Emerging Markets Rates and Currencies Handbook

credit line must be agreed with the local counterparty. Non-Resident Restrictions: There are no regulatory requirements for trading FX. License Requirements No licensing is required for FX transactions. Requirements to open a foreign currency account Foreign currency accounts are allowed in the country. Deal Management Rollover: Rollovers are allowed for forwards and NDFs and are typically net settled. Historical rate rollovers are permitted. Unwinding: Unwinds are permitted and the net settlement is determined in accordance to market conditions at the time of the unwind. Early Maturity: Early maturity is allowed and it is subject to market conditions. Documentation Requirements Spot: UYU is a freely convertible currency. There are no regulatory restrictions, legal controls or documentation requirements on the Uruguayan foreign exchange market. Both residents and non-residents are free to trade foreign currencies up to any desired volume. Residents have access to foreign currency deposit accounts and foreigners are allowed to maintain local UYU deposit accounts. There is no regulation or restrictions on dealing LHS vs RHS. Foreign exchanges can be executed through banks, FX brokers and financial institutions. Same day, next day, spot and forward FX contracts are available subject to market liquidity. Trade Flows No local law documentation requirements. Capital Flow and FDI There is no specific regulation governing investment by foreign investors. No local law documentation requirements. Citibank Uruguay Citibank NA Sucursal Uruguay Costa Rica 1740 Montevideo 11500 Uruguay FX Sales Contact: +598 2604 4444 Tax Summary – Uruguay Uruguay Country Tax Deductibility and Considerations Inter-Co Debt Offshore Bank Loans Offshore Local Borrowing Derivatives Equities W/H Tax • 12% WHT • No WHT • N/A • N/A Deductibility of interests • Fully deductible • N/A • N/A Deductibility of (FX) Losses • Fully deductible • N/A • N/A Other Taxes/Duties • 1.5% of Capital Tax • 0.4% (Central Bank and Pension Funds tax) • N/A • N/A Comments • N/A • Non deductible for Capital Tax (Impuesto al Patrimonio) unless located in Tax Free Zone (or Public Sector) • N/A • N/A • N/A Note: Citigroup Inc. and any of its affiliates do not provide accounting, tax, or legal advice. Please seek advice from a relevant licensed advisor. Source: Relevant legislation, publicly available sources