The Ministry of Treasury issued the Regulations for the Tax Relief Law, which established the moratorium on the payment of VAT, Income Tax advance payments, excise tax, and import duties during the months of April, May and June 2020. The Regulations establish that taxpayers registered at the Single Tax Registry (RUT by its name in Spanish), are able to apply the moratorium. For the Simplified Taxation Regime, it will only apply during the first trimester and in the Agricultural Special Regime, will apply for the first fourth months of the 2020.

Taxpayers that take the moratorium, will be able to make the pending payment as follows: a) total debt payment through banking connectivity, or, b) on-account payments that allows you to manage your cash flow; this last one, may be executed by issuing the official payment receipt, available in the EDDI-7 tool, which may be filed and paid at any authorized entity. In the event that the taxpayer, after making the on-account payments, registers an uncovered amount, may be able to agree by October 15th, 2020, on a payment settlement that will be granted for up to a maximum of 6 months. Tax Authorities will issue a resolution that will establish the requirements and procedures for such application by April 30th, 2020.

As for Income Tax advanced payments, payment will be available through banking connectivity; however, for taxpayers who so wish, can make the payment by a reverse charge income tax return, without any interests and penalties.

In the case of importers that take the moratorium on the payment of the customs duties, payment will be determined by a resolution pending to be issued by the Customs Authorities.

VAT exemption in commercial leases

The owner and the tenant, who are registered in the Single Tax Registry, without requesting prior authorization, may apply the VAT exemption to the commercial leases, including in the section of “exemptions” of the invoice to be issued, the respective data of Law 9830 – Tax Relief Law in face of COVID-19.

 

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