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Setting up Setting up Document Transcript

  • March 2012COSTS FOR SETTING UP AND OPERATING A BUSINESS IN URUGUAY Document updated as of February 2012. Prices in US$ (US$1 = $19.625) corresponding to the month average of January.
  • Table of ContentsACTUAL BUSINESS COSTS ............................................................................................................................... 3 1. STARTING A BUSINESS ENTITY ......................................................................................................... 3 1.1 STOCK COMPANIES.................................................................................... 3 1.2 LIMITED LIABILITY COMPANY ................................................................................ 6 2. COSTS OF SETTING-UP A BUSINESS.................................................................................................... 8 2.1 RENTAL OF PREMISES (M ).................................................................................. 8 2 2.2 PURCHASE OF PREMISES (M ) ............................................................................... 8 2 2.3 PURCHASE OF URBAN LAND (M ) ........................................................................... 8 2 2.4 HOUSING CONSTRUCTION COSTS ............................................................................ 8 2.5 LAND COST ................................................................................................ 9 3. ENERGY AND OTHER PUBLIC UTILITIES COSTS ....................................................................................... 9 3.1 WATER SUPPLY ............................................................................................ 9 3.4 ELECTRICITY ............................................................................................. 11 4. TELECOMMUNICATION COSTS ........................................................................................................ 12 4.1 FIXED TELEPHONY ........................................................................................ 12 4.2 LOCAL CALLS ............................................................................................ 12 4.3 INTERNATIONAL LONG DISTANCE CALLS .................................................................... 12 4.4 COMMUNICATIONS FROM FIXED TELEPHONES TO MOBILE TELEPHONES ...................................... 13 4.5 MOBIL TELEPHONY (ANTEL) ............................................................................. 13 4.6 INTERNET ACCESS ........................................................................................ 14 5. COST OF LABOR FORCE ................................................................................................................ 15 5.1 AVERAGE NOMINAL WAGES (IN US$) ..................................................................... 15 5.2 MANAGERS NOMINAL SALARIES (IN US$) ................................................................. 15 5.3 SOCIAL SECURITY CONTRIBUTIONS ......................................................................... 15 6.1 GENERAL CARGO TRANSPORTATION ....................................................................... 17 6.2 CEREALS TRANSPORTATION ............................................................................... 17 6.3 RICE TRANSPORTATION ................................................................................... 18 6.4 CONTAINERS TRANSPORTATION ........................................................................... 18 6.5 WOOD TRANSPORTATION ................................................................................ 19 6.6 LIVESTOCK TRANSPORTATION ............................................................................. 19 6.7 CONSTRUCTION TRANSPORTATION ........................................................................ 19 7. CAR RENTAL ............................................................................................................................ 20COSTS RELATED TO PERSONNEL ..................................................................................................................... 21 1. PERSONALIZED HEALTH CARE......................................................................................................... 21 2. HOUSING RENTAL ...................................................................................................................... 21 2.1 RENTAL OF HOUSING IN MONTEVIDEO..................................................................... 21 2.2 SALE OF HOUSING IN MONTEVIDEO ....................................................................... 21 3. HOTELS IN MONTEVIDEO.............................................................................................................. 22 4. CABLE TELEVISION ..................................................................................................................... 22 5. WATER SUPPLY......................................................................................................................... 23 7. ELECTRICITY ............................................................................................................................. 24 8. FIRST-RATE PRIVATE EDUCATION .................................................................................................... 25 8.1 ELEMENTARY SCHOOL .................................................................................... 25 8.2 HIGH SCHOOL ........................................................................................... 25 2
