“There are times a taxpayer owes a million pesos in taxes and ten million pesos in surcharges. That’s not going to happen anymore,” Minister Díaz stressed when presenting the project.
Presented on Thursday by the Minister of Finance and Economy, Magín Díaz, the new tax reform proposal focuses on a tax amnesty that regularizes past rules and the elimination of advance tax payments for microenterprises with the aim of reducing the tax burden on lower-income segments.
The minister mentioned that an amnesty for tax debts is contemplated with a deadline set for December 31 but pointed out that those who avail of it will have up to 12 months to pay, giving them exactly one year to pay.
This resource will also allow the exoneration of surcharges and arrears, but not of the capital, and in some cases the elimination of these penalties will be up to 100%, depending on the specific details established by law.
“There are times a taxpayer owes a million pesos in taxes and ten million pesos in surcharges. That’s not going to happen anymore,” he stressed.
As for advance tax payments, their complete elimination is contemplated for microenterprises, whereas small companies will pay them as individuals, three payments a year instead of 12, applicable exclusively for those that sell up to 82 million pesos.
In the agricultural sector, this measure will also be applied together with Asset Taxes in the Agricultural Sector, leaving it definitively established in the Tax Code.
Magín Díaz also announced the elimination of the Tax on the Transfer of Goods and Services (ITBIS) (VAT) and tariffs on ambulances, fire trucks and garbage compactor trucks, taking into account that many of these vehicles are donations, but when they arrive in the country, they face this tax burden.
ITBIS will also be removed from asphalt and AC-30, being key infrastructure materials that often created unnecessary legal processes, as he explained.
Indexing
The wording in the Tax Code will be modified so that the General Directorate of Internal Taxes (DGII) has the obligation to pay the amount of the advances in the same proportion in which the taxpayer’s income has decreased, which can be verified in the system.
Likewise, and to “support the middle class”, the non-taxable minimum and the fraction of income tax (ISR) that has not been indexed since 2017 will be indexed. He explained that the indexation will be 15% because with that amount the exempt minimum helps to cover the family basket of the second quintile.
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