The Internal Revenue Service (SRI) has established the rules for applying Executive Decree No. 1240, published in the Third Supplement of Official Register No. 395 on February 22, 2021[1].
We remind you that Executive Decree No. 1240 included the application of an income tax credit in the settlement of income tax under the microenterprise tax regime which the taxpayer is entitled to under tax regulations, and it extended the deadline for paying income tax for fiscal years 2020 and 2021.
The main provisions of the resolution are:
- Beneficiary taxpayers: Beneficiary taxpayers are those who meet the following conditions:
- As at January 31, 2021, they fall under and are part of the Microenterprise Tax Regime with respect to fiscal years 2020 and/or 2021; and
- They did not generate a profit in fiscal year 2020 (calculated before determining income tax), excluding for this purpose income and expenses attributable to business outside of the regime. To evidence this condition, they must file the annual Income Tax return for fiscal year 2020, identifying the amounts of income under the Microenterprise Tax Regime and its attributable costs and expenses, by the established deadlines.
- Deadline for filing and paying tax 2020: Those who meet the indicated conditions can file the accrued tax return and pay the tax corresponding to the first and second halves of fiscal year 2020 by November 2021, according to the ninth digit of their Taxpayer (RUC) Number, without generating fines or interest.
- Deadline for filing and paying tax 2021: Those who meet the indicated conditions will file their six-monthly returns for 2021 in July 2021 and January 2022. If the tax return is not filed by the indicated deadline, the corresponding fine will be generated.
- Interest and fines up to February 22, 2021: The interest and fines related to the tax of beneficiary taxpayers which have been paid before February 22, 2021 will not give rise to refund applications.
- Those who, before Executive Decree No. 1240 came into effect, had filed the accrued income tax return corresponding to the first and second halves of fiscal year 2020 without having paid the corresponding tax derived from said return, and who wish to be subject to this resolution, must file the corresponding replacement tax return, including the value of the fine and interest generated by February 21, 2021.
[1] Resolution No. NAC-DGERCGC21-00000012, published in the Third Supplement of Official Register No. 400 on March 1, 2021.
Editorial Board
