Legal Bulletin


Long-term capital gains (“LTCG”) subject to 10% would be maintained.  LTCG treatment applies to profits derived from the sale of fixed assets held for two (2) years or more, liquidation of companies that have been incorporated for more than two (2) years, among others.

The Government does not propose changes to LTCG regime. In the case of outbound payments of items of income characterized as LTCG, a special capital gains withholding of 10% would be introduced.  

Short-term capital gains (“STCG”) derived from the sale of movable assets or fixed assets held for less than two (2) years, would continue to be subject to the ordinary income tax.