Through Law 189 of December 17, 2020, the Tax Code is amended, and a special income tax regime is created applicable to micro, small and medium-sized companies, business and entrepreneurs.
The modification of the Tax Code establishes a special rate regime from the fiscal period of 2020 for legal persons in accordance with the total annual income of micro, small and medium-sized companies, business and entrepreneurs.
Tax to be paid in accordance with Law 189:
If the total income is (in the case of legal persons):
- Up to US $ 11,000.00, the tax payable on the net taxable income will be 7.5%;
- from US $ 11,000.01 to US $ 36,000.00, you will pay 10%;
- from US $ 36,000.01 to US $ 90,000.00, 12.5%;
- from US $ 90,000.01 to US $ 150,000.00, 15%;
- from US $ 150,000.01 to US $ 350,000.00, 20%;
- and from US $ 350,000.01 to US $ 500,000.00, you will pay 22.5%.
In the case of natural persons, the net taxable tax will be paid in this way:
- Income of up to US $ 11,000.00, the tax payable on the net taxable income will be 0%;
- from US $ 11,000.01 to US $ 36,000.00, you will pay 7.5%;
- from US $ 36,000.01 to US $ 90,000.00, 10%;
- from US $ 90,000.01 to US $ 150,000.00, 12.5%;
- from US $ 150,000.01 to US $ 350,000.00, 17.5%;
- and from US $ 350,000.01 to US $ 500,000.00, you will pay 22.5%.
To obtain these benefits, natural or legal persons must be registered in the AMPYME Business Registry; Legal persons may not be the result of the division of a company into several legal persons, that is, affiliated, subsidiary or controlled by other legal persons. Nor will it apply to those who receive gross annual income that exceeds half a million dollars. Also, the shares or participation quotas of legal persons considered micro, small and medium-sized companies must be registered and their shareholders or partners, natural persons.
