Decrease of Corporate Income Tax Installments by COVID-19 contingency
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Decrease of Corporate Income Tax by COVID-19
Due to the health contingency caused by the COVID-19 pandemic, the income of many companies was considerably reduced which has had a negative impact. In addition, tax obligations must continue to be declared punctually and this affects the liquidity of most companies without any exact date foreseen for this situation to return to normal.
Within this scope, the Corporate Income Tax Law considers the benefit of reducing its installments, for which authorization may be requested to reduce the tax profit ratio in installments from the second half of 2020.
The rules of the same Law, establish that the request for authorization to reduce the installments, must be submitted no later than one month before the date of the intended reduction of the tax profit ratio, so if you want to reduce the tax profit ratio of the month of July 2020 that expires on August 17, the notice must be submitted before July 17, 2020.
It is important to mention that the application of the reduction of the tax profit ratio must be made upon authorization by the Tax Authorities.
At Mazars, we are here to support you in the elaboration, analysis, and presentation of the request of decrease of the installments as well as the follow-up that this process carries.
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