Modifications proposed to Tax Reform Bill
13 julio 2018

On 6th July, the Executive branch and legislators introduced more than a thousand proposals to modify the initiative promoted by the government (Expte. N ° 20.580).

The Special Committee in charge of analyzing the bill will begin to study them as of Tuesday, 17th July. The president of the National Assembly -Carolina Hidalgo Herrera (Partido Acción Ciudadana – ruling party) – will define Monday, 16th July, which of the suggestions are admissible, so that the legislators can begin to vote every one of them from the following day.


Among the amendments proposed by the legislators, one from the Executive stands out, which modifies the article 30 of the bill. The intention of the government is to make the section more inclusive, so that e-commerce platforms also act as retaining agents for purchases of services via the Internet or digital platforms.


Dep. José María Villalta Flórez Estrada (Frente Amplio – ruling party ally) suggests eliminating the exemption to the services of transactions in the stock market, increasing the tax withholding up to a limit of 10% to the large taxpayers and taxing with a contribution of 30% to legal entities in general or 36% to companies that exceed US$ 440,900 in tax collection, or US$ 70,544,000 in income or assets. The reforms also propose adding a 5% tax to financial institutions, among other changes.


Opposition member Dragos Dolanescu Valenciano (Partido Republicano Social Cristiano) proposes to tax credits and loans if they are not used for paying previous debts.


The bill is under study by the Committee and has to be approved both in there and in the floor of the Assembly to become law. Legislators intend to pass the bill this year.


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