Regulation NAC-DGERCGC20-00000020 issued by the Internal Revenue Service and published on March 20, 2020 in the Official Registry Special Edition 459 established new rules to the income tax withholding regime:
- The following income tax withholding rate was modified:
|Acquisition of all types of movable property of a tangible nature||1%||1,75%|
|Payments that do not have a specific withholding rate||2%||2,75%|
- It was clarified that the acquisition of goods of agricultural, poultry, livestock, beekeeping, bio aquatic, forest and meat origin, which are maintained in their natural condition, will be subject to 1% withholding regardless of whether an invoice or settlement for the purchase of goods or provision of services is issued.
- Additionally, it is clarified that this withholding rate (1%) applies to income from local production and marketing of agricultural activities, even if the taxpayer generating the income is subject to a special income tax regimen.
The new withholding rates are applicable beginning April 1st.
Do you want to receive our newsletters with information like the one you just read?
Click here and subscribe.