Outflow tax rate and other tax amendments

On December 29, 2023, the President of the Republic issued two Executive Decrees with tax amendments:
  1. The Executive Decree 98 by which it is established that the outflow tax (ISD) rate will remain at 3.50% until December 31, 2024.
  2. The Executive Decree 99 which amended the following regulations:
a.    The Internal Tax Regime Law Regulations.
  • The voluntary income tax advance payment may be performed until January 31 of each year. Before the reform, such payment was allowed until December 31.
  • Veterinary services are included as health services subject to 0% Value Added Tax (VAT).
  • It is clarified that taxpayers must keep the documents that support the accounting for 7 years.
b.    Regulation of Invoices, Withholding Certificates, and Complementary Documents.
  • Taxpayers classified as Large Taxpayers must include the legend “Large Taxpayer” in their invoices.

Andrea Moya, Partner at CorralRosales
amoya@corralrosales.com
+593 2 2544144

DISCLAIMER: The previous text has been prepared for informational purposes. CorralRosales is not responsible for any loss or damage caused as a result of having acted or stopped acting based on the information contained in this document. Any additional determined situation requires the specific opinion and concept of the firm.

 

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