  • Actual Business Costs1. Starting a Business Entity 1This section contains all the important information in regard to starting a business in Uruguay,including all the steps required for an entrepreneur to formally register a Stock Company(“Sociedad Anónima”) or a Limited Liability Company (LLC).Below you will find all the required official procedures to legally start operating a businessaccording to the type of company you wish to incorporate or register.1.1 Stock Companies Shareholders Meeting Cost: Notary fees, 5% of the capital (the minimum fee for any professional intervention may in no case be less than US$ 1,107) Time to Complete: 1 working day. Requirements: The meeting must establish the contracting parties; the name; the domicile; object or activity that will be carried out; capital, contributions, how profits and losses are to be assigned; administration regime, meetings and internal verification, where appropriate, appointment of the first Board of Directors or Administrator, as well as the trustee or the fiscal commission and establish their designation and the stipulated term of the company; stock nature or classes, amount, conditions and emission and other characteristics; the term may exceed the stipulated 30 years. Stock Companies By-Laws Approval By-Laws are subject to the approval of the National Internal Audit Office (AIN). This body is an executing unit of the Ministry of Economics and Finance (MEF), its main role is the enforcement of stock companies legal By-laws and the subscriptions and minimum paying in of capital. The administrative procedure must be carried out in person. You may choose between the standard By-Law developed by the National Internal Audit Office (which can be acquired in the aforementioned body), or a self-developed By-Law. Cost: Standard procedure US$ 560 Execution term: 30 calendar days immediately following its incorporation Time to Complete: 30 calendar days since it was received Requirements: i. Original By-Law or a notarized copy with signatures certification and their corresponding seals. ii. Certificate of subscription and paying in of capital with its corresponding stamps, according to the models available at the web site: www.ain.gub.uy.1 Source: Online Portal (www.portaldelaempresa.gub.uy) 3
  • iii. Approval application note with its corresponding copy including the following information of the petitioner: Domicile, telephone and fax. The note must be addressed to the National Internal Auditor and must be signed by an authorized person.One-Stop Shop: Registration of newly incorporated Stock CompaniesOne-Stop Shop is a procedure between the Social Security Bank (BPS) and the TaxAdministration Department (DGI). The DGI is an executing unit of the Ministry ofEconomics and Finance (MEF) and a supervising and collecting agency. The BPS is anindependent entity of the Uruguayan State and a competent body in regard to theprovision and coverage of social security. Cost: Professional Stamp Execution Term: 30 calendar days starting from the articles of incorporation date Requirements: i. Forms: Access to in DGI and BPS ii. Documentation to be Submitted - Two photocopies of the shareholders’ ID card - Notarial certificate and two photocopies including: Signature of all the founders, information of the founders, tax domicile, articles of incorporation date.National Insurance Bank (BSE)The National Insurance Bank (BSE) is an independent entity of the Uruguayan State.Employers that have dependent personnel must start proceedings before theaforementioned entity in order to obtain the Accidents at Work and OccupationalDiseases Insurance. Cost: Without cost Execution Term: At the time of personnel hiring Time to Complete: 1 working day Requirements: i. Form No. 1990, Application for Accidents at Work and Occupational Diseases Insurance. This form can be obtained at the BPS premises or through their web site. ii. For companies with Forestry Activity –logging and harvesting of forests, they have to submit proof as registered rural companies before the BPS, registered under the Rural Sector Employers Contribution according to Law No. 15.852 (Aporte Unificado).Registration of Company with Personnel: Businesses that start operating must perform the corresponding procedure before the General Inspection of Labor and Social Security at the Comptroller Documents Division (IGTSS). The IGTSS is a dependency of the Ministry of Labor and Social Security (MTSS) which its core competence is the legal protection of workers. Cost: Without cost 4
