By: Abg. Miguel Ángel Saltos, Mgs.
Object
The resolution regulates the self-withholding of Income Tax and its monthly payment by taxpayers, companies considered large taxpayers. Self-withholding is based on the effective tax rate determined according to the usual economic activity of each taxpayer.
Effective Tax Rate Determined by the Active Subject
The effective tax rate for self-withholding is defined based on the control processes completed by the tax administration, focused on the taxpayer’s usual economic activity.
Usual Economic Activity
To determine the percentage of self-withholding and classify the taxpayer in the corresponding economic sector, the usual economic activity registered in the Tax Administration cadastres is considered.
Tax Base for Self-Withholding
All monthly taxed income of companies qualified as large taxpayers must be considered for self-withholding. Income from certain sources is excluded, such as hydrocarbon exploration and exploitation contracts, contracts with government and social security entities, and those subject to special regimes or another self-withholding regime. If you cannot differentiate taxed income from exempt income, self-withholding will be calculated on the total income received monthly.
Self-Retention Percentage
The self-withholding percentage is established considering the Effective Tax Rate determined in the control processes by sector, segment and usual economic activity, and based on the value of the income tax caused in the previous fiscal year. Self-withholding percentages vary by economic sector and are detailed in specific ranges in the resolution.
Large Taxpayers subject to special regimes
Large taxpayer companies that are required to pay income tax under special regimes, such as the banana or agricultural sector, should not carry out the self-withholding described in this resolution for income subject to said regimes. Instead, withholding agents must apply general withholding rules. In addition, large taxpayer companies must detail in the sales receipt the income subject to special regimes to facilitate identification and corresponding withholding by withholding agents.
Surcharge
If the taxpayer does not make the required self-withholding, or does so partially, he or she must pay the amount not withheld with corresponding interest. In addition, a fine equivalent to 100% of the withholding not made will be imposed, in accordance with the provisions of article 21 of the Tax Code and article 50 of the Internal Tax Regime Law.
Settlement and payment
The declaration and payment of self-withholdings will be made using the same form used for income tax withholding at source. It must be submitted on the dates established in articles 102 and 254 of the Regulations for the Application of the Internal Tax Regime Law. The withholding receipt must be issued at the end of each month for all of the income taxed in that period.
Click to download Resolution No. NAC-DGERCGC24-00000003
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Contact information:
Abg. Miguel Ángel Saltos | Email: miguel.saltos@lince-saltos.com | Telephone: (+593 4) 2630313
