CONSTITUTIONAL LAW THAT CREATES THE TAX ON LARGE PATRIMONIES (REPRINTED)

 

An Official Notice dated August 15, 2019 was published in Official Gazette No. 41.696 of August 16, 2019. Said Notice corrected, due to an error in the form, the Constitutional Law that Creates the Tax on Large Patrimonies (the “Law”), issued by the National Constituent Assembly and published in Official Gazette No. 41.667 of July 3, 2019.

The most significant modifications made include the following:

1. Article 1 of the Law was modified and it was established that the tax will be imposed on the net worth of natural and legal persons categorized as special taxpayers with a patrimony equal to or higher than 150,000,000 Tax Units (“T.U.”).

2. Article 11 of the Law was modified and it was established that the taxable event is understood to occur on September 30 of each year.

3. A new number was added to article 13 of the Law. It establishes that the property located in the country and owned by foreign diplomatic and consular missions is exempt from payment of the Tax on Large Patrimonies (“TLP”), to the extent and with the limitations established in the applicable international agreements and subject to reciprocity.

4. Article 15 of the Law was modified and it was established that the taxable base of the TLP will be the result of the addition of the total value of the property and rights, excluding the liabilities and the value of the charges and encumbrances on the property, as well as the exempt or exonerated property and rights.

5. It was established that the taxpayers categorized as special taxpayers and subject to the Law, for the first taxation period, will declare the value of their patrimony at the time of said declaration, without prejudice to the powers of supervision and determination conferred on the Tax Administration by the Organic Tax Code, according to article 16, number 3, article 20, article 22 and Temporary Provision Fifth of the Law.

6. It was established that the first taxation period of the Tax on Large Patrimonies will be generated on September 30, 2019.

 

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