Income Tax Withholding Rates

Regulation NAC-DGERCGC20-00000020 issued by the Internal Revenue Service and published on March 20, 2020 in the Official Registry Special Edition 459 established new rules to the income tax withholding regime:

1. The following income tax withholding rate was modified:

   Concept	Previous rate	New rate
   Acquisition of all types of movable property of a tangible nature	1%	1,75%
   Payments that do not have a specific withholding rate	2%	2,75%

1. It was clarified that the acquisition of goods of agricultural, poultry, livestock, beekeeping, bio aquatic, forest and meat origin, which are maintained in their natural condition, will be subject to 1% withholding regardless of whether an invoice or settlement for the purchase of goods or provision of services is issued.