EXEMPTION FROM IT PAYMENT – NATURAL PERSONS

Decree No. 4.171 of April 2, 2020, issued by the President of the Republic, was published in Official Gazette No. 6.523 Extraordinary of April 2, 2020 (the “Decree”). According to the Decree, the annual income of territorial source obtained by natural persons residing in the country during fiscal year 2019 and with a normal salary or an income from the performance of their activities that by the end of said period does not exceed an amount equivalent to 3 minimum salaries, as in effect as of December 31, 2019, is exempt from payment of income tax (IT).

The natural persons who as of the date of the entry into force of the Decree have fully or partially paid the rate of income tax for the annual income of territorial source obtained in 2019 fiscal year will be holders of fiscal credits, up to the amount paid, which credits may be applied to subsequent fiscal years.

The Decree entered into force as from April 2, 2020.

In order to access the Decree, please click here.

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