July and August Tax News

Index

Chile

Panama

Costa Rica

Colombia

Mexico

Peru

Chile 

Turnaround Period and Modifications Introduced to Article 69 of the Tax Code by Law No. 21,713 

Circular No. 32 dated 04.17.2025 

I. Instructions on the Subject Matter 

1. Concept, objectives, and general effects of the term of office 

• Procedure by which taxpayers who cease their activities must pay the derived taxes, obtaining the Certificate of Cessation of Business granted by the SII. 

• Seek to review the self-assessment, verify the documentation, and remit the resulting taxes, in addition to determining those not included. 

• Allows the SII to identify inactive taxpayers and update its database. 

• Once the term is accepted, the SII cannot subsequently audit, except in cases of simplified procedure. 

2. General procedure for concluding a transaction 

2.1 Taxable Contributors 

• All taxpayers who cease activities subject to taxes must give notice, except for corporate transformations, mergers, contributions of assets and liabilities, dissolutions with concentration in a legal entity, taxpayers who maintain another activity, those who only receive second-category income, transporters in specific situations, and entities with a RUT (tax identification number) without commencement of activities. 

• A change in business or activity does not constitute a cessation of business. 

2.2 Term: The notice must be given within two months of the cessation of activities. 

2.3 Notice Form 

• The procedure is carried out through an electronic tax folder using a form accompanied by a final financial statement and other supporting documents. 

• In exceptional cases (lack of telecommunications, electricity, or in disaster areas) it may be presented in physical format. 

2.4 Payment Schedule for Issuance by the SII 

• The Service has six months to review background checks, verify debts, remit taxes, and certify. 

• This period may be extended by an additional three months if there is new background information, subsequent contributions, or false statements, which must be notified by a substantiated resolution. 

2.5 Procedure Completion 

• Upon the completion of the review deadlines, the official certifies the result. 

• The process concludes with the certification of cessation of operations once tax payments have been credited. 

• If taxes are not paid on time, the submission is deemed accepted under the doctrine of positive silence (Law No. 19,880). 

• If supporting documents are missing, the taxpayer will be notified to correct the omission within five business days. If this is not done, the request will be deemed invalid by a reasoned decision. 

Simplified term of operation procedure 

3.1 Subjects: Intended for taxpayers registered in the Propyme or Propyme Transparente regime. 

3.2 Requirements: A public deed in which partners, shareholders, or co-owners assume joint and several liability for outstanding taxes must be attached. 

3.3 Issuance of the draft 

• The SII must file within one month of the request, certifying the termination of operations with tax payment. 

• Exceptionally, you may carry forward losses or audit in six months, extendable by three. 

4. Effects on partnersEach partner, shareholder, or co-owner is liable for the entire debt, without the benefit of division. 

4. Penalties for failure to notify of business termination 

• Omission is penalized differently depending on whether it forms an immediate tax base. 

• If it does not constitute immediate grounds: art. 97 No. 1 CT. 

• If it constitutes an immediate basis: art. 97, No. 2, sub. 3°. 

• Furthermore, there is a penalty for late declaration (Article 97, Number 2, Paragraph 1) and for late payment of VAT (Article 97, Number 11). 

5. SII's Oversight Powers 

1. Enabling circumstancesThe SII can summon, settle, and issue assessments when a taxpayer does not notify of the cessation of activities, fails to file returns for 18 monthly periods or 2 tax years, omits mandatory returns, or files returns with no operations within the same timeframe. 

5.2 Procedure 

• The procedure begins with a summons (Art. 63 CT). 

• The taxpayer can rectify by submitting the omitted notice; if they fail to do so, the SII will assess and issue a payment. 

• Recourse is admissible under articles 123 bis and 124 of the Labour Code. 

• These administrative acts enjoy the presumption of legality and enforceability (Art. 3 Law No. 19.880). 

5.3 Prescription 

• The notified summons extends the statute of limitations in Articles 200 and 201 of the Labor Code by one year. 

• This increase applies to the company as well as partners, shareholders, or co-owners. 

Procedure for declaring the legal presumption of business closure 

• The cessation of business is presumed when there are six consecutive periods without monthly declarations, and the taxpayer has no profits, assets, or outstanding tax debts. 

• The SII can verify through calls, emails, or visits. 

• Six months after the last unanswered check, a reasoned resolution is issued presuming the cessation of operations. 

