Registration, Contributions, Withholdings, Parafiscal Contribution Payment, Clearance /Formal Duties
Administrative Ruling No. OA-2016-07-240 of July 11, 2016, issued by the President of the National Institute of Socialist Training and Education (Instituto Nacional de Capacitación y Educación Socialista - “INCES”) (the ‘Ruling’), was published in Official Gazette No. 41.046 of December 6, 2016. The Ruling establishes the duties and obligations that have to be performed by private and public work entities in relation to the registration, contribution, withholding, reporting, delivery (enteramiento) of the payments of parafiscal contributions, as well as to the processing and issue of the INCES quarterly clearance certificate.
The work entities bound to make the aforesaid parafiscal contribution must be registered, within a period of 45 business days following the date of their incorporation, with the National Registry of Parafiscal Contributions (Registro Nacional de Contribuciones Parafiscales - “RNCP”). The work entities organized before the entry into force of the Ruling, must be registered within a period of 45 business days following the publication of the Ruling in the Official Gazette.
The work entities of the private sector and the State entities with an income of their own, which are self-managing entities and which employ 5 workers or more are bound to contribute 2% of the normal monthly salary paid to them. They must deliver such contribution to the INCES within a period of 5 days following the end of each quarter. As a control measure, they must also keep a detailed report of the contributions made, which must be accompanied by the payment of the current quarter, in relation to the payroll, and it must be sent to the INCES in digital form within a period of 10 business days following the end of each quarter.
The work entities of the public and private sectors must withhold the contribution of 0.5% of the profit-sharing, Christmas or year-end bonuses paid to the workers and employees at the relevant time of payment, either through payment of termination benefits for cessation of activities at the work entity or through fractionated payments corresponding to profit-sharing, Christmas or year-end bonuses. After the withholding has been made, it must be delivered to the INCES within a period of 10 days following that when the payment order was made. Also, a detailed report of the withholdings made in relation to the payroll must be kept upon the elapsing of 10 days after the delivery, which report must be sent to the INCES in digital form within a period of 5 days following delivery.
With respect to the Tax Clearance Certificate, the Ruling prescribed that through the auditing proceeding, the acting officer will place on record the performance of the obligations and the report of payment made on account of tax contributions, by means of the relevant clearance certificate (solvencia), which is mandatory for all work entities and must remain in effect and at a visible place of the establishment of the work entity.
The Ruling also established that pursuant to the provisions of the INCES Law, the matters not regulated in the Ruling will be governed by the Organic Tax Code, in the matters relating to penalizing proceedings and to unlawful acts connected with formal requirements to be met and with substantial matters.
The Ruling became effective upon publication in the Official Gazette.
In order to access the Ruling, please click here.