los fideicomisos, con excepción de los de garantía.»

In English: 1. Corporations (sociedades anónimas) and partnerships limited by shares, including those being formed, from the date of the founding act or of the completion of the transformation as the case may be. (…) 4. Permanent establishments of non-resident entities in the Republic. 5. Autonomous bodies and decentralised services forming part of the industrial and commercial domain of the State. 6. Closed credit investment funds. 7. Trusts (fideicomisos), except guarantee trusts.

And there is a third group, those arriving from IRPF:

«c) Los contribuyentes del Impuesto a las Rentas de las Personas Físicas, y las entidades que atribuyen rentas y opten por liquidar este tributo de acuerdo a lo dispuesto en el artículo 6º de este Decreto, siempre que los ingresos que originan rentas gravadas por dicho tributo hayan superado en el ejercicio anterior las UI 4.000.000 (cuatro millones de unidades indexadas).»

In English: c) Personal Income Tax taxpayers, and income-attributing entities, that opt to settle this tax under article 6 of this Decree, provided the income generating income taxable by that tax exceeded UI 4,000,000 (four million indexed units) in the previous fiscal year.

The same article closes with a sentence worth reading before choosing anything for convenience:

Those not obliged may choose, but are then locked in for three years:

«Los sujetos pasivos que no resulten obligados de acuerdo a lo dispuesto precedentemente, podrán optar por tributar mediante el régimen de contabilidad suficiente o el dispuesto en el artículo 64°. Quienes sin estar obligados opten por tributar con contabilidad suficiente, deberán continuar liquidando por dicho régimen por al menos tres ejercicios, incluido el del ejercicio de la opción.»

In English: Taxpayers who are not obliged under the preceding provisions may opt to pay under the full-accounting regime or under the one set out in article 64. Those who, without being obliged, opt to pay under full accounting must continue settling under that regime for at least three fiscal years, including the year of the option.

In plain terms: a corporation, a permanent establishment or a trust keeps full accounting from day one. An SRL, an SAS or a sole trader only if they exceeded UI 4,000,000 in the previous year. Below that you can stay on the ficto regime and the rule asks nothing further. And be careful about opting in voluntarily: that is three years minimum, not a trial year.

Obligation 2: filing your statements with the AIN

This obligation is different from the previous one, and many people assume it applies to them when it does not. It originates in the companies act:

The general rule of Ley 16.060:

«Las sociedades, cualquiera sea su forma, deberán registrar ante el órgano estatal de control sus estados contables dentro de los plazos que establezca la reglamentación.»

In English: Companies, whatever their form, must register their financial statements with the state control body within the deadlines set by the regulation.

And the regulation is what sets the amounts — which are high:

«Las sociedades comerciales, las sociedades y asociaciones civiles, las fundaciones, las cooperativas, las sociedades y asociaciones agrarias, las entidades no residentes que cumplan las condiciones que establece el artículo 2° de la Ley N° 18.930 de 17 de julio de 2012, los fideicomisos y fondos de inversión no sometidos a regulación por el Banco Central del Uruguay, las instituciones de asistencia médica privada de profesionales (IAMPP) y las sociedades por acciones simplificadas (SAS), deberán registrar sus estados contables válidamente emitidos y, en caso de corresponder, aprobados, cuando: a) los ingresos totales del estado de resultados, al cierre de cada ejercicio anual, superen las 26:300.000 (veintiséis millones trescientas mil) Unidades Indexadas; o b) obtengan ingresos que superen las 4:000.000 (cuatro millones) de Unidades indexadas al cierre de cada ejercicio anual, siempre que al menos el 90% (noventa por ciento) de los mismos generen rentas que no sean de fuente uruguaya.»

In English: Commercial companies, civil companies and associations, foundations, cooperatives, agrarian companies and associations, non-resident entities meeting the conditions of article 2 of Law No. 18,930 of 17 July 2012, trusts and investment funds not regulated by the Central Bank of Uruguay, private medical institutions of professionals (IAMPP) and simplified joint-stock companies (SAS) must register their validly issued and, where applicable, approved financial statements when: a) total income in the income statement, at the close of each annual year, exceeds 26,300,000 (twenty-six million three hundred thousand) Indexed Units; or b) they obtain income exceeding 4,000,000 (four million) Indexed Units at the close of each annual year, provided at least 90% (ninety percent) of it generates income that is not of Uruguayan source.

• Sole traders do not appear on that list: they are not companies and do not file statements with the AIN.
• An SRL or SAS below UI 26,300,000 of income is not obliged to file either, unless it falls under case b).
• Case b) is the surprising one: above UI 4,000,000 you must file if at least 90% of that income is not Uruguayan-source. That is the typical scenario of a Uruguayan company invoicing almost everything abroad.

And failing to file has a concrete consequence beyond the fine:

«Aquellos obligados que, por su naturaleza, puedan distribuir utilidades, pero no cumplan con la obligación de registrar en el plazo fijado, no podrán hacerlo hasta tanto cumplan dicha obligación.»

In English: Those obliged parties that, by their nature, may distribute profits but fail to comply with the registration obligation within the fixed deadline may not do so until they comply with that obligation.

The filing deadline is 180 calendar days from the close of the fiscal year, and the procedure is done online with the AIN.

