Tax News February 2025

The tax landscape continues to evolve, and staying up-to-date with changes is key to making better decisions. In this Tax News, we'll tell you about the most relevant fiscal updates for the month of February in various countries in the region: from new taxes to adjustments in key regulations. If your company operates in any of these markets, this information will be of great use to you.

Index

• Mexico
• Costa Rica
• Colombia
• Chile
• Panama
• Peru

Mexico

Amendment of Tax Miscellaneous Resolution Rule 9.22 “Application of the tax stimulus in declarations”

Second Modification Resolution to the Miscellaneous Tax Resolution for 2025 and Annexes 1, 1-A, and 9 First Anticipated Version

Rule 9.22 has been modified to clarify the application of the tax incentive provided for in the Thirty-Fourth transitory provision of the Federal Revenue Law (LIF). Until it is directly implemented in the Declarations and Payments Service, an alternative procedure is established so that taxpayers can access this benefit.

Procedure for requesting tax stimulus

Since the stimulus is not yet enabled in the declaration forms, taxpayers will need to request the generation of the FCF (payment line) through the SAT portal. To do this, they must follow these steps:

1. Log in to the SAT Portal using your RFC and password.
2. Go to section Procedures and Services > More procedures and services > Compliance tools .
3. Select the option Present your clarification, guidance, service, or request and subsequently, Submit requests or notices .
4. Within the form, in the section Service Description , select the tab Procedure and select the tag LIF DYP stimulus application .

Information required for the application

To complete the request, taxpayers must provide the following information:

1. Tax information Type of contribution, concept, tax year, and period in which the stimulus applies.
2. Declaration under penalty of perjury Affirmation that they comply with the requirements of the Thirty-Fourth transitory provision of the LIF. They must also indicate the amount of contribution, update, surcharges, and applicable fines.
3. Amount of the tax stimulus Specification of the benefit to be applied.

Presentation of the statement after payment of the FCF

Once the payment using the capture line has been made, the taxpayer must submit the corresponding declaration within the next 48 hours. To do this, follow the following procedure:

1. Log in to the SAT portal www.sat.gob.mx ).
2. Select the section Procedures and Services .
3. Choose Statements for people o Business statements , as applicable.
4. Access the option Provisional and final o Annual .
5. Select the tax form according to the applicable tax regime.
6. Complete the statement, capturing or validating the pre-filled data.
7. Verify that the tax and its surcharges match the answer obtained in the clarification request.
8. In the section Pay o Payment determination , record the amount previously paid and the date of payment.
9. Save the data and proceed with filing the return until it is submitted.

Conclusion

The amendment to Rule 9.22 of the Miscellaneous Tax Resolution establishes a detailed procedure for taxpayers to apply the tax incentive provided in the Thirty-Fourth transitory article of the LIF. Until this functionality is enabled within the SAT's Declaration and Payment Service, taxpayers must follow a specific process to request the payment line and subsequently file their return with the stimulus applied.

It is crucial that taxpayers carefully follow each step and submit the declaration within the established 48-hour deadline after payment to avoid any issues in applying the tax benefit.

Costa Rica

BILL – “Presentation of the Transfer Pricing Information Return”

Resolution MH-DGT-RES-000-2025

Annual Transfer Pricing Declaration

Taxpayers indicated in the regulations must submit an annual transfer pricing informative declaration to the Directorate General of Taxation. This declaration must follow the model and instructions established in Annexes 1 and 2 of the corresponding resolution.

Taxpayers required to file a return

In accordance with Article 81 of the Income Tax Law Regulations, taxpayers of the profit tax who meet at least one of the following conditions are obligated to submit an annual transfer pricing information return:

• Perform domestic or cross-border transactions with related companies and are considered national major taxpayers or belong to the free zone regime.
• Your transactions with related companies, whether individually or jointly, exceed the equivalent of 1,000 base salaries in the corresponding fiscal year. The definition of «base salary» is found in Article 68 of the Tax Code and corresponds to the monthly salary of the «Office Clerk 1» position according to the General Budget Law of the Republic.

Submission deadline

The filing of the transfer pricing information return must be made within three months following the close of the taxpayer's authorized tax period. This return must include all transactions carried out with related entities during the period corresponding to corporate income tax.

Declaration Form

The required form for filing the informative return will be available in the virtual office of the TRIBU-CR system. The form template and its instructions can be consulted in annexes 1 and 2 of the resolution. Additionally, the Tax Administration has the authority to modify the format and instructions of these forms to improve tax control. Such modifications will be published on the website of the Ministry of Finance, without the need to issue an additional resolution.

