Regulation NAC-DGERCGC20-00000020 issued by the Internal Revenue Service and published on March 20, 2020 in the Official Registry Special Edition 459 established new rules to the income tax withholding regime:
- The following income tax withholding
rate was modified:
Concept Previous
rate
New
rate
Acquisition of all types of movable property of a tangible nature 1% 1,75% Payments that do not have a specific withholding rate 2% 2,75%
- It was clarified that the acquisition of goods of agricultural, poultry, livestock, beekeeping, bio aquatic, forest and meat origin, which are maintained in their natural condition, will be subject to 1% withholding regardless of whether an invoice or settlement for the purchase of goods or provision of services is issued.
- Additionally, it is clarified that this withholding rate (1%) applies to income from local production and marketing of agricultural activities, even if the taxpayer generating the income is subject to a special income tax regimen.
The new withholding rates are applicable beginning April 1st.
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