  • Execution Term: 10 working days starting from the following day that the business started operating Time to Complete: 15 working days Requirements: i. Original Registration Record in the BPS and DGI ii. Labor Registry Book iii. BPS Sheet (original or photocopy)Registration at the National Registry of CommerceOnce the By-Laws are approved by the AIN the procedures for the registration of thecompany must take place before the Register of Legal Persons -National Registry ofCommerce Department (RNC), for the purpose of complying with part of the necessaryrequirements for the acquisition of the legal entity. The RNC is a dependency of theGeneral Directorate of Registries (DGR), executing unit of the Ministry of Education andCulture. Cost: One Registration Fee (US$ 41) Time to Complete: 5 working days Requirements: i. First notarized copy of the articles of incorporation issued as a private document with Notarial Certification of signatures or first copy of the public deed. ii. Notarized copy of the approved By-Law by the AIN iii. Register Draft of Business Entities (Form approved by the DRG) iv. Notarial certification or record of the company’s registration number in the Fiscal Code Number for Taxpayers (R.U.T.) v. Payment slips from ICOSA (Tax on the Incorporation of Uruguayan Corporations).Publication of the Stock Company By-Law:With the publication in the Official Gazette or any other journal of choice, the companyfinally starts operating officially as a Stock Company. 1. Official Gazette Cost: US$ 23.3 (Price per centimeter of column 6.2 cm) Time to Complete: 2 working days Requirements: i. Certificate of registration in the National Registry of Commerce (RNC) 2. Other Journal: Cost: US$ 41 to US$ 205 Time to Complete: 2 working days Requirements: i. Certificate of registration in the National Registry of Commerce (RNC) 5
  • 1.2 Limited Liability Company Partners Meeting Cost: Notary fees, 5% of the capital (the minimum fee for any professional intervention may in no case be less than US$ 1,107) Time to Complete: 1 working day. Requirements: The meeting must establish the contracting parties; the name; the domicile; object or activity that will be carried out; the capital stock; the number and amount of shares for each partner and the allocated value to in-kind contributions; how profits and losses are to be assigned; administration regime, representation and internal audit system of the company; and the stipulated term of the company (no longer than 30 years) One-Stop Shop: Registration of Partnerships with Contract One-Stop Shop is the unified procedure between the Social Security Bank (BPS) and the Tax Administration Department (DGI) for formally registering a company. The DGI is an executing unit of the Ministry of Economics and Finance (MEF) and a supervising and collecting agency. The BPS is an independent entity of the Uruguayan State and a competent body in regards to the provision and coverage of social security. Cost: Professional Stamp Execution Term: Within the 24 hours following the signature of the contract Requirements: i. Remote Connection and Remote Connection Contract Application Forms. Access to in DGI and BPS. ii. Documentation to be Submitted - Two photocopies of all the partners ID cards - Original or certified copy of the corporate contract - Simple photocopy of the corporate contract - Notarial certification (original and two simple photocopies), including: Information of all the partners that enter the company, names of the administrators and representatives, legal status and complete representation (including date of the contract), tax domicile. National Insurance Bank (BSE) The National Insurance Bank (BSE) is an independent entity of the Uruguayan State. Employers that have dependent personnel must start proceedings before the aforementioned entity in order to obtain the Accidents at Work and Occupational Diseases Insurance. Cost: Without cost Execution Term: At the time of the personnel hiring Time to Complete: 1 working day Requirements: i. Form No. 1990, Application for Accidents at Work and Occupational Diseases Insurance. This form can be obtained at BPS premises or through their web site. 6
  • ii. For companies with Forestry Activity –logging and harvesting of forests, they have to submit proof as registered rural companies before the BPS, registered under the Rural Sector Employers Contribution according to Law No. 15.852 (Aporte Unificado).Registration of a Company with Personnel: Businesses that start operating must perform the corresponding procedure before the General Inspection of Labor and Social Security at the Comptroller Documents Division (IGTSS). The IGTSS is a dependency of the Ministry of Labor and Social Security (MTSS) which its core competence is the legal protection of workers. Cost: Without cost Execution Term: 10 working days starting from the following day that the business started operating Time to Complete: 15 working days Requirements: i. Original Registration Record in the BPS and DGI ii. Labor Registry Book iii. BPS Sheet (original or photocopy)Registration at the National Registry of CommerceOnce the articles of incorporation of the Limited Liability Company is granted, theregistration of the company must take place before the Register of Legal Persons -National Registry of Commerce Department (RNC), for the purpose of complying with partof the necessary requirements for the acquisition of the legal entity. The RNC is adependency of the General Directorate of Registries (DGR), executing unit of the Ministryof Education and Culture. Cost: One Registration Fee (US$ 41) Time to Complete: 30 days from the incorporation of the corporate contract Requirements: i. First notarized copy of the articles of incorporation issued as a private document with Notarial Certification of signatures or first copy of the public deed. ii. Register Draft of Business Entities (Form approved by the DRG) iii. Payment slips from ICOSA (Tax on the Incorporation of Uruguayan Corporations).Publication of the Incorporation of the Limited Liability Company (LLC):With the publication in the Official Gazette or any other journal of choice, the companyfinally starts operating officially as a Limited Liability Company. 3. Official Gazette Cost: US$ 23.3 (Price per centimeter of column 6.2 cm) Time to Complete: 2 working days Requirements: 7
