BLP Newsflash – Reform to the Law of Special Contribution to Large Taxpayers

The Legislative Assembly, in plenary session on May 16, 2019, approved the amendment of Article 4 of the Law on Special Contribution to Large Taxpayers for the Citizen Security Plan.

Said reform exempts from the payment of the special contribution of 5% on net profits equal to or greater than US $500,000, the passive subject beneficiaries of the Law of Free Zones, Law of International Services, Law of Tourism, General Law of Cooperative Associations, and Law of Fiscal Incentives for the Promotion of Renewable Energies in the Generation of Electricity.

The reform serves to respect the nature of the special tax areas and exempted subjects, in order not to lose competitiveness in the region. The reform is pending presidential veto and publication.

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