Methods for filing the declaration

The transfer pricing informative return must be submitted exclusively through the virtual office of the TRIBU-CR system. Any return submitted through other means or formats will be considered as not filed.

Responsibility and penalties for non-compliance

If the declaration is not filed within the established deadline and the cause is not attributable to the Tax Administration, the taxpayer will be responsible for the delay. In case of total or partial failure to provide the information, the Tax Administration will initiate an administrative infringement proceeding in accordance with Article 150 of the Tax Code and Article 268 bis of the Tax Procedure Regulations. The administrative infringement is defined in Article 83 of the Tax Code.

COLOMBIA

Special Tax for the Catatumbo region

DECREE NUMBER –0175 of February 14, 2025

Tax Creation

The Special Tax for the Catatumbo region is a temporary levy that taxes the extraction of hydrocarbons and coal within national territory. Its application occurs at the moment of the first sale or in the export process of these goods, as stipulated in the corresponding decree.

Taxable event and imposition of tax

The tax is generated in two main situations:

1. The first sale of hydrocarbons and coal within or from the national territory.
2. The presentation and acceptance of the application for an export shipping permit.

The products affected by this tax are defined by their tariff codes:

• 27.01: Coal, briquettes, ovoids, and similar solid fuels derived from coal.
• 27.09: Crude petroleum oils or oils obtained from bituminous minerals.

The tax will be incurred at the following times:

• For internal sale or from the national territory, upon issuance of the invoice or, failing that, at the time of the first delivery.
• For export, in the presentation and acceptance of the shipping permit application.

It should be noted that crude petroleum or bituminous mineral oils (heading 27.09) received by the National Hydrocarbons Agency as payment of royalties are not subject to tax at the time of sale, but only upon export.

Taxable amount

The taxable base of the tax shall be determined according to the type of transaction:

• In sales within or from national territory, the value of the sale will be the taxable base.
• For exports, the FOB value of the exported products will be considered in pesos. If the value is expressed in U.S. dollars, it will be converted to Colombian pesos using the Market Representative Exchange Rate (TRM) of the day the shipping authorization request is accepted.

When the same person extracts hydrocarbons or coal and also exports them, the tax will be levied only once, using the FOB value of the export as the taxable base.

Tax rate

The tax will be levied at a rate of 1% on the sale or export value for the following products:

• 27.01: Coal, briquettes, ovoids, and similar solid fuels derived from coal.
• 27.09: Crude petroleum oils or oils obtained from bituminous minerals.

Passive subjects and liable parties

Natural or legal persons making definitive exports or selling hydrocarbons and coal within the national territory will be subject to the tax, in accordance with the provisions of the decree.

Tax collection

The tax payment will be made as follows:

1. In case of export, the exporter must pay the tax through the Official Payment Receipt or the mechanism determined by the DIAN, at the time of presentation and acceptance of the export authorization application.
2. For sales within or from the national territory, payment shall be made within the first five business days of each month, consolidating the operations of the previous month.

In case of discrepancies between provisional and definitive data in the export declaration, the following procedure will be followed:

• If the final FOB value is greater than that declared in the shipping authorization request, the outstanding tax will be settled and paid within ten business days.
• If the definitive FOB value is lower, a refund of the overpayment may be requested, attaching the relevant documentation.

The application of these provisions will take effect on the fifth business day following the publication of the decree, affecting all requests for export authorization submitted and accepted during the effective period of the measure.

CHILE

Modification Introduced to Article 10 of the LIR

CIRCULAR N°11.- 299913.2024 GE, dated January 30, 2025

Scope of the Additional Tax on the Disposal of Rights

Paragraph three of Article 10 of the LIR establishes that income obtained by a seller who is not a resident or domiciled in Chile, derived from the sale of social rights, shares, quotas, bonds, or other securities convertible into shares, is subject to the additional tax under No. 3 of Article 58 of the LIR. This also applies to the sale of other rights representing the capital of a foreign legal entity or ownership rights over any type of foreign entity or asset.

Indirect Sale of Chilean Underlying Assets

Within the three cases established in the third paragraph of Article 10 of the LIR, letter c) refers to the indirect sale of underlying assets in Chile. In this case, the additional tax is applicable when the transferred securities or rights were issued by an entity located in a territory with a preferential tax regime, according to Article 41 H of the LIR. Furthermore, for the application of the tax, it is sufficient that any of the underlying assets is included in the assets of the foreign entity, regardless of its value or proportion.

