The Internal Revenue Service (IRS) updated the personal expense projection form applicable for fiscal year 2023.

The new form includes a box to report the number of the employees’ dependents to achieve a higher tax reduction on the Income Tax.

The employee shall deliver the updated form to the employer in July.

In the month of October, taxpayers are required to fulfill the following tax obligations:

• Declaration of Value Added Tax (VAT). (*)
• Declaration of withholding tax on income. (*)
• Declaration of Outflow Tax (ISD). (*)
• Declaration and Annex of Special Consumption Tax (ICE). (*)
• Annex International Currency Movement (MID). (*)
• Simplified Transactional Annex (ATS). (**)
• Annex to the Report on Operations and Financial Economic Transactions (ROTEF).
• Foreign Assets Tax Declaration.
• Commercial Registrar Annex (REM).
• Notary Annex (NOT).
• Property Registrar Annex (REP).

Notes:

(*) Special taxpayers must submit and pay their declarations by the 11th day of each month, while other taxpayers will follow the ninth digit of their Taxpayer Identification Number (RUC). If the submission date falls on mandatory rest days or holidays, it will be moved to the next working day.

(**) The maximum submision date will be the following month based on the ninth digit of the RUC as follows:

On September 13, the Internal Revenue Service (SRI) reformed certain provisions concerning the Annex of Related-Party Transactions and the Comprehensive Transfer Pricing Report.

In the main, income taxpayers -who are not exempted from the application of the transfer pricing regime- that within the same tax period have carried out transactions with related parties for an amount exceeding US$ 3,000,000, must file the Schedule of Transactions with Related Parties.

If the amount exceeds US$10,000,000, income taxpayers shall also file the Comprehensive Transfer Pricing Report.

In the month of August, taxpayers must comply with the following tax obligations:

• Simplified Transactional Annex – Semiannual Simplified Transactional Annex for RIMPE

Registration by individuals and companies of the Simplified Transactional Annex, which will include monthly information on purchases or acquisitions, sales or income, exports or income obtained from abroad, canceled vouchers, and withholdings related to the business activity. The annex for the months of January to June must be submitted by August according to the ninth digit of the Tax Identification Number (RUC in Spanish).

• Registration of the semiannual VAT declaration by RIMPE – Entrepreneurs

From August 10 to August 28, based on the ninth digit of the RUC (Tax Identification Number), taxpayers subject to the regime “RIMPE – Entrepreneurs” must submit the VAT declaration for the first semester of the fiscal year 2024 (January to June).

• Payment of the Rural Property Tax

By August 16^th, individuals and companies who own properties located within the limits of rural areas must pay the second installment of the Rural Property Tax to the respective municipality where the property is located.

• Payment of Motor Vehicle Tax

Owners of private vehicles with a license plate ending in seven (7) must make the payment of the Vehicle Tax (IVM) by August 31 at financial institutions authorized by the IRS.

Additionally, taxpayers must comply with the rest of the monthly tax obligations according to the ninth digit of their RUC:

• Declaration of Value Added Tax (VAT).

• Declaration of Withholding Tax at Source.

• Declaration of the Foreign Currency Outflow Tax.

• Declaration and Annex of the Special Consumption Tax.

• Annex Report of Economic Financial Operations and Transactions.

• Annex International Currency Movement.

• Declaration of Foreign Assets Tax.