The Internal Tax Regime Law (LRTI) establishes that, for purposes of determining the taxable base of Income Tax, losses incurred by the taxpayer during the fiscal year are deductible.
Article 28 of the Regulations for the Application of the LRTI (RALRTI) provides that losses resulting from destruction, damage, disappearance, obsolescence, or other events that economically affect the taxpayer are deductible, provided that the procedure set out in the applicable regulations is followed.
The RALRTI requires that losses arising from inventory write-offs be supported by a sworn statement executed before a notary or judge, and signed by the legal representative, the warehouse custodian, and the accountant. This sworn statement must detail the final disposition of the goods, whether destruction or donation to public entities or legally recognized private non-profit institutions.
This procedure must be completed before December 31 of each year. Contact us to prepare and manage the sworn statement and ensure a properly supported and compliant deduction.
Andrea Moya, Parner at CorralRosales
amoya@corralrosales.com
+593 2 2544144
