On Wednesday, August 15th, legislators of the National Assembly presented more than 800 amendments to the Special Committee that is working on the Executive Branch’s tax reform bill. The government also intervened and suggested adopting a new alternative bill to the one being considered by the Assembly. The Committee will begin the study of the proposals next Tuesday, August 21st. Once passed by the Committee, the bill will have two votes on the floor before it becomes law.

Among the amendments presented, those that seek not to exempt the securities market from the payment of taxes and the two amendments to article 30, which establishes financial intermediaries as withholding agents of Value Added Tax (VAT), stand out. Regarding the article 30, the first amendment establishes that any natural or legal person – not domiciled in the country – may act as a withholding agent. The second amendment makes the issuers of the means of payment responsible for the tax declaration of the taxes they withheld.

The modifications presented also aim to oblige merchants to accept electronic means of payment without exception and to set a 5% fee on the profits of private entities authorized for financial intermediation. In addition, it authorizes the Ministry of Economy to lower the fees for debit and credit cards.