  • i. Certificate of registration in the National registry of Commerce (RNC) 4. Other Journal: Cost: US$ 41 to US$ 205 Time to Complete: 2 working days Requirements: ii. Certificate of registration in the National Registry of Commerce (RNC)2. Costs of Setting-up a Business 22.1 Rental of Premises (m 2 ) Minimum Average Maximum (US$) (US$) (US$)Offices 9 14 38Commercial Premises 7 13 45Industrial Premises 2.5 4 62.2 Purchase of Premises (m 2 ) Minimum Average Maximum (US$) (US$) (US$)Offices 1,600 2,300 3,900Commercial Premises 1,200 1,750 4,500Industrial Premises 230 450 5902.3 Purchase of Urban Land (m 2 ) Minimum Average MaximumUse (US$) (US$) (US$)Residential 450 1,050 9,000Logistic 7 29 50Industrial 4 18 352.4 Housing Construction Costs 3 Price Housing Description (US$ / Type m2) 1 Economic at ground floor level 874 2 Economic duplex 885 3 Average (duplex or not) 1,424 4 Sumptuary with heating system (duplex or not) 1,796 5 Economic collective housing at ground floor level without infrastructure 764 5a Same as item 5 but including its own infrastructure 1,072 6 Economic or average collective GF with elevator, without infrastructure 7292 Source: Villamide Real Estate Advisory Services – Valid as of March, 2012. Approximate values in current dollarsfor Montevideo, excellent locations for each use. 23 Note: - The above information is for the second half of 2010. – Price per m includes: Building materials,remunerations, depreciation of equipments, operating expenses and profits of the construction company, ValueAdded Tax (VAT) and Social Laws (contributions to B.P.S.). Costs do not include land value, professional fees, costsof construction permits, real estate commissions. Source: National Statistics Institute 8
  • 6a Same as item 6 but including its own infrastructure 821 7 Economic or average collective duplex without infrastructure 885 7a Same as item 7 but including its own infrastructure 1,030 8 Economic Tower with elevator 734 9 Average Tower with elevator 760 10 Sumptuary Tower with elevator and heating system 1,1822.5 Land Cost 4 Area Leased Value Total Total Productive Destination Average Average (ha) ( Thousands (hectares) (US$/ha/year) of US$)Total 1,104,593 353 141,539 128Rain-fed Agriculture 296,874 387 76,835 259Rice 47,057 334 6,125 130Agriculture/Cattle Raising 179,308 286 25,501 142Rice/Cattle Raising 3,234 359 353 109Agriculture/Dairy 7,379 164 879 119Cattle Raising 529,318 411 27,324 52Dairy 15,090 104 1963 130Dairy/Cattle Raising 1,688 77 187 110Forestry 23,402 397 2196 94Other sectors (swine, citrus, etc) 1,243 121 177 3033. Energy and Other Public Utilities Costs 53.1 Water Supply3.1.2 Non-domestic private consumption, except industrial consumption Montevideo or other Montevideo or other Volumes 3 Departments Departments up to 1000 m 3 Over 1000 m 3 US$ / m 3.1 2.53.1.3 Industrial Consumption3.1.3.1 Montevideo or other Departments Up to 1000 From 1000 to From 2000 From 2500 From 3000 Over 3500 Volumes 3 3 3 3 3 3 m 2000 m to 2500 m to 3000 m to 3500 m m 3 US$ / m 3,.1 2.4 2.2 2.1 2 1.83.1.3.2 Maldonado Seaside Resort Up to 1000 From 1000 From 2000 From 2500 From 3000 Over 3500 Volumes 3 3 3 3 3 3 m to 2000 m to 2500 m to 3000 m to 3500 m m 3 US$ / m 4.37 3.42 3.22 2.02 2.84 2.674 Source: Agricultural Statistics Office, Ministry of Livestock, Agriculture and Fishery – Year 20115 Source: Obras Sanitarias del Estado (O.S.E.) – March, 2012. 9
  • 3.1.4 Fixed Monthly Charges Connections Location 13 mm 19 mm 25 mm Over 25 mmMontevideo or other Departments (not along the coast) 4.93 7.27 11.71 49.6Seaside resorts in Canelones, Maldonado and Rocha 9.58 14.27 22.92 99.213.1.4.1 Sewage Costs6 Cold Stores, Slaughterhouses Retail stores, and Textiles Oils, Soaps and Activity Bakeries, Other Industries Non-Alcoholic Sector Paper Mills, Dairy Confectioneries and Business Beverages Products, Food and and Pasta Tanneries Fixed Charge 103.62 51.81 77.58 5.33 (monthly)3.2 Fuel7 Price per LiterPREMIUM GASOLINE 97 (unleaded) 1.89SUPER GASOLINE 95 (unleaded) 1.81SPECIAL GASOLINE 87 (unleaded) 1.80GAS OIL 1.75DIESEL OIL 1.28HEAVY FUEL OIL 0.73MEDIUM FUEL OIL 0.89 Price per Kg.SUPERGAS 1.403.3 Gas8 MARKET RATE Fixed Charge Charge per m3 Annual Consumption Range MONTEVIDEO (US$) consumed (US$) Plus Natural From 601 to 4000 m3 51.87 1.03 Top Natural From 4001 to 12000 m3 65.68 1.03 GENERAL SERVICE 1.03(1) (Regulated service 3 Over 12,000 m 83.91 for the business 0.94 (2) sector) 3(2) Applies to monthly consumption of up to 1000 m 3(3) Applies to monthly consumption of Over 1000 m6 Note: Monthly fixed charges.7 Source: Administración Nacional de Combustibles, Alcohol y Portland (A.N.C.A.P.) – data updated as of January 13,2012. Note: Current prices include taxes. One Gallon is equivalent to 3.785 Liters.8 Note: Fees include VAT. Source: Montevideo Gas y Conecta – February, 2012 10
