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TAXES, STAMP TAXES AND CONTRIBUTIONS PAID WOULD BE TAX DEDUCTIBLE

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TAXES, STAMP TAXES AND CONTRIBUTIONS PAID WOULD BE TAX DEDUCTIBLE

Corporate income tax 

As general rule, taxes, stamp taxes and contributions paid by the taxpayer will compute as tax deductible. 50% of the financial transaction tax (“GMF”), as well as the industry and commerce payroll tax would be considered as tax credit for income tax purposes 

 

100% of the taxes, stamp taxes and contributions (except to the ones set-forth by law, such as income tax or the equity tax) paid and that are related to the income-producing activity will be tax deductible. The deduction cannot be simultaneously treated as a cost or expense by the taxpayer.

Taxpayers will be able to compute the 50% of the GMF as well as 50% of the industry and commerce payroll tax paid as a tax credit against income tax. As from taxable year 2022, the tax credit will increase up to 100% of the GMF and the industry and commerce payroll tax effectively paid.