Newsletter #137:Tax Updates
On August 16, 2022, the Superintendent of the Tax Administration, Marco Livio Diaz, informed on omissions in the payment of Income Tax on capital gains in the transactions involving Real Estate by the taxpayers.
The three scenarios that the Tax Administration has detected are:
- Mortgage: in the public deed of sale, the inconsistency is determined because the value of the real estate is recorded at a lower cost and the mortgage, which is for an amount higher than the transaction shown in the public deed of sale, is not reported for tax purposes.
- Deed plus Mortgage: the transaction is split, the purchase is reported but the mortgage is omitted, to avoid adjusting the corresponding tax.
- Down payment plus Mortgage: the non-compliance in the payment of the tax derives because only the down payment is recorded, and the complement of the transaction is not reported for the correct determination of the tax.
Additionally, the Tax Administration indicated that they are inspecting properties of high value.
The press release issued by the Tax Administration can be consulted here.
For more information, please contact:
- María de Lourdes Villanueva: Maria.Villanueva@carrillolaw.com
- Gabriel Cabrera: email@example.com