  • 3.4 Electricity 9Below are the current electricity fees for average and large consumers. Both have differentelectricity prices for three different time periods: Peak Hour, Normal Hour, Off-Peak Hour, andprice per maximum power demanded throughout the entire month, in addition to a fixed charge.When the electricity supply is delivered, power and electricity prices differ because of differentvoltage levels; in such a way that while voltage levels increase, prices decrease.Distribution of electricity fees for time periods is as follows: During the period subject to the usual official time: - Peak Hours: From 6:00 p.m. to 10:00 p.m. - Normal Hours: From 7:00 a.m. to 6:00 p.m. and from 10:00 p.m. to 12:00 (midnight) - Off-Peak Hours: From 0:00 to 7:00 a.m. During the period subject to the official times forward: - Peak Hours: From 7:00 p.m. to 11:00 p.m. - Normal hours: From 0:00 to 01:00 a.m., from 8:00 a.m. to 7:00 p.m. and from 11:00 p.m. to 12:00 (midnight) - Off-Peak Hours: From 1:00 a.m. to 8:00 a.m.3.4.1 Average ConsumersOn an optional basis for services that present a contracted power rating higher than or equal to10kw or under or equal to 40Kw at any hour (between the peak-normal time period), and byservices regulations with a contracted power rating higher than 40kw at any hour. Maximum Fixed Level of Electricity Price US$ / kWh FEE Power US$ Monthly Voltage kV Off-Peak Normal Peak / kW Charge US$ MC1 0.23 – 0.40 0.057 0.136 0.315 10.721 MC2 6.4 - 15 - 22 0.056 0.124 0.246 6.915 19.89 MC3 31.5 0.055 0.121 0.203 4.0463.4.2 Large ConsumersFor services that present an average consumption equal to or higher than 90.000 kWh per monthand a contracted power rating equal to or higher than 200 kWh, according to regulations and onan “optional” basis. Maximum Fixed Level of Electricity Price US$ / kWh FEE Power US$ Monthly Voltage kV Off-Peak Normal Peak / kW Charge US$ GC1 0.230 – 0.400 0.056 0.108 0.333 14.125 414.436 GC2 6.4 - 15 - 22 0.054 0.103 0.268 9.289 0.000 GC3 31.5 0.054 0.101 0.226 5.656 0.000 GC4 63 0.054 0.101 0.208 2.227 0.000 GC5 110 - 150 0.054 0.099 0.172 1.559 0.0009 Source: Administración Nacional de Usinas y Transmisiones Eléctricas (U.T.E.). Valid Fees as of January 1, 2012. 11
  • 4. Telecommunication Costs 104.1 Fixed TelephonyFixed telephony costs are the same for urban and rural areas. In this report the data is in US$without VAT included (22%). Family Home 47.1 55.6 New Service Other Clients 47.1 55.6 Connection Fee Family Home 34.7 41.0 Transfer(1) Other Clients 34.7 41.0 Refundable Family Home 47.9 46.3 New Service Deposit Other Clients 89.8 86.9 Family Home(2) 8.7 8.4 New Service Monthly Fee Other Clients 16.4 15.94.2 Local Calls 11This fee applies to all calls between telephony services located at any point within the nationalterritory, and it is from fixed telephony to fixed telephony. Tally value: US$ 0.057. HOURS From 0:00 to 9:00 am and From 9:00 am to 10:00 am from 9:00 pm to 12:00 From 10:00 am to 6:00 pm and from 6:00 pm to 9:00 pm (midnight) 1 Tally / 5 minutes 1 Tally / 3 minutes 1 Tally / 1 minute4.3 International Long Distan ce Calls 12 Normal Fee US$ Countries or Regions per minuteBuenos Aires, Curitiba, Porto Alegre, Sao Paulo, Santiago de Chile and 0.23AsunciónRest of Argentina, Rest of Brazil, Rest of Chile, United States, Spain, 0.26Canada, Italy and IsraelAustralia, France, U.K., Bolivia, Ecuador, Rest of Paraguay, Mexico, Peru, 0.42Germany and SwitzerlandColombia, Costa Rica, El Salvador, Guatemala, Haiti, Honduras, Nicaragua,Panama, Puerto Rico, Dominican Republic, Democratic Republic of Congo 0.47and VenezuelaRest of the world 0.83Insular (Asunción, Cuba, North Korea, Kiribati, Falklands, Nauru, Niue, Is. 1.59Norfolk, Santa Lucia, St. Vincent and the Grenadines and Vanuatu)10 Source: Administración Nacional de Telecomunicaciones (A.N.T.E.L.) – February, 2012. Notes (1): Companies orInstitutions that have over ten telephone services and require their simultaneous transfer will benefit fromreductions over the transfer fee. (2): The client “Family Home” has up to 50 free of charge tallies available permonthly billing period.11 Note: The current fee for the hourly period of 0:00 to 9:00 a.m. and from 9:00 p.m. to 12:00 (midnight) is alsovalid for Saturdays, Sundays and non-working holidays for 24hs. Source: Administración Nacional deTelecomunicaciones (A.N.T.E.L.) – February, 201212 Note: Fees do not include VAT Source: Administración Nacional de Telecomunicaciones (A.N.T.E.L.) – February,2012. 12
  • Border Traffic: Colonia - Buenos Aires 0.23Border Traffic: Bella Unión and Tomás Gomensoro with Monte Caseros;Paysandú with Colón and Concepción del Uruguay; Fray Bentos with 0.13Gualeguaychú; Salto with Concordia4.4 Communications from Fixed Telephones to Mobile T elephones Normal Fee US$ / MinuteMinute from ANCEL cell phone 0.19Minute from MOVISTAR cell phone 0.19Minute from CTI cell phone 0.194.5 Mobil Telephony (ANTEL)ANTEL offers users a large variety of plans according to their use and convenience:Prepaid Plan: Consists on the top-up account by purchasing a card which its cost variesaccording to the following chart:Card Cost (US$) 0.5 1.3 2.5 5.1 10.2 15.3 25.5Price per Minute 0.3(US$)Contracts with or without Limited Credit: Minimum Price per Minute Consumption Normal Fee Reduced Fee (US$) (US$) (US$) 16.97 0.22 0.11 Contract without Limited Credit 36.33 0.19 0.09 67.82 0.17 0.09 16.76 0.23 0.12 Contract with Limited Credit 16.97 0.30 0.12Normal Fee:Mondays to Fridays from 9 a.m. to 9 p.m.Reduced Fee:Mondays to Fridays from 9 p.m. to 9 a.m.Saturdays, Sundays and non-working Holidays (1/1, 5/1, 7/18, 8/25 and 12/25)Blackberry Plan: Monthly Fee (US$) Includes Flat fee for e-mail and terminal navigation 27.97 (Does not include Voice) 13