• It also applies with 36 periods with no operations, continuous or not. 

• The presumption is simply legal and admits evidence to the contrary. 

• The resolution may be reviewed in accordance with Article 6, letter B, number 5, Article 123 bis, and Article 124 of the Labor Code. 

7. Special Situation for Exporting Taxpayers 

• Article 36 of the VAT Law obliges exporters who cease business operations to prove exports equivalent to the VAT refunded in the prior 36 months. 

• If not met, they must proportionally refund what they received. 

• In a bankruptcy liquidation, there is no obligation to repay. 

• In reorganizations, the continuing company maintains the authorization and obligations of the benefit if it expresses its will to continue the project. 

II. Repeal of Prior Instructions 

• Circular No. 66 of 1998 is partially repealed (chapters 1 and 2, except for point 2.5). 

• Circular No. 30 of 2016 (number 7) is hereby repealed. 

• Circular No. 41 of 2021 (number 3, letter B, chapter VI) is repealed. 

III. Efficacy of the Law 

• The modifications introduced by Law No. 21,713 to Article 69 of the Labor Code will take effect on November 1, 2024. 

• They apply to all requests for winding-up submitted from that date and to ongoing proceedings that are not finalized. 

• Even notices issued before the date fall under the new regime if they had not concluded by that date. 

Panama 

Registry of Taxpayers (RUC) update 

RESOLUTION No. 201-4488, dated 06.04.2025 

I. Taxpayer Requirements 

• Require all taxpayers, natural and legal persons, to keep their information contained in the Single Taxpayer Registry (RUC) of the General Directorate of Revenue updated. 

II. Granted Period 

• Grant a deadline until August 31, 2025, so that all taxpayers, natural or legal persons, update their information in the Unified Taxpayer Registry (RUC) of the General Directorate of Income. 

• Without prejudice to the corresponding sanctions that may be applied for providing such information partially, insufficiently, or erroneously, or for failing to update the data in the registry within the established timeframe. 

III. Update Method 

• inform that updates made through the General Directorate of Revenue's tax management computer system, eTax2.0, must be completed by filling in all required fields. 

IV. Validity of the Resolution 

• This Resolution will take effect upon its publication in Official Gazette. 

• No appeal of any kind may be filed with the administrative body against it. 

V. Legal Basis 

• Cabinet Decree No. 109 of May 7, 1970. 

• Law No. 76 of December 22, 1976. 

• Executive Decree No. 170 of 1993, as amended by Executive Decree No. 98 of 2010. 

• Resolution No. 201-1666 of June 15, 2005. 

• Resolution No. 201-4393 of June 21, 2022. 

• Resolution No. 201-4984 of July 12, 2022. 

• Articles 56, 154, 200, 289, 290 and other correlative articles of the Tax Procedure Code 

Costa Rica 

Resolution on the annual transfer pricing information statement 

Resolution: No. MH-DGT-RES-0026-2025.- 07.24.2025 

Annual Transfer Pricing Declaration 

• The taxpayers indicated in this resolution must submit the annual transfer pricing information return to the General Directorate of Taxation, in accordance with the model and instructions.  

II. Taxpayers Obligated 

In accordance with Article 81 of the Income Tax Law Regulations, the following taxpayers subject to income tax are required to submit the annual transfer pricing information return: 

1. Taxpayers classified as large national taxpayers who carry out domestic or cross-border transactions with related companies. 

2. Taxpayers under the Free Trade Zone regime who carry out domestic or cross-border operations with related companies. 

3. Taxpayers who carry out domestic or cross-border transactions with related companies, and which, individually or jointly, exceed the amount equivalent to 1,000 (one thousand) base salaries in the corresponding year. 

The designation «base salary» shall correspond to that established in Article 2 of Law 7337 of May 5, 1993, and its amendments, which shall correspond to the amount equivalent to the monthly base salary of "Clerk 1" as indicated in the position list of the Ordinary and Extraordinary Budget Law of the Republic. 

III. Deadline for filing the informational return 

• The transfer pricing informative return must be filed within six months following the end of the fiscal period authorized for the taxpayer. 

• You will understand all operations carried out with your related parties during the income tax period. 

IV. Declaration Form 

• The form for filing the information return will be available through the virtual office of the «Integrated Tax Management System TRIBU-CR.”. 

• The model to be used and its instructions can be viewed in attachments 1 and 2. 

