X

Legal Bulletin

logo

RULING OF THE CONSTITUTIONAL COURT

Ruled unconstitutional the prohibition for service suppliers against taking costs and expenses from their independent activities.

Ruling of the Constitutional Court C-668 of October 10, 2015

 

In constitutional review, the Court upheld that in accordance with the equity principle, the Congress cannot prohibit employees whose payments and deposits do not originate from labor relationships, from requesting the recognition for tax purposes of costs and expenses different to those permitted for salaried workers.

In its ruling, the Court stated that said prohibition was detrimental to the equity principle, as it disregards the real economic capacity of a group of taxpayers, assimilating them to salaried workers. Generally, salaried workers have a greater economic capacity than employees who render personal services at their own cost and risk.