On 20 February 2017, the Internal Revenue Service (also known as Servicio de Rentas Internas(SRI)) published Resolution NAC-DGERCGC17-00000121 in the Official Gazette. The resolution establishes the procedure to request a tax refund of the income tax paid in excess. The main provisions of the resolution are described below.
- Taxpayers may request a tax refund of the income tax paid in excess provided that their economic activity had been seriously affected during the tax year and the amount of income tax paid exceeds their respective average effective tax rate (TIE).
- The TIE established for the tax year 2016 is 1.7% for companies and 1.2% for individuals and inheritances, subject to maintaining accounting books.
- The tax refund process requires a previous comparison between the TIE calculated for 2016 and the general TIE.
- The tax refund must be requested using the forms authorized by the SRI.
- These provisions are not applicable to financial institutions, credit card companies and other financial entities subject to the control of the supervisor of banks.
The resolution is applicable as from its publication.
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