Type of retirees authorized to register as a contributor tp the Monotributo scheme

Innovations in extending social insurance coverage to independent workers 75 ■ ―De facto‖ companies, when any of their partners is simultaneously a partner and a director. ■ Those who provide personal services outside the dependency relationship, either individually or in a partnership. ■ Limited liability companies, public limited companies, cooperatives, social cooperatives, non-profit civil associations, non-governmental organizations, foundations, rural companies, construction companies, companies which market clothing in shopping centres, exhibitions, fairs and the like, embassy and international organization officials, employers of domestic services. ■ Retirees due to working incapacity in any job. To ensure compliance with the above and guarantee that workers wishing to evade taxes are not included in the Monotributo scheme, strong control mechanisms were established, including: i Credit card issuers must report monthly to the BPS and the General Revenue Administration DGI on the operations of Monotributo scheme contributors; ii State agencies must report to the BPS and the DGI on what the Monotributo scheme contributors consume or pay for public services; iii To extend the scope of the licenses related to economic activities covered by the Monotributo scheme, Municipalities must coordinate with the DGI and the BPS; iv At the place where their activity is developed, Monotributo scheme contributors must reveal the grounds for their registration with the DGI and the BPS, the last contribution payment receipt, and the documents certifying the origin and existence of the goods. The latter are essential for departmental governments to grant and renew the licences allowing the development of the activities; v Registration may be made in all branches of the DGI and the BPS, through a single and unique form. Therefore, if it is found that the contributor does not belong to the Monotributo scheme, heshe loses all rights, and must pay Value Added Tax, Income Tax of Economic Activities, and Wealth Tax.

11.3. Lessons to be learned and future challenges

Table 18 demonstrates the evolution of the companies contributing to Uruguays social security system from 2002 to 2009, divided according to their size one-person business, small, medium, and large. With the aim of reflecting the effect of the Monotributo schemes reform on the coverage of independent workers, this analysis was subdivided into two periods: 2002-2006 pre-reform and 2007-2009 post reform. As can be seen, in the period subsequent to the reform 2007-2009, the average annual number of contributory one-person businesses reached 68,588, i.e. 12,722 more than the average annual number of contributor one-person businesses registered in the previous period 55,866. Nevertheless, in terms of average growth between periods, one- person businesses are the companies registering the most momentum 5.1 per cent, followed by small companies, with only 1.7 per cent. As a consequence, the relative share of one-person businesses regarding the total of contributing companies increased about 2.0 per cent.