LOCTI Rules - Extensions, periods of time, and fractionation of payment of contributions
Ruling No. 015-003 of June 18, 2015 was published in Official Gazette No. 40,804 of December 7, 2015. Through said Ruling, the Board of Directors of the National Fund of Science, Technology, and Innovation (Fondo Nacional de Ciencia, Tecnología e Innovación - “FONACIT”) issued the Rules that regulate the formalities and procedures for the granting of extensions, periods of time, and fractionation of payment for purposes of complying with the duty to make contributions established in Title III of the Decree with the Status, Value, and Force of Law of Amendment to the Organic Law of Science, Technology, and Innovation (Ley Orgánica de Ciencia, Tecnología e Innovación – “LOCTI”) (the “Ruling
Following are the most important aspects of the Ruling:
1. The contributors of Science, Technology, and Innovation and their applications may, by way of exception, request the granting of extensions for the payment of contributions and obligations, provided that the legal period of time for delivering the contribution or filing the declaration has not elapsed.
2. The request for extension must be filed with the FONACIT Collection Management at least fifteen (15) business days before the end of the period for paying the contribution; said request must contain a clear explanation of the causes that prevent the normal performance of the obligation and must be accompanied by: i) last Income Tax Return; ii) photostatic copy of the registered articles of incorporation of the company and its latest amendments, including the designation of the current Board of Directors, and iii) photostatic copy of identity card of the legal representative of the company.
3. The extensions will only be granted when, in the judgment of FONACIT, the causes that prevent the normal performance of the obligation to contribute are justified and they may only be granted for periods of time not exceeding 90 calendar days; new extensions may be granted for up to a maximum period of 36 months, always provided that the causes that prevented the contributor from performing the obligation within the period of time initially granted are justified.
4. After the request has been filed with the relevant documents, the FONACIT Collection Management will review the contributor’s situation, prepare a report with its recommendations, and forward it to the Presidency for approval. The FONACIT’s President will decide about the extension requested within a period of ten (10) business days following its presentation by the Collection Management. Any request for extension not decided and notified within the aforesaid period of time will be deemed to be rejected.
5. Should the extension be approved, notice will be given to the contributor and the financing default interest will be calculated as from the end of the legal period of time for payment of the contribution. If payment is not made within the period of extension, default interest will accrue as from the date when the extension ended.
6. The FONACIT may allow a fractionated payment or a period of time for payment of the contributions by means of Payment Agreements, always provided that the causes that prevent payment are showed.
7. The payers of the contribution that require a payment agreement to be executed must file with the Presidency of FONACIT a request detailing the payment plans, accompanied by the documents specified in the Ruling.
8. After the request has been filed, the Collection Management of FONACIT has a period of thirty (30) business days for submitting its considerations to the consideration of the President of the FONACIT and the President is allowed a period of five (5) business days to approve the payment plans.
9. Should the payment plan be objected by the Collection Management, it will be notified to the contributor and the contributor will be required to present a new payment plan.
10. After the Payment Agreement has been executed, the contributor must irrevocably pay the installments established in the periods of time and conditions agreed. Failure to pay 2 installments will result in the immediate loss of the fractionation established in the Payment Agreement.
11. The payment plans may be recast upon the contributor’s request, only once, always provided that no breach of the Agreement has occurred.
12. After the payment facility has been approved, in order to guarantee the performance of the obligation, the debtor or a third party must grant in favor of FONACIT any of the following guarantees: bond, mortgage on real estate or chattel mortgage, or pledge.
The Ruling became effective on June 18, 2015.
In order to access the Ruling, please click here.
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