Tax relief? Find its main regulations here.
According to the latest guidelines promulgated by the Government, the Tax relief measures will be applicable to:
a) VAT taxpayers, meaning people who sell assets or services. This includes: importers, exporters, and people subject to the simplified regime, as well as those who sell exempt assets or services.
b) Taxpayer of the selective consumption tax (Import or Manufacturing of Merchandise)
c) Profits contributors
d) Those forced to pay customs duties
According to Law N°9830 or Tax Relief law, the taxpayers who can benefit from the measure without carrying out any procedure before the tax administration are:
(a) VAT Taxpayers, as provided for in Article 4 of the Law on the Value Added Tax, on the fiscal periods of March, April and May 2020;
b) VAT contributors enrolled in the Simplified Taxation Regime, but only with respect to the first trimester of 2020;
c) VAT contributors registered under the Special Agricultural Regime, but only with respect to the first trimester of 2020;
d) Taxpayers of the selective consumption tax who are registered as such in the Single Tax Register of the Taxation office, with respect to tax periods March, April and May 2020.
Beneficiaries of the measure must comply with the obligation of paying the taxes and filing the respective declaration within the first fifteen days of every month (March, April & May). Those who do not comply will face the sanction established in Law N4755, which is a fine equivalent to 50% of the base salary. Those who adopt the measure must pay the amount not paid by December 31 at the latest, so as not to incur interest, and the payment must be done in just one transaction.
It is also possible to make partial payments—“pagos a cuenta”—by preparing and printing a receipt, available on the help platform EDDI-7.
Payment of interests and fines.
Those who, as of December 31st, 2020, have not paid the full tax amount owed and have not applied for the ease of payment option, must pay the interest and the corresponding penalties.
Moratory will not be applicable to:
a) Amounts due that correspond to periods other than those established in Law N° 9830.
b) Tax debts for periods covered by the Moratory which result and be determined by the Tax Administration through settlement procedures.
Taxpayers are exempted once from making partial payments of the obligatory profit tax. In order to provide this assistance, the Tax Office will issue a resolution no later than April 30, 2020 with the requirements and procedures to be followed.
Beneficiaries must :
a) Have filed the respective tax.
b) Have paid in full, at the time of signing the payment arrangement, a corresponding minimum premium, which is
twenty percent (20%) of the amount owed.
c) Be up to date on all other formal and material duties before the Tax Administration.
Exemption of VAT for Commercial Establishments (PYMES).
The exoneration will only be applicable to the leasing of real estate used for commercial activities. The lessor of the property must comply in the following ways:
a) Be registered as a taxpayer of the VAT tax before the General Tax office.
b) Verify that the lessee is also registered as a taxpayer.
Both, lessor and lessee must file the monthly VAT tax declaration. The owner of the property must declare the lease income and must also issue the digital invoice.
Moratorium of customs tax obligations in the final import of assets.
Only applicable for individuals or corporations registered as Taxpayers before the Tax Authorities. The moratory will be individually determined. Within the available payment methods, you can find direct debit of a funds account or through bank deposit in one of the Treasury accounts. Beneficiaries must pay the total amount corresponding to one or more customs declarations before December 31st, 2020. The importer could request an arrangement of the owed amount before December 31st, which must cover the entire amount owed. This request must be approved by the Customs control office.
Agricultural and livestock products.