Uruguay Amends Fiscal Stability Compensation for its QDMTT

Uruguay’s presidential decree dated 31 August 2026 replaces the conditional IMCD payment waiver in Decree No. 325/025 with a compensation mechanism. Article 1 requires in-scope constituent entities allocated IMCD in Uruguay to comply with formal obligations and pay the tax; article 7 repeals the earlier decree.  

From conditional waiver to compensation

The Impuesto Mínimo Complementario Doméstico (IMCD) is Uruguay’s domestic minimum top-up tax. Title 21 generally brings within scope constituent entities of multinational groups with consolidated annual revenue of at least €750 million in at least two of the preceding four fiscal years. The calculation uses a 15% minimum rate, a jurisdictional effective tax rate and excess profit after the substance-based income exclusion.

The policy problem predates the new decree. Article 666 of Law No. 20.446 requires the Executive to reconcile existing statutory tax stability protections with the IMCD.Decree No. 325/025 initially addressed that problem through a total or partial payment waiver, tied to the excess over the foreign GloBE tax that would otherwise arise or the amount that could not effectively be credited abroad. It also provided reimbursement where tax had already been paid and required an administrative file for each fiscal year, together with consent to disclosure to the Inclusive Framework.

The earlier arrangement was consequently conditional and already involved administrative substantiation. The replacement makes the IMCD obligation the starting point and treats compensation as a separate claim grounded in the State’s stability commitment. 

Establishing the protected right

The underlying instruments require specific attention. Article 25 of the Free Zones Law, No. 15.921, guarantees users their statutory exemptions, benefits and rights for the duration of their contracts, with State liability for damages. The Forestry Law presents a different structure: its current article 43 expressly excludes the IMCD from the extension of specified forestry benefits to future taxes.

Articles 2 and 5 of the new decree require a protected clause existing when Title 21 entered into force and an obligation on the State to compensate the resulting tax increase. The listed categories cover qualifying free zone contracts signed and authorised before IMCD commencement, qualifying forests planted before that date, and specific government–multinational agreements signed beforehand.

For an affected group, the entitlement analysis should connect the claimant, protected activity or investment, relevant dates and duration of protection to the operative wording of the instrument. Contract amendments, renewals and changes in ownership may require separate consideration. Neither participation in a promoted sector nor the existence of a historic tax benefit, standing alone, establishes the particular compensatory obligation invoked in the application.

Quantifying the compensation