The Tax Authority recently released a communication regarding a third publication of new effective income tax rates for large taxpayers, in connection with 79 economic activities, according to the business sector to which they belong, based on the analyzed information of such activities corresponding to fiscal years of 2016, 2017, 2018 and 2019.
Said publication is complementary to the ones announced by the tax authorities, on June 13 and August 1, which in total currently correspond to 203 economic activities and their effective income tax rates.
The 79 economic activities are part of the following 5 economic sectors:
- Corporate and business management (new);
- Manufacturing industries;
- Mass media information (new);
- Other services except government activities (new);
- Business support services;
- Waste management and remediation services;
- Health and social work services (new);
- Financial and insurance services;
- Real estate services;
- Leasing services of tangible and intangible property;
- Professional, scientific and technical services (new);
- Transportation; and
- Postal and storage services.
Within said economic sectors, telecommunications, food and real estate services industries are included.
Therefore, the Tax Authority confirms its perception of risk in taxpayers who carry out the aforementioned economic activities, and makes them an invitation in order to consult and compare the effective income tax rate against their own corporate tax rate.
If applicable, taxpayers should correct their own tax situation by filing an amendment return in order to minimize the possibility of an audit or deep review by the tax authorities aimed at verifying the correct compliance with their tax obligations.
It is important to perform a preventive tax review in connection with the effective income tax rates parameters, as well as to assess the reason for the differences determined between the Tax Authority and the taxpayer.
The above based on the advice required in order to correct the tax situation of the taxpayer, or support compliance with their tax obligations in the event of an audit by the tax authorities, in addition to filing the respective legal means of defense, if necessary.
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