  • 4.6 Internet AccessAntel provides family and personal access to the Internet, offering the possibility to permanentaccess the Internet without the consumption of telephone tallies, allowing the simultaneoususe of telephone and Internet. Antel offers three possibilities according to the clients needs:ADSL Flat Fee, ADSL by Traffic or ADSL Mobile.ADSL Flat Fee: Plan Name Speed Monthly Fee (US$) Up to 10,240 kbps for downloads Flat Fee 5 Mega 96.31 Up to 512 Kbps for uploads Up to 5,120 kbps for downloads Flat Fee 3 Mega 64.61 Up to 512 Kbps for uploads Up to 4,096 kbps for downloads Flat Fee 2 Mega 44.99 Up to 512 Kbps for uploads Up to 3,072 kbps for downloads Flat Fee 1.5 Mega 29.81 Up to 512 Kbps for uploads Up to 2,048 kbps for downloads Flat Fee 1 Mega 24.97 Up to 512 Kbps for uploads Up to 1,024 kbps for downloads Flat Fee 384 19.87 Up to 512 Kbps for uploadsADSL by Traffic: Plan Name Speed Monthly Fee Up to 3.072 kbps for downloads ADSL 2 Giga 10.09 Up to 512 Kbps for uploads Up to 3.072 kbps for downloads ADSL 5 Giga 14.68 Up to 512 Kbps for uploads Up to 3.072 kbps for downloads ADSL 20 Giga 19.72 Up to 512 Kbps for uploads Up to 5.120 kbps for downloads ADSL 40 Giga 30.06 Up to 512 Kbps for uploads Up to 10.240 kbps for downloads ADSL 80 Giga 45.35 Up to 512 Kbps for uploadsADSL Mobile: Plan Name Speed Monthly Fee Up to 3.072 kbps for downloads ADSL 5 Giga 19.77 Up to 512 Kbps for uploads Up to 3.072 kbps for downloads ADSL 20 Giga 24.71 Up to 512 Kbps for uploads Up to 3.072 kbps for downloads ADSL 30 Giga 29.81 Up to 512 Kbps for uploads Up to 5.120 kbps for downloads ADSL 50 Giga 40.15 Up to 512 Kbps for uploads Up to 10.240 kbps for downloads ADSL 100 Giga 60.54 Up to 512 Kbps for uploads 14
  • 5. Cost of Labor Force 135.1 Average Nominal Wages (in US$) Annual Annual sales Annual Sales for between 6 Sales for Positions less than 6 and 19 Over 19 millions of millions of millions of dollars dollars dollarsSuperior Levels 6,217 6,165 6,273Intermediate Levels 3,052 3,080 3,427Dependency Levels: 1,263 1,383 1,450Administration, Finance and Personnel sectorsDependency Levels: 1,501 1,903 1,620Commercial sectorDependency Levels: 1,062 1,457 1,571Production sector5.2 Managers Nominal Salaries (in US$) Domestic International Market General Positions Companies Companies Average Average AverageGeneral Manager 12,371 10,981 13,326Financial and Business Manager 7,365 6,796 7,669Systems Manager 5,637 5,091 6,183Commercial Manager 8,104 7,941 8,236Production Manager 7,527 6,944 7,794Human Resource Manager 5,659 5,355 5,8835.3 Social Security Contributions 14The following chart contains the tax percentages to social security, including contributionsmade by the employee (which are deducted from their wage while the company acts as awithholding agency) and those made by the company. Taxes are expressed in percentages ofeach employee’s nominal wage. These are fixed percentages, except for the Personal IncomeTax on Residents (IRPF) which is calculated differently. Taxes Employee Contribution15 Company ContributionSocial Security (BPS) 15% 7.5%Health Insurance (1) (2)Personal Income Tax on Residents (IRPF) According to categories (3) 0%Tax on Retributions 0.125% 0.125% (1) Nominal wage up to 2.5 BPC (Benefits and Contributions Threshold)16 : 3% contribution Nominal wage higher than 2.5 BPC: 4.5% contribution with no children and 6% with children.13 Source: Remunerations Survey 2010-2011 – Price Waterhouse Coopers – The above information is for thesecond half of 2011. Note: Figures can be subject to changes according to variations on the exchange rate.14 Source: www.empresasbps.com.uy – February, 2012 and DGI15 Included in the nominal wage16 BPC value valid as of 2012 : US$ 123.16 15
  • (2) Holders of Sole Proprietorships with up to one employee with health coverage (as dependent workers): Contribute 8% BPC by concept of sickness pay. - Sole proprietorships with up to one employee are entitled to health coverage (for the holder and for their minors or disabled dependents) and sickness pay. In order to be entitled to these benefits they must contribute: No children in charge: 9.5% over a taxable amount of 6.5 BPC 11% over a taxable amount of 6.5 BPC - Business holders: Contribute 5% over the total sum of nominal wages of employees in payroll. - Business holders contribute to the Complementary Mutual Fund calculated as follows: CCM=(mutual fund*quantity of employees) – 8% (sum of total taxable amount of employees in payroll) (3) In order to determine the monthly retention of IRPF all income derived from a dependent relationship (nominal remunerations) must be added and all irrecoverable credits must be deducted. Thus, the obtained amount will be levied according to the following income scale: FROM (US$) UP TO (US$) RATE (%) 0 862 exempted 862 1,232 10 1,232 1,847 15 1,847 6,158 20 6,158 12,316 22 12,316 25The main feature of this tax is that it is determined by progressive rates linked to an incomescale. This means that the corresponding monthly income is entered into the scaleand then the corresponding rate of each section is applied to the income portioncomprehended in each section of the scale.The following contributions may be withheld from tax payment: Health Care Insurance, Benefit Funds or Conventional Insurance, contributions to the Tax on Retributions (Fondo de Reconversión Laboral), and to the Notarial Health Care Fund. Retirement Contributions to the Social Security Bank, Banking Retirement and Pension Fund, Retirement and Pension Fund for University Professionals, Retirement and Pension Funds of the Armed Forces, General Directorate of Police Social Assistance, Notarial Social Security Fund and the Administration Companies for Social Security Complementary Funds. Endowment fund (Fondo de Solidaridad) with its additional. Medical assistance for under age children in charge of the taxpayer (US$610 annually). In the case of minors or children who have reached the age of majority and have been legally declared disabled this deduction will be duplicated. This deduction may be carried out in all cases, whether the expense has been made or not. The deduction will be made through the father or mother`s payment; or from both, each one of them paying 50% of the corresponding value. 16
