Global Daily Tax News, Uruguay Signs Off On Budget Bill, (Dec 15, 2025)

Uruguay's parliament has signed off on the nation's 2025-29 Budget Bill, with the House of Representatives signing off on the legislation on December 9, 2025.

Notably, the legislation provides for the introduction of a domestic minimum top-up tax (DMTT), to ensure that revenues that would otherwise be paid overseas will instead be paid in Uruguay, where the effective tax rate on profits in Uruguay is below 15 percent.

Other changes in the Bill include the withdrawal of a withholding tax exemption for distributions of dividends and profits to non-resident shareholders or partners. The Government earlier explained that the change is intended to expand Uruguay's taxing rights and ensure the nation does not voluntarily cede tax to other nations.

Specifically, the measure provides that, if the dividends or profits received from Uruguay are taxed in the country of residence of the shareholders or partners and they are granted a tax credit for foreign tax payments, no exemption will apply in Uruguay to those dividends or profits.

The Bill also includes new anti-abuse rules targeting the indirect cross-border transfer of assets, and changes to bring within the scope of taxation certain income and capital gains derived by residents from assets located abroad.