Uruguay sets filing procedure for minimum-tax compensation claims

The resolution, signed on 23 October, implements the administrative process envisaged by Decree 206/026 for Uruguay’s domestic minimum top-up tax, known as IMCD.^[1][2][3]

Narrow protected-rights scope

The decree covers qualifying free-zone users whose contracts were signed and authorised before IMCD took effect, qualifying forestry taxpayers with previously planted forests, and specific pre-existing government agreements with multinational groups. A stability clause must oblige the state to compensate for a tax increase caused by legislative change. This is not a blanket exemption: formal obligations and payment remain applicable. Compensation equals IMCD paid in Uruguay less the resulting reduction in foreign taxes.^[3][4]

Two-stage application

Applicants must first submit a sworn declaration requesting compensation and releasing DGI from tax secrecy solely for the information in that declaration, allowing communication to the BEPS Inclusive Framework. They must then open an administrative file, providing a signed representative’s request, evidence of authority and the applicable stability entitlement.^[1][3]

Evidence and foreign-credit analysis

Supporting material includes the multinational group’s structure, consistent with its IMCD information return, and an audit report explaining why IMCD cannot be credited wholly or partly abroad. The report must address relevant foreign rules, ownership and tax exposure, with translation where needed, legalisation and apostille. Applicants must also provide the relevant year’s country-by-country report and explain changes from the preceding year.^[1][3]

Approval before payment relief

Compensation is implemented through the IMCD return for the relevant fiscal year-end. Applying it against the payment requires completion of both filing stages and a favourable DGI decision before the tax obligation falls due. DGI can request further information. The resolution does not announce a separate application deadline or remove the need to establish entitlement.^[1][3][5]

Prepare the evidence early

For potentially eligible groups, the practical priority is an evidence-and-timing review: establish the protected entity and contractual or statutory basis, quantify foreign tax relief, and assemble the audit and reporting package early enough for DGI review. Groups should not reduce an IMCD payment merely because they have lodged a compensation request.^[1][3][5]