Obligation 3: the report signed by a Contador Público

Here is the one rule that says in so many words that you need a professional. And its reach is wider than it looks, because it is not only about the AIN:

The rule applies to any public body:

«Los estados financieros que sean presentados ante organismos públicos deberán cumplir los siguientes requisitos: (…) 3) En caso de que el organismo no determine un informe profesional con un alcance específico, deberán estar acompañados como mínimo por informe de compilación, emitido por profesional que posea título de Contador Público o equivalente reconocido legalmente en la República Oriental del Uruguay.»

In English: Financial statements presented to public bodies must meet the following requirements: (…) 3) Where the body does not determine a professional report with a specific scope, they must be accompanied at minimum by a compilation report, issued by a professional holding the title of Contador Público or an equivalent legally recognised in the Eastern Republic of Uruguay.

And for filing with the AIN specifically, the body's own resolution states which type of report is accepted:

The three possible scopes, and the exception for open corporations:

«Los estados contable deberán ser acompañados por certificado de un profesional universitario con título de Contador Público o equivalente, habilitado para su ejercicio en el territorio nacional. Serán aceptados como certificaciones los informes de compilación, de revisión limitada o de auditoría elaborados según normas generalmente aceptadas, excepto para las Sociedades Anónimas Abiertas (artículos 247 de la Ley 16.060), cuyos estados contables deberán ser acompañados con informe de auditoria externa. El informe deberá contar con la firma digital del profesional actuante»

In English: The financial statements must be accompanied by a certificate from a university professional holding the title of Contador Público or equivalent, licensed to practise in national territory. Compilation, limited review or audit reports prepared under generally accepted standards shall be accepted as certifications, except for Open Corporations (articles 247 of Law 16,060), whose financial statements must be accompanied by an external audit report. The report must bear the digital signature of the acting professional.

The three reports are neither the same thing nor the same price. Compilation is the lightest: the accountant organises and presents the information without expressing an opinion on it. A limited review adds a narrow examination. An audit is the full scope, and it is the only one accepted for open corporations. If nobody has demanded a specific scope from you, the legal minimum is a compilation report.

When the law requires none of this

This is the part that is almost never said out loud. If you are in one of these situations, none of the three obligations is triggered:

• Monotributo: a simplified substitute regime, with no full accounting and no statements to register anywhere.
• A sole trader on IRAE ficto or on Literal E, below UI 4,000,000: article 168 does not oblige you, and you are not a company, so you file nothing with the AIN either.
• A small SRL or SAS that does not reach the Decreto 156/016 amounts and did not exceed the UI 4,000,000 of article 168.

In those cases the duty to declare and pay still exists, but it falls on the taxpayer rather than on an interposed professional: returns are filed through the DGI's online services and need no accountant's signature. That you can do it yourself does not mean it pays to, but it matters to know the law does not impose it.

When it is not the law asking, but the counterparty

There is a second family of situations where you will need an accountant anyway, even though no tax rule obliges you. There, the requirement comes from whoever is on the other side of the desk:

• Banks: opening a business account or asking for credit usually means producing financial statements or an income certificate.
• Public procurement: registering and contracting through RUPE calls for certificates and accounting documentation.
• Renting premises and guarantees: many agencies and guarantors ask for an accountant's income certificate.
• Investors, partners or a future sale of the business: without orderly accounts you start the negotiation at a disadvantage.
• Immigration and residency procedures where you must evidence your own income.

Summary by situation

"Not required" does not mean "not worth it"

The legal question and the practical question are different, and mixing them helps nobody. Even with no obligation, there are situations where hiring someone tends to cost less than the mistake:

• You are near a threshold. Crossing UI 4,000,000 changes your regime for the following year, and it is better seen coming than discovered late.
• You have employees. Payroll and contributions have more edges than the tax return itself.
• You invoice abroad, or you have several income sources at once with exemptions in play.
• You are about to opt for IRAE. The decision binds you for several years and does not unwind in January.
• You are carrying arrears or lost your up-to-date certificate: here the cost of getting it wrong is high.

And the reverse: if you are a monotributista or a small sole trader with steady income and no employees, handling it yourself with a clear calendar is perfectly reasonable. Most problems at that scale are not accounting problems, they are deadline problems.

Frequently asked questions

• I am a monotributista, do I need an accountant? The law does not require one. It is a matter of convenience, not obligation.
• I have a sole trader business with modest turnover — must I keep full accounting? No, as long as you did not exceed UI 4,000,000 in the previous year. You can settle under the ficto regime.
• How much is UI 4,000,000 in pesos? It depends on the day: the Indexed Unit is updated and the rule says to take the value in force at the close of the fiscal year. It has to be calculated with that date's figure, not a remembered one.
• Can I file my own returns with the DGI? Yes. No rule requires an accountant's signature; the duty to declare falls on the taxpayer.
• My SRL is small — must I file statements with the AIN? Only if you exceed the Decreto 156/016 amounts. Below them you are not on the list of obliged parties.
• What is a compilation report? The most basic of the three scopes: the accountant organises and presents the information without expressing an opinion or auditing. It is the minimum when the body asks for nothing else.
• If I voluntarily opt for full accounting, can I reverse it next year? No. It is at least three fiscal years, counting the year of the option.

Keep reading

• Tax regimes and legal forms in Uruguay
• What a sole trader costs and pays

In one line: the law obliges you to keep records according to your legal form and turnover, obliges you to file them with the AIN only above high thresholds, and demands a Contador Público's signature when you present financial statements to a public body. Outside that, hiring one is your call. This guide is general information with the sources in plain view and does not replace analysis of your specific case; amounts in Indexed Units must be converted using the value at the close of your own fiscal year.