  • In the same way as in the determination of the tax above, the sum of all the deductions will beentered into an income scale as shown in the chart below: FROM (US$) UP TO (US$) RATE (%) 0 369 10 369 985 15 985 5,296 20 5,296 11,454 22 11,454 25The tax to pay will be the result of the subtraction of the tax calculated above minus thedeductions entered into the income scale. Sectors other than the construction and ruralsectors must hire an accidents at work insurance, since this insurance is already included in thecontribution to the Social Security Bank (BPS) for the abovementioned sectors.6. Transportation Cost17These are the sector benchmark prices developed by the National Transport Directorate,dependency of the Ministry of Transport and Public Works. (They are not mandatory)6.1 General Cargo Transport ation Price per km (US$) Price per km (US$) Price per km (US$) Distance in Km Equipment 28t Equipment 15t Equipment 10t From 41-70 5.3 4.5 4.3 From 71 to 100 5.0 3.8 3.6 From 101 to 180 4.3 3.3 3.2 From 181 to 280 3.6 2.8 2.6 From 280 to 450 3.0 2.3 2.2 Over 450 2.9 2.2 2.1Minimum Travel (US$) 195.0 169.4 159.7 Average Value of 14.5 12.7 12.0 Waiting Time (US$)6.2 Cereals Transportation Price per Ton/km (US$) Price per Ton/km (US$) Distance in Km Price per km (US$) Equipment 28t Equipment 21t Up to 40 7.5 0.3 0.4 From 41-50 5.9 0.2 0.3 From 51 to 60 5.6 0.2 0.3 From 61 to 80 5.0 0.2 0.2 From 81 to 100 4.8 0.2 0.2 From 101 to 150 4.7 0.2 0.2 From 151 to 200 4.0 0.1 0.2 From 201 to 300 3.7 0.1 0.2 From 301 to 400 3.2 0.1 0.2 Over 400 3.0 0.1 0.1 Minimum Travel(US$) 190.7 Average Value of 13.3 Waiting Time(US$)17 Source: National Transport Directorate– November, 2010. Note: In every case, prices per kilometers refer todistances covered by the loaded vehicle. All costs have been considered, no VAT included, or tolls if applicable. 17
  • 6.3 Rice Transport ation Price per Ton/km (US$) Distance in Km Price per km (US$) Equipment 28t From Farm to Mill Up to 40 7.85 0.28 From 41 to 60 6.11 0.22 From 61 to 80 5.25 0.19 From 81 to 100 5.15 0.18 From 101 to 130 4.99 0.18 Over 130 4.54 0.16 From Warehouse to Warehouse From 160 to 300 3.87 0.14 From 301 to 450 3.16 0.11 Over 450 2.90 0.11 Minimum Travel(US$) 214.93 Average Value of 15.39 Waiting Time(US$)6.4 Containers Transportation 18 Price of the Journey (US$) Price of the Journey (US$) Location Equipment 15 t Equipment 28 t Montevideo 177.4 195.6 Libertad 228.8 259.7 San Jacinto 228.8 259.7 Villa Rodríguez 297.7 330.3 Florida 370.5 450.4 Nueva Helvecia 427.3 517.1 Maldonado 549.5 667.0 Colonia 549.5 667.0 Trinidad 571.4 694.3 Nueva Palmira 734.4 889.8 Fray Bentos 814.8 990.1 Melo 1,003.8 1,215.9 Paysandú 1,003.8 1,215.9 Tacuarembó 1,003.8 1,215.9 Salto 1,233.4 1,497.4 Rivera 1,182.5 1,497.4 Average Value of 12.2 13.2 Waiting Time(US$)18 Note: Montevideo is considered the Origen/Final Destination. The indicated loads include the containers weight.The same prices were used for locations with similar distances. In cases where the aforementioned can´t be applied,the most proximate location price is considered, adjusting the difference of kilometers covered to thecorresponding unit price. 18
  • 6.5 Wood Transportation 19 Tied Logs Stockpile Distance in km Price per Journey (US$) Up to 3 19.2 Up to 10 27.0 Up to 30 97.0 Loose Logs Distance in km Price per Ton (US$) Up to 50 7.1 From 51-100 13.1 From 101-150 16.6 From 151-250 24.4 From 251-350 31.1 From 351-450 37.9 Over 450 46.26.6 Livestock Transportation Price per km (US$) Distance (km) Equipment 18t Equipment 15t Equipment 12t Truck 9t From 51 to 100 3.9 3.5 3.4 2.9From 101 to 140 3.1 2.9 2.6 2.2From 141 to 250 2.7 2.5 2.3 2.0From 251 to 350 2.7 2.5 2.3 1.9From 351 to 450 2.6 2.4 2.2 1.9 Over 450 2.6 2.4 2.2 1.9 Minimum 223.6 196.5 192.9 162.2 Travel(US$)6.7 Construction Transport ation Price per m3 – kilometer (US$) Equipment 9t Equipment 14t Equipment 28t Cartage Road 0.5 0.3 0.2 Work Cartage Urban 0.6 0.4 0.3 Work Cartage per Hour (Three hours 25.8 28.0 30.9 minimum)19 Prices for wood transportation refer to the complete journey. Drivers do not intervene in the loading orunloading operations and journeys for devolution and classification of wood were not taken into consideration. 19
  • 7. Car Rental 20Car rental fees in Montevideo: MODEL Daily Fee (US$) FIAT STRADA PICK UP 46 CHEVROLET SPARK o similar 58 CHEVROLET AGILE 1.4 o similar 68 CHEVROLET AVEO 1.6 o similar 79 HYINDAI ACCENT 1.6 o similar 88 TOYOTA COROLLA 2.0 o similar 115 CHEVROLET ZAFIRA 2.0 o similar 14020 Note: Fees include VAT, collision and vehicle theft waiver (Charge for waiver obligations US$ 500.OOO),Unlimited Mileage. Source: Europcar March, 2012 20
