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DECREE OF THE MINISTRY OF FINANCE

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DECREE OF THE MINISTRY OF FINANCE

The Ministry of Finance modified the inflationary components of investments and payments for tax purposes

New inflationary components are established as of year 2016

 

Through Decree 777 of May 16th of 2017, the Ministry of Finance established new percentages of the inflationary component for the financial returns received by individuals, as well as for profits distributed by mutual funds.

Decree 777 established that for year 2016 it is understood that 76.46% of the value of financial returns or profits received by individuals, are not taxable income, either if they are received directly or through investment or mutual funds.

Furthermore, a 28.65% of interests or financial expenses incurred by individuals are not tax deductible.

Finally, the minimum percentage of presumptive interests over loans between companies and their shareholders was modified to 6.86%.