On April 16th, 2019, a new Tax Amnesty Program has been published in the Official Gazette (Disposiciones de Carácter General que regulan los Programas de Auto Regularización). The program regulates the procedure for taxpayers that aim to correct their wrongful tax payments without being sanctioned for their violations.
What it is
The program is part of the regulations against money laundering and will affect tax debts from the tax period of July 1st, 2013 until December 31st, 2018. In order to partake in the program, tax payers have to abide by their tax duties in 2019 and request permission from the tax administration SAT (Servicio de Administración Tributaria).
What companies have to do
In order to be granted permission to partake in the program and thus receive tax amnesty, tax payers have to fulfill numerous requirements in terms of self-regulation such as the following:
- The application has to be submitted via the Money Laundering Internet Portal System (SPPLD) within 30 days after the new program has been introduced.
- The application must be amended by a description of the violations according to their legal basis, a specific account of what has led to the violations as well as measures implemented to address and correct them. Furthermore, the tax payer has to officially declare the truth of his accounts.
If the tax payer fulfills the program`s requirements and has corrected all violations fully until the end of the program SAT will not sanction him for the respective tax period.
What companies have to consider
- The program has to be implemented and finalized within 6 months after the initial application.
- The program can be approved without infringing the SAT`s rights to monitor and/or audit the tax payer.
- Companies cannot participate in the Amnesty Program, if they
- Are not on the list of possible beneficiaries of the law
- Do not update their information within this register
- Do not comply with their tax duties of 2019
- Their violations constitute a crime in terms of criminal proceedings
How the program is monitored
As explained, the SAT can monitor the progress and compliance with the program at any given time. If, based on the provided information, SAT decides that the violations are not being rectified adequately or in time, it can go on to impose the respective sanctions.
These regulatory changes could affect your business with view to customizing or support of your ERP/SAP system. Please contact us to learn about possible necessary reactions to the changes – we are happy to assist you!