  • Costs Related to Personnel1. Personalized Health CareCosts for some of the Personalized Health Care Institutions: Institution Plans Summum Plan (Primary Care) Under the age of 18: US$ 90 Adults: US$ 120 Summum Classic Plan Summum Under the age of 18: US$ 135 Adults: US$ 150 Summum Classic Plus Plan Under the age of 18: US$ 180 Adults: US$ 225 0 to 18 year olds: US$ 101 (Discounts for quantity of children) 18 to 29 year olds: US$ 120 30 to 39 year olds: US$ 143 Hospital Británico 40 to 49 year olds: US$ 155 50 to 55 year olds: US$ 205 56 to 60 year olds: US$ 2202. Housing Rental 212.1 Rental of Housing in Montevideo Housing Rental (Coastline) (Approx. 150 m2) Minimum (US$) Average (US$) Maximum (US$) Apartment 1,200 1,750 3,500 Home 1,300 1,900 3,9002.2 Sale of Housing in Montevideo Sale of Housing (Coastline) (Approx. 150 m2) Minimum (US$) Average (US$) Maximum (US$) Apartment 159,000 220,000 495,000 Home 175,500 245,000 535,00021 Source: Villamide Real Estate Advisory Services – Valid as of March, 2012.Values in current dollars. 21
  • 3. Hotels in Montevideo 22Fees for hotels in Montevideo: HOTELS IN MONTEVIDEO LOCATION CATEGORY FEE FROM (US$)Belmont House Carrasco ***** 194Sheraton Montevideo Hotel Punta Carretas ***** 186Four Points by Sheraton Montevideo Downtown ***** 177Radisson Montevideo Victoria Plaza Hotel Downtown ***** 157Cala di Volpe Boutique Hotel Punta Carretas **** 140 NH Columbia Hotel Old Downtown **** 130Best Western Pedro Figari Hotel Carrasco **** 127Palladium Hotel Puerto del Buceo **** 120Cottage Hotel Carrasco *** 119Marti Apart Hotel Pocitos **** 115Punta Trouville Apart Hotel Pocitos **** 110Plaza Fuerte Hotel Historical center **** 104Hosteria del Lago Airport *** 100Pocitos Plaza Hotel Pocitos **** 93Armon Suites Pocitos **** 92 Crystal Palace Hotel Downtown **** 92Lafayette Hotel Downtown **** 91Days Inn Montevideo Tres Cruces *** 88Holiday Inn Montevideo Downtown **** 88Oxford Hotel Downtown **** 87Balmoral Plaza Hotel Downtown **** 82Hispano Hotel Downtown *** 70Lancaster Hotel Downtown *** 67Europa Hotel Downtown *** 66California Hotel Downtown *** 60Tres Cruces Hotel Tres Cruces *** 404. Cable Television 23 TCC Nuevo Siglo Cablevisión MontecableMonthly Cost (US$) 43 42 41 4222 Note: All fees are charged per room and per night and taxes are not includedSource: Reservas.net – February, 201223 Source: Montecable, TCC, Nuevo Siglo, Cablevisión. – March, 2011 22
  • 5. Water Supply 24Fees for domestic consumption are as following: Price per Consumption per Month Location m3 Montevideo or other Departments 3.66 Up to 5 m3 Seaside Resort of Maldonado 4.7 Montevideo or other Departments 7.32 Over 5 to 10 m3 Seaside Resort of Maldonado 9.4 Montevideo or other Departments 0.73 Over 10 to 15 m3 Seaside Resort of Maldonado 0.94 Montevideo or other Departments 1.87 Surpluses of 15 up to 20 m3 Seaside Resort of Maldonado 2.54 Montevideo or other Departments 2.39 Surpluses of 20 up to 25 m3 Seaside Resort of Maldonado 3.16 Montevideo or other Departments 2.79 Surpluses of 25 up to 30 m3 Seaside Resort of Maldonado 3.68 Montevideo or other Departments 3.14 Surpluses of 30 up to 50 m3 Seaside Resort of Maldonado 4.13 Montevideo or other Departments 3.47 Surpluses of 50 m3 Seaside Resort of Maldonado 4.626. Gas 25 Fixed Charge Natural Gas – Montevideo Residential Charge per m3 (US$) (US$) From 0 to 3000 m3 of annual consumption 11.1 1.1 Over 3000 m3 of annual consumption 18.1 0.9 Charge for Charge per Natural Gas – South Area Fixed Charge (US$) Connection m3 (US$) (US$) Residential 6.4 0.5 121.7 Charge for Fixed Charge Charge per Natural Gas – Paysandú Connection (US$) m3 (US$) (US$) Residential 6.4 0.5 121.724 Source: O.S.E – March, 201225 Note: Fees with VAT included. Source: Montevideo Gas y Conecta – March, 2012 23
  • 7. Electricity 26The standard residential fee is for services with residential consumption modality whosecontracted power is less or equal to 40 kW:Electricity Consumption Charge: US$/kWh1 kWh to 100 kWh (monthly) 0.16101 kWh to 600 kWh (monthly) 0.22601 kWh and up 0.25Contracted Power Charge: 2.10Fixed Monthly Charge (US$): 6.33The double hour residential fee (Optional) is for services with residential consumptionmodality whose contracted power is higher or equal to 3.3 kW and less or equal to 40 kW andfor clients that mainly consume in the off-peak time period. Electricity Consumption Charges: US$/kw h Peak 0.29 Off-Peak 0.11 Contracted Power Charge 1.98 Fixed Monthly Charge (US$): 12.63Energy charges are distributed in two time periods, during each day that make up the monthlyinvoice, according to the following detail.During the period subject to the usual official time:• Peak Hour: From 5:00 p.m. to 11:00 p.m.• Off-Peak Hours: From 0:00 to 5:00 p.m. and from 11:00 p.m. to 12:00 (midnight)During the period subject to the official times forward:• Peak Hour: From 6:00 p.m. to 12:00 (midnight).• Off-Peak Hour: From 0:00 to 6:00 p.m. st26 Source: Administración Nacional de Usinas y Transmisiones Eléctricas (U.T.E.). Fee valid as of 1 of January, 2012. 24
  • 8. First-Rate Private Education 278.1 Elementary School Monthly Fee (US$) Tuition (US$) (*) 2 years 219 219 3 years 260 260 Pre-School 4 years 377 377 5 years 471 469 Elementary From 1st grade to 3rd grade 510 507 School From 4th grade to 6th grade 555 5508.2 High School Monthly Fee (US$) Tuition (US$) (*) st th 1 to 4 grade 573 568 th th 5 to 6 grade 520 515 Family Discounts nd 2 Child 20% Discount 3rd Child 50% Discount 4th and up 100% Discount27 Note(*):This fee is charged once a year.Source: La Mennais School, www.lamennais.edu.uy – March, 2012 25