Summary.
The bill grants a moratorium until December 31, 2024, covering interest and surcharges arising from income tax, real estate tax, the business operation notice tax, the tax on transfers of movable goods and the provision of services (ITBMS), the selective consumption tax (ISC), and the single fee payable by legal entities. It would also cover individuals, legal entities, and real estate with overdue taxes, fees, or special contributions in administrative or enforced collection when the proposed law takes effect. Eligibility requires payment of all outstanding principal balances, including fines. Interest, surcharges, and penalties associated with the enforcement collection process would then be waived.
Withholding agents owing taxes withheld for periods through June 2024 in respect of income tax and the educational insurance contribution could, exceptionally, discharge those balances through direct payment to the General Directorate of Revenue (Dirección General de Ingresos) until December 31, 2024. The bill empowers that Directorate, within the Ministry of Economy and Finance (Ministerio de Economía y Finanzas), to inspect, audit, and issue interpretive criteria concerning tax rules or other rules requiring it to act.
By amending article 21 of Cabinet Decree No. 109 of May 7, 1970, the bill retains the confidentiality duty of the Directorate’s officials and employees. It also directs the Directorate to publish tax balances that have remained overdue for more than twelve (12) months in a local newspaper and on its website, identifying the responsible taxpayer by name and taxpayer registration number. Information obtained in the exercise of its powers may be used for statistical purposes to improve operating processes, provided taxpayers’ identities remain confidential.
The bill restores article 737 of the Tax Code (Código Fiscal), setting limitation periods for collection of the tax and withheld amounts addressed there, as well as for claims to recover excess or improper payments. It subjects the lapse of a refund application to the Judicial Code (Código Judicial) and authorizes the Directorate to examine, challenge, and demand unpaid taxes when a refund is requested. It restores article 738, which identifies acts interrupting a limitation period. It further restores paragraph 18 of article 1057-V, concerning the period for collecting the tax addressed there and interruption of that period.
It also restores article 1073-A of the Tax Code. At a taxpayer’s request, tax credits could be offset automatically against tax debts or fines up to twenty-five thousand balboas (B/. 25,000.00), without a prior audit or default charges. The provision addresses the credit available to specified individuals and permits the Directorate to offset qualifying credits on its own initiative after three (3) months. Finally, the bill repeals provisions of Law 76 of 2019 and article 14 of Law 208 of 2021, as amended by Law 401 of 2023. The related public bodies are the Directorate and the Ministry; the measures would concern taxpayers, withholding agents, real estate owners, and legal entities.
What it proposes.
- Moratorium for payment of national tax liabilities.
- Tax collection, limitation periods, and offsetting of tax credits.
- Confidentiality and publication of information on tax arrears.
Who it would affect.
- Individuals and legal entities with overdue tax liabilities.
- Real estate owners with liabilities under collection.
- Withholding agents with unpaid withheld taxes.
- Officials and employees of the General Directorate of Revenue.
Key points.
- Grants a moratorium until December 31, 2024, for interest and surcharges on the listed taxes and single fee.Art. 1
- Extends relief to debts under administrative or enforced collection if principal balances and fines are paid, waiving interest, surcharges, and enforcement collection penalties.Art. 2
- Allows withholding agents to pay specified outstanding balances directly to the General Directorate of Revenue until December 31, 2024.Art. 3
- Empowers the General Directorate of Revenue to inspect, audit, and issue interpretive criteria.Art. 4
- Amends confidentiality rules to require publication of specified arrears and permit statistical use of information while protecting taxpayers’ identities.Art. 5
- Restores Tax Code rules on limitation periods for collection and refunds, and on interruption of those periods.Arts. 6-8
- Restores the offsetting of tax credits at a taxpayer’s request and, under stated conditions, on the Directorate’s own initiative.Art. 9
- Repeals provisions of Law 76 of 2019 and Law 208 of 2021.Art. 10