Executive Decree 251 on tax measures due to the state of national emergency

Due to the national state of emergency because of COVID-19, some articles of the Tax Code were modified to alleviate the economic impact.

Article 1 of Executive Decree 251 establishes that a term of 120 days as of March 20, 2020, is granted to pay taxes caused or due during said period and that are under the jurisdiction of the General Revenue Directorate (DGI). This applies to direct and indirect national taxes, rates, special contributions, and any other debt in money, liquid and enforceable for individuals and legal entities.

Exceptions to this are those whose obligation is generated as a withholding agent. Meaning:

  • Income tax to employees
  • Income tax to non-residents
  • ITBMS withheld to non-residents
  • ITBMS withheld by the state
  • ITBMS withheld by local withholding agents
  • Dividend tax
  • Property tax withheld by banks

Article 2 extends, until May 30, 2020, the period for filing the income tax returns of individuals or legal entities corresponding to the 2019 tax period.

Additionally, article 3 of this decree allows taxpayers who must pay the estimated income tax for the year 2020 to do so for an amount not less than 70% of the tax incurred in the income tax return for the period 2019.

On the other hand, article 4 establishes that during a state of emergency, the General Revenue Directorate (DGI) may take the necessary measures to guarantee that taxpayers comply with their obligations.

You can read the full Executive Decree 251 of 2020 here:

Executive Decree 251 of 2020

Related pages:

Published March 28th, 2020, as Laws on Tax by Johana Sum