IT PAYMENT EXEMPTION – NATURAL PERSONS

Decree No. 4.420 of January 18, 2021, issued by the President of the Republic, was published in Official Gazette 42.049 of the same date (the “Decree”). The Decree established that the natural persons residing in the country will pay Income Tax only for the net taxable income of territorial source obtained during fiscal year 2020 in excess of five thousand Tax Units (5,000 TU).

The natural persons who, by the date of entry into force of the Decree, have declared and paid the IT corresponding to fiscal year 2020 will be entitled to a fiscal credit for up to the amount paid. This fiscal credit may be assigned or may be used in subsequent fiscal years.

The taxpayers who do not file their final income declaration or file it out of the legal time limit will not be entitled to the exemption benefit. The same applies to the taxpayers who fail to perform the obligations established in the tax legislation.

Similarly, taxpayers who do not comply with the obligations established by tax regulations.

The Decree became effective upon publication of the same in the Official Gazette.

In order to access the Decree, please click here.

Should you have any question or comment or require further information, please contact the partner in charge of your account via email.