• The format and instructions of the forms may be modified by the Tax Administration, according to the relevance and necessity for compliance with the tax control to which it is obliged to comply, without requiring a resolution to implement them for this purpose. 

• The Directorate General of Taxation will publish these modifications on the Ministry of Finance website at least one month in advance of their presentation date. 

• In cases where the new form is available within a period of less than one month, the previous form should be used. 

V. Means of filing the declaration 

• The taxpayer shall file the declaration through the Virtual Office of the «Integrated Tax Management System TRIBU-CR”. 

• To access this platform, you must follow the guidelines set forth in General Resolution No. MH-DGT-RES-0017-2025, “Guidelines for Accessing the Virtual Office of the TRIBU-CR Tax Management System,” issued at 2:39 PM on July 8, 2025. 

• Filings made by other means and in other formats will be considered not filed. 

VI. Liability and Penalties 

• If, for reasons not attributable to the Tax Administration's systems, a taxpayer's declaration is not filed within the established deadlines, they will be responsible for the late filing outside the legal timeframe established in the regulations governing the matter. 

• In the event of total or partial failure to supply the information, the Tax Administration shall initiate the administrative infraction proceeding indicated in Articles 150 of the Tax Code and 268 bis of the Tax Procedure Regulations, for the administrative infraction established in Article 83 of the Tax Code. 

VII. Derogatory clauses 

• The resolutions are annulled: 

• Transfer Pricing Informative Return. DGT-R-44-2016 of August 26, 2016. 

• Modification of Resolution DGT-R-44-2016, “Information Return of Transfer Prices”. DGT-R-28-2017 of May 22, 2017. 

VIII. Sole transitory provision 

• Regarding the informative transfer pricing declaration for the 2024 fiscal year, it must be submitted on November 30, 2025. 

IX. Validity 

• This resolution is effective from August 4, 2025. 

Colombia 

VAT refund or compensation for construction materials for VIS and VIP projects 

Decision of the Council of State, Fourth Section, File No. 29807 (06.05.2025). 

I. Applicable Standards 

• The plaintiff argued that the application of Decree 1625 of 2016 to the VAT refund process was not appropriate, but rather Decree 2924 of 2013, as it was the valid norm for the year 2015, the moment when the right to claim the refund was incurred. 

• Decree 2924 of 2013, which regulated the procedure for processing applications for VAT refunds or compensation on construction materials for VIS (Social Interest Housing) and VIP (Priority Social Housing) was repealed by the Single Regulatory Decree 1625 of October 11, 2016, which established in its chapter 26 the procedure for refunds referred to in paragraph 2 of Article 850 of the Tax Statute. 

• As highlighted by the court, the regulation governing the refund process applicable in this case was Decree 1625 of 2016, as it was the prevailing provision at the time of the request filed on October 5, 2017. Therefore, applying a repealed procedural rule is not appropriate. 

• Article 3 of Decree 2924 of 2013 and Article 1.6.1.26.3 of Decree 1625 of 2016 had identical texts, stating that the application for the refund or offset of value-added tax for the purchase of construction materials in social housing projects had to be submitted “no later than two (2) years following the total completion of the social housing and priority social housing construction project.”. 

II. Opportunity to Submit Application 

• The plaintiff claims that the term begins to count from the clarification of the minutes of settlement of contract number 1005-04-652-2009 for public works, signed between the Consorcio Soluciones Habitacionales and the Fondo Nacional de Calamidades Públicas – Fiduciaria La Previsora, which was signed on November 17, 2015. 

• According to the plaintiff, the clarification constitutes the last legal transaction entered into between the parties that culminates the contractual relationship, therefore the refund request filed on October 5, 2017, was submitted within the following two years and was timely. 

• The Court considered June 12, 2015, as the project completion date, as no acceptance certificates for the work were present and the certification dated December 15, 2015, was not given validity. 

III. Repayment Period According to Applicable Standard 

• Article 1.6.1.26.3 of Decree 1625 of 2016, in conjunction with paragraph 2 of Article 850 of the Tax Statute, establishes that builders of VIS and VIP can request the refund of VAT: 

• For each unit sold and transferred, within the two (2) two-month periods following the public deed or the issuance of the resolution or act of transfer of title. 

• No later than two (2) years following the total termination of the social housing and/or priority social housing construction project. 

