Three new tax laws were recently gazetted which aim essentially to:
- Create tax incentives to promote and foster private foreign investment;
- Support tax fairness amongst taxpayers by revising the Personal Income Tax Code;
- Prop up a special tax debt settlement program; and
- Provide tax-collecting efficiency to the State and the tax administration.
I. Presidential Decree 15/2016, of 17 November 2016
Approves the Tax Benefits and Incentives Code (CBFSTP)
Having as its main objective to attract private foreign investment, in order to develop and diversify the national economy, this statute addresses several issues such as benefits on the importation of goods, Personal Income Tax, Stamp Duty, Real Estate Conveyance Tax as well as relief and benefits for specific investments in such sectors as Agriculture, Agro-industry, Livestock and Fishing sector, and Hospitality and Tourism, among others.
II. Presidential Decree 16/2016, of 17 November 2016
Approves amendments to the Personal Income Tax Code (CIRS)
The Personal Income Tax Code, as approved by the Law 17/2008, 31 de December 2018, was amended as follows:
- Updating the aggregation tax rates for Categories A, B and C (respectively, Employment and/or Pension Income; Business and Professional Income; and Capital Income);
- Changing the statutory definition of “Dependants” as an element to be in deductions related to the taxpayer's personal circumstances.
III. Presidential Decree 18/2016, of 17 November 2016
Approves a tax base broadening and requires tax-related information
The tax base was extended to reduce the risk of fraud and tax evasion, improve fiscal supervision and increase tax revenue collection. On the other hand, all licence applications submitted to Public Authorities have to be accompanied by a tax compliance certificate issued by the Tax Administration.
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