Modification of Applicable Exception

The reform clarifies that the exception to the application of the additional tax requires proof of two conjunctive conditions, indicated in letters (A) and (B) of paragraph c) of the third clause of Article 10 of the tax code. The amendment affects letter (A), specifying that the participation or benefit can be direct or indirect and under any title. This means that, in order to determine the exception, it must be evaluated whether a person domiciled or resident in Chile holds any type of participation in the foreign company whose shares are being transferred.

Update to Circular No. 14 of 2014 Instructions

The legal modification involves updating the instructions contained in Number 3 of letter B) of Number 1) of Title II of Circular No. 14 of 2014. It is established that the additional tax applies when the disposed of securities come from an entity located in a territory with a preferential tax regime, without considering the proportion that the underlying assets in Chile represent of the total disposed of securities.

Conditions for Application of the Additional Tax

For the income derived from the sale to be exempt from the additional tax, the following two conjunctive conditions must be met:

1. Letter (A): There must be no persons domiciled or resident in Chile who are owners, shareholders, or beneficiaries of 5% or more of the shares, quotas, or rights that have been transferred.
2. Letter (B): Partners, shareholders, owners, or beneficiaries who directly or indirectly control 50% or more of the capital or profits must be residents of jurisdictions that do not have a preferential tax regime, pursuant to Article 41 H of the Income Tax Law (LIR).

Accreditation of Conditions

The transferor, its representative in Chile, or the transferee must provide the Service with proof of the identity of all partners, shareholders, or beneficiaries of the foreign company, including their respective ownership interests and the domicile or residence of each. If both conditions are met, the sale will be subject to the additional tax only if the requirements of Article 10, paragraphs 1 or 2, are met. If none of the three taxable events is verified, the income obtained will be considered to be from a foreign source and will not be subject to the 35% additional tax.

Panama

FORM 1119 V:1 “AFFIDAVIT OF RETENTIONS SEM” IS ADOPTED, AND TAX CODE 958 IS ENABLED WITHIN THE “PAYMENTS - INTERNATIONAL TAXATION” SLIP”

Resolution No. 201-1394 of February 05, 2025

5% Withholding for SEM Companies

Article 23 of Law 41 of August 24, 2007, as amended by Article 11 of Law 57 of October 24, 2018, regulates income tax for companies that hold a Multinational Enterprise (SEM) Headquarters License. It provides that taxpayers who receive services or other benefits from an SEM must withhold a rate of 5% on the amount to be remitted, provided that such services contribute to the generation or preservation of income from Panamanian sources and have been treated as deductible expenses.

Income Tax for Foreign Companies Providing Services to SEM Companies

The same regulations establish that individuals or legal entities domiciled outside Panama that provide services to an SEM company shall be subject to income tax to the extent that such services affect the generation or preservation of income from Panamanian sources. In such cases, the SEM company must withhold 5% on 50% of the amount to be remitted to the foreign company. In addition, Article 18 of Law 57 of October 24, 2018, provides that these provisions take effect as of January 1, 2019.

Adoption of Form No. 1119 V:1 for SEM Withholding Declaration

Based on the foregoing, the Director General of Revenue of the Ministry of Economy and Finance resolves the following:

1. Adopt Form No. 1119 V: 1 SEM Withholding Affidavit, which will be used for the presentation of the withholdings contemplated in article 23 of Law 41 of August 24, 2007, as amended by Law 57 of October 24, 2018.
2. Enable the use of Form No. 1119 V: 1, starting from the effective date of the resolution, to report the information corresponding to fiscal year 2019 and subsequent years.
3. ADVISE all taxpayers and users of this form that it will be submitted online through the E-Tax 2.0 System of the General Directorate of Revenues of the Ministry of Economy and Finance.
4. ENABLE the use of the following tax code contained in the Tax Payment Slip titled “INTERNATIONAL TAXATION PAYMENTS»: * Code 958 — SEM Withholdings
5. TEMPORARILY ALLOW taxpayers to manually add Code 958 to the INTERNATIONAL PAYMENTS-TAXATION form corresponding to “SEM Withholdings,” according to the format that accompanies this Resolution, until existing stock is depleted and forms with the code are printed.