• Article 4 of Decree 1243 of 2001, reproduced in Article 3 of Decree 2924 of 2013, also contemplated these two alternatives, confirming that the builder could choose between them to submit the refund request. 

IV. Project Termination and Contract Settlement 

• The requirements set forth in Decree 1625 of 2016 condition the eligibility for a refund to project completion of construction, No, not to the contract termination or its clarification. 

• The termination of the project is understood to be fulfilled when the contractual object has been executed, that is, the construction of each and every one of the dwellings that make up the project. 

• There is no statutory fee to prove project termination; according to Article 743 of the Labor Code (ET), the evidence presented must be analyzed to determine the completion date of the work. 

• The settlement of the contract constitutes an action subsequent to the termination of the work, with the purpose of settling accounts and finalizing the obligational relationship. The termination of the project cannot be confused with its settlement, as the latter does not affect the calculation of the deadline for requesting the VAT refund. 

V. Project Completion Testing 

• Contract 1005-04-652-2009 was signed on December 23, 2009, between the National Emergency Fund and Fiduciaria La Previsora S.A. with the Housing Solutions Consortium. 

• According to the supervision report of the National Unit for Disaster Risk Management, the initial date was January 27, 2010, and the deadline was extended to December 31, 2013. 

• On August 27, 2015, the Contract Settlement Agreement was signed, which indicated that on June 12, 2015, all the homes had been received to satisfaction. 

• The clarification of the settlement agreement was signed on November 17, 2015. 

• The certificate dated December 15, 2015, issued by the Supervisor of the National Unit for Disaster Risk Management, does not prove the completion of the project, given that it is subsequent to the contract's termination. 

VI. Conclusion on VAT Refund 

• The project completion date for tax purposes is the June 12, 2015, when the total delivery of the homes was certified. 

• Consequently, the two-year period for claiming the VAT refund should be counted from that date. 

• The request submitted on October 5, 2017, was late, therefore, the refund will not be processed. 

• The settlement or clarification of the contract do not constitute facts that alter the start of the legal term for submitting the VAT refund or offset application. 

Mexico 

Obligation of controlling companies to provide information under Article 119 of the Federal Economic Competition Law 

Isolated Thesis I.2o.A.E.10 A (11a.), Federal Judicial Weekly, 08/01/2025. 

I. Facts 

• A legal entity filed an indirect amparo proceeding against the agreement that quantified the fine imposed on it as a coercive measure for non-compliance with the request for information and documentation issued by an authority of the Federal Telecommunications Institute. 

• The complaining party questioned the interpretation made of Article 119 of the Federal Economic Competition Law, considering that it did not empower the regulatory body to request information or documentation from individuals that was not in their possession, but rather that they should obtain it as it belonged to another person. 

• The District Court denied the injunction, considering the authority's request to be correct. 

• Dissatisfied, he filed an appeal for review. 

II. Legal Standard 

• This Collegiate Circuit Court determines that Article 119 of the Federal Economic Competition Law obliges parent companies or those that hold the majority of shares in another company or companies to provide information, things, and documents that are in their possession. 

• This obligation includes those of the parent company, as well as those belonging to subsidiaries or companies over which they have a majority of shares. 

III. Justification 

• Article 119 of the Federal Economic Competition Law obliges any person who has knowledge of or is related to any fact being investigated by an economic competition regulatory body – such as the Federal Telecommunications Institute – to provide information, items, and documents that are in their possession. 

• From a teleological interpretation, this obligation must be understood broadly, as its foundation is social and based on solidarity, implying not only the provision of specific information but also assistance from private parties to the competition authority. 

• When legal entities exercise control over other companies, either by being parent companies or by holding the majority of their shares, they must provide information, things, and documents that are within their possession. This includes not only what they physically possess but also what they can obtain from other parties within the economic group over which they exercise control, due to their activities or functions within that group. 

• This does not imply that information from third parties, who are strangers or unrelated to their activity or over whom they have no influence, must be obtained or acquired. 

• This interpretation allows for effective cooperation with the economic competition authority. 

Peru: 

Application of garnishment in the form of withholding in consortia within the framework of coercive collection proceedings 

REPORT NO. 000069-2025-SUNAT/7T0000, dated 07.10.2025. 

I. Tax authority's power in coercive collection 

• Paragraph 2 of Article 116 of the Tax Code establishes that the tax administration, through the enforcement officer, exercises coercion measures for the collection of collectible debts in enforcement collection. 

