Other Taxes

WHOLESALE AND LUXURY ITEMS TAX

A wholesale and luxury items tax (impuesto al consumo suntuario y a las ventas al mayor), similar to a value added tax applies, but only among corporations. The standard rate is currently 12.5%. A proposal has been made to raise the tax to 16.5% and to apply an additional 30% tax to luxury items. If the proposal is enacted, it will be effective from 1 June 1996.

A business receives a credit for tax paid on its purchases of goods, chattel, and imports; it gets a debit against tax on sales. If debits exceed credits in a month, the excess may be carried forward as a credit to the following months.

Exports are taxed at a rate of 0%. Exporters that are regular taxpayers are entitled to recover the tax they paid at a pro rata basis by requesting reimbursement, using tax paid to pay income taxes, or assigning tax credits to another taxpayer. Such reimbursement would be made by means of a tax certificate provided by the tax administration.