Peru

Deductibility of Expenses and Application of Tax Credit on VAT for Acquisitions Financed with Non-Reimbursable Resources from the PAI Entrepreneurial SME Fund

REPORT NO. 000022-2025-SUNAT/7T0000, Published February 19, 2025

SUBJECT:

In relation to the acquisition of goods and services made with money received as non-reimbursable funds by beneficiary companies of the Entrepreneurial MSME Fund of the Internationalization Support Program (PAI), the following queries are made:

1. Is the amount paid for the acquisition of goods and services considered a deductible expense for income tax purposes?
2. Can the IGV paid on the acquisition of goods and services be used as a tax credit?

ANALYSIS:

1. Applicable regulations for non-refundable resources of the MIPYME Emprendedor Fund

The regulations governing the transfer of non-reimbursable resources to beneficiary companies of the SME Entrepreneur Fund for the execution of the PAI do not establish special tax treatment regarding deductible expenses and tax credits. Therefore, the general regulations of Income Tax (IR) and General Sales Tax (IGV) apply.

2. Provisions of the PAO Operating Regulations

The Operational Regulations of the PAO state the following:

1. Non-reimbursable resources are exclusively allocated to co-financing the eligible expenses of each component of the ratified Internationalization Initiatives, as provided for in articles 21, 27, 33, and 39 of the regulations.
2. Beneficiaries must meet the requirement of not having inadequately managed a completed or ongoing project that leads to a sanction or the return of granted resources.

Despite the fact that the granted resources have a specific purpose, the regulations allow for the possibility that, due to inadequate management, this purpose may not be met.

3. Deductibility of Expenses for Income Tax

Article 37 of the Income Tax Law establishes that, to determine the net income of the third category, expenses necessary to produce it and maintain its source may be deducted, provided that the deduction is not expressly prohibited by law. Furthermore, for expenses to be considered necessary, they must meet criteria of normality and reasonableness in relation to the taxpayer's income.

6. Principle of Causality and Deductibility

According to Report No. 26-2023-SUNAT/7T0000, the principle of causality applies to the deductibility of expenses, allowing those necessary for the generation and maintenance of taxable income sources to be deductible, unless there are express limitations or prohibitions. In this context, the origin of the funds used to finance expenses is not relevant for determining their deductibility; what matters is the destination of the resources.

Consequently, the acquisitions of goods and services financed with non-reimbursable resources from the Entrepreneurial SME Fund of the PAI are deductible to the extent that they are necessary for the generation and maintenance of the taxable income source and comply with the criteria of normality and reasonableness.

5. Application of Tax Credit to IGV

Article 18 of the VAT Law establishes that tax credit corresponds to the VAT indicated on payment receipts for the acquisition of goods, services, and construction contracts, or the VAT paid on the import of goods or services provided by non-domiciled individuals. For an acquisition to grant the right to tax credit, it must meet two main requirements:

1. To be allowed as a business expense or cost according to income tax legislation.
2. Intended for operations subject to VAT.

6. Tax Credit Requirements According to the VAT Law Regulations

Item 1 of Article 6 of the IGV Law Regulations indicates that the following are entitled to tax credit: acquisitions of goods and services used in the production of goods or the provision of services, fixed assets, goods acquired for sale, and other goods and services necessary for carrying out taxable operations.

7. Final Considerations on Tax Credit

There is no specific limitation on the use of tax credit for acquisitions financed with resources from state grants. Therefore, the VAT paid on acquisitions of goods and services with non-reimbursable resources from the PAI's MIPYME Emprendedor Fund can be used as tax credit, provided that the aforementioned legal requirements are met.

The tax treatment of non-refundable resources from the MIPYME Emprendedor Fund follows the general regulations of Income Tax (IR) and Value Added Tax (IGV). Expenses financed with these resources may be deductible as long as they comply with the principles of causality, normality, and reasonableness. Likewise, the IGV paid on acquisitions financed with these funds can be used as tax credit, to the extent that the established legal requirements are met.

CONCLUSIONS:

In relation to the acquisitions of goods and services made with money received as non-reimbursable funds by beneficiary companies of the Entrepreneurial SME Fund of the PAI:

1. The amount paid for such acquisitions is considered a deductible expense for income tax purposes, provided that these are necessary for the generation and maintenance of the source of third-category income taxed with said tax, and as long as such expenses also meet the criteria of normality and reasonableness, among others.
2. The IGV paid on the acquisition of goods and services can be used as a tax credit to the extent that the requirements established in Articles 18 and 19 of the IGV Law and numeral 1 of Article 6 of the IGV Law Regulations, among others, are met.