• For this purpose, it will have, among others, the power to order, vary, or substitute, at its discretion, the precautionary measures referred to in Article 118 of the same Code. 

II. Garnishment 

• Numeral 4 of subsection (a) of Article 118 of the Tax Code provides that the coercive executor may order an attachment by way of retention. 

• This measure applies to assets, securities, and funds in current accounts, deposits, safekeeping, and others, as well as to credit rights of which the tax debtor is the owner, that are held by third parties. 

• The embargo in the form of retention consists of ordering a third party to retain the credit rights that are in their possession and that belong to the tax debtor against whom the collection measure is being exercised. 

III. Third-Party Status in Attachment 

• The condition of “third party” is given by the “debtor-creditor” relationship that must exist between said third party and the tax debtor. 

• The third party must have the ability to retain the amount owed, which constitutes a credit right owned by the tax debtor that is in their possession. 

• Provision 1 of Article 119 of the Civil Code states that one of the effects of obligations consists of authorizing the creditor to employ legal measures so that the debtor provides what they are obligated to. 

• The Pan-Hispanic Legal Spanish Dictionary of the RAE defines “credit right” as the right that corresponds to one person to demand from another the fulfillment of an obligation to give, do, or not do. 

• The “third party” referred to in numeral 4 of subsection a) of Article 118 of the Tax Code is a subject who has an obligation to give in favor of a tax debtor included in a coercive collection procedure. 

IV. Regime of condominiums 

• Article 445 of the LGS establishes that a consortium is a contract by which two or more persons associate to participate actively and directly in a specific business or enterprise with the purpose of obtaining an economic benefit, while each maintains its own autonomy. 

• Article 447 of the same law states that each member of the consortium is individually bound to third parties in the performance of the activity corresponding to them within the consortium, acquiring rights and assuming obligations and responsibilities in their own name. 

• In the consortium agreement, each member assumes the activities assigned to them through their active and direct participation, as well as their linkage with third parties, without this implying the formation of a distinct and separate legal entity. 

• In the tax field, consortia are classified as: 
  Those who do not keep independent accounts. 
  b) Those who do wear it. 

V. Consortia without independent accounting 

• They do not have legal personality for tax purposes. 

• Credits held by entities contracting with them are owned by the parties that comprise them in their respective percentages. 

VI. Consortia with independent accounting 

• Tax regulations recognize, in certain cases, that these consortia have the status of subjects of tax rights and obligations. 

• According to RTF No. 12591-5-2012, this occurs due to the autonomy of tax law. 

• Article 14 of the Income Tax Law grants consortia with independent accounting the status of legal entities for the purposes of that Law. 

• Article 9 of the IGV and Selective Consumption Tax Law also provides that said consortiums are IGV taxpayers. 

• However, the aforementioned RTF specifies that this taxing capacity is not general, but limited to the fulfillment of Income Tax and IGV obligations. 

• Article 447 of the General Health Law establishes that each member of the consortium is individually bound and liable to third parties in accordance with the rights and obligations they have assumed. 

• RTF No. 10885-3-2015 indicated that, if the regulations do not grant a consortium the status of a subject of rights and obligations, it will not be the consortium that participates in administrative proceedings, but rather each of the contracting parties, provided they are holders of legitimate rights or interests. 

VII. Consortium's Commercial Relationship with Third Parties 

• As a general rule, a consortium with independent accounting does not constitute a separate autonomous entity from the parties that comprise it. 

• Each consortium member directly interacts with third parties. 

• The legal personality that tax regulations might grant to consortiums only has specific effects regarding tax obligations, not in commercial relationships. 

• The accounts payable generated by commercial relationships with a consortium must be settled with each of its members, not with the consortium itself. 

VIII. Application in Attachment by Garnishment 

• The “third party,” within the framework of numeral 4 of subsection a) of article 118 of the Tax Code, is the entity that has an obligation to provide something in favor of a member of the consortium. 

• It is irrelevant whether the invoice corresponding to the debt was issued by a consortium with independent accounting or by the representative of a consortium without independent accounting. 

Conclusion 

• The coercive enforcement officer may order an entity to execute an attachment in the form of a garnishment on the amount owed to a consortium member under coercive collection proceedings, and it is irrelevant whether the invoice was issued by a consortium with independent accounting or by the representative of a consortium without independent accounting.