IASS: the tax on pensions and retirement income in Uruguay

If you draw a pension or retirement benefit in Uruguay, you don't pay IRPF on it: you pay IASS. It's a tax designed specifically for pension income, with its own exempt floor and its own scale. Here's how it works and from what amount you start paying.

What IASS is

BPS itself defines it:

Official definition:

«El Impuesto de Asistencia a la Seguridad Social (IASS) es un impuesto anual de carácter personal y directo, creado por la Ley 18.314, que grava ingresos correspondientes a jubilaciones, pensiones y prestaciones de pasividad uruguayas»

In English: The Social Security Assistance Tax (IASS) is an annual, personal and direct tax, created by Law 18,314, that taxes income from Uruguayan retirement benefits, pensions and pension-related payments

The scale (annual income)

IASS is progressive: each rate applies only to the part of income falling in that bracket. The scale is measured in annual BPC:

The first bracket (up to 108 BPC per year) is exempt. The BPC value for 2026 is $6,864.

The non-taxable minimum

Below the minimum you pay nothing. When you draw pensions from more than one institution at once and the total exceeds the monthly non-taxable minimum of 9 BPC, specific rules apply to consider the combined total. In practice: 9 BPC per month (108 BPC per year) is the floor from which the tax starts to apply.

How it's paid

Usually you don't have to do anything: the body that pays your pension (BPS or another fund) acts as withholding agent and deducts IASS month by month. If you draw from several sources, you may need to file an annual return with DGI to settle the total. The legal framework is Law 18,314:

At a glance

In short: IASS replaces IRPF for pension income, isn't paid up to 9 BPC monthly, and rises in tiers. If you draw from several sources, review your situation with DGI. Confirm the current values with BPS and DGI.