From monotributo to a sole trader: when and how to make the move
Monotributo has an income limit. When you exceed it, you must move to Literal E or the general regime. When it makes sense, where you land, and how the change is done — with official sources.
Monotributo is the simplest way to start, but it's designed for the smallest. If your activity grows, there comes a point when you must move to a “regular” sole trader setup (Literal E or the general regime). Here's when, where, and how.
The limit that triggers the change
To stay in monotributo, your annual income can't exceed 60% of the Literal E limit. The law puts it this way:
Law 18,083 sets the monotributo limit as:
«Los ingresos derivados de la actividad no superen en el ejercicio el 60% (sesenta por ciento) del límite establecido en el literal E) del artículo 52 del Título 4 del Texto Ordenado 1996, para los sujetos comprendidos en el literal A) del artículo anterior.»
In English: Income from the activity must not exceed, in the fiscal year, 60% (sixty percent) of the limit set in literal E) of article 52 of Title 4 of the 1996 Ordered Text, for those covered by literal A) of the previous article.
IMPO — Law 18,083, art. 71 (monotributo)https://www.impo.com.uy/bases/leyes/18083-2006When to make the move
If you project exceeding that cap during the year, it's wise to switch ahead of time rather than wait and fall into irregularity. The practical rule: track your billing month by month and, if you're heading over, make the change on time. It's not a punishment — it's a sign your business grew.
Where you land: Literal E or general
The usual destination is Pequeña Empresa (Literal E): you stay simple, with IVA mínimo and exempt from IRAE, up to 305,000 UI of income. If you grow even more, you move to the general regime (IVA + IRAE), which already requires keeping accounts. DGI publishes a useful comparison:
DGI — Comparison of Pequeña Empresa and Monotributohttps://www.gub.uy/direccion-general-impositiva/comunicacion/publicaciones/comparacion-pequena-empresa-monotributoHow the change is done
The regime change is processed with DGI and BPS (closing the monotributo and registering the new regime, or the corresponding modification). It's worth doing it with an accountant the first time, so the dates and forms are right and obligations don't overlap.
At a glance
| Question | Answer |
|---|---|
| When do I leave monotributo? | On exceeding 60% of the Literal E limit |
| Where do I go? | Literal E (IVA mínimo) or general regime |
| When do I do it? | Before exceeding, not after |
| With whom? | DGI and BPS |
In short: when you exceed the monotributo limit, you move to Literal E or the general regime. Switch ahead of time, choose the destination well, and do it on time with DGI and BPS. The first time, better with your accountant.