Field of application
To all corporations, to the representatives or branches of foreign corporations, and LTDA/SRL companies, this applies to both corporations that are already registered and those that are going to be registered in the Mercantile National Registry.
Payment
Each tax period will be counted from January 1° to December 31° of the same year.
For entities that are already registered, the tax will be generated on January 1 of each year, and payment must be made within the next 30 days from January 1 of each year.
Regarding the entities established during the year, taxes must be paid within the next 30 days, counting from the day the public deed of the Corporation’s constitution is submitted to the National Registry. The rate must be proportional to the time remaining between the date of submission of the deed and the end of the tax period. The discount stated in the Law of Taxation of the National Registry will not apply.
The tax is paid through the means, forms, and conditions established for this purpose by the National Tax Office.
Rates
The law lists four scenarios under which the rate that must be paid is established:
The corporations that are registered in the Registry of Corporations, but not in the Unique Tax Registry of the General Directorate of Taxation, must pay an amount equivalent to 15% of a monthly base salary (office worker 1) according to the second article of the Law N°7337.
Taxpayers of the utility tax who have declared a gross income lower than one hundred and twenty base salaries regarding the utility tax of the last period, must pay an amount equivalent to 25% of a monthly base salary.
Taxpayers of the utility tax who have declared a gross income between a hundred and twenty and two hundred and eighty base salaries regarding the utility tax of the las period, must pay an amount equivalent to 30% of a monthly base salary.
Taxpayers of the utility tax who have declared a gross income equal or superior than two hundred and eighty base salaries regarding the utility tax of the last period, must pay an amount equivalent to 50% of a monthly base salary.
The legal representatives of the corporations are jointly responsible for the neglect of payment of the taxes stablished in the Law.
Sanctions
In case of non-compliance, the Code of Rules and Procedures of Taxes.
The National Registry will not be able to issue certifications or register any documents in favor of taxpayers who are not up to date with their tax payments. A Notary Public that issues certifications to overdue taxpayers must record this condition in the respective document.
Overdue taxpayers are prohibited from contracting with the Government or any public institution.
The debts derived from this tax will constitute a preferential legal mortgage or a preferential lien on the corporation’s assets.
The neglect of payment for 3 consecutive periods is the cause of dissolution. The National Tax Office will send to the National Registry a report of taxpayers who did not pay their taxes, so that the National Registry can proceed with the cancellation of their registry and asset annotation.