On January 30^th, 2023, was published in La Gaceta the Draft Resolution of the General Directorate of Taxation that will be used to establish the obligations that all inactive corporations will have to render Informative Declarations or Patrimonial Declarations.

The term to comply with the declaration is until April 30^th, 2023. All companies without lucrative activity (inactive), legally constituted and registered in the Single Tax Registry, must comply with this obligation to report their assets, liabilities and the amount of their capital stock. Such declaration will no longer be made by means of form D-101 as originally indicated, but by means of a specific form called “Informative Declaration of Inactive Legal Entities D-195”.

The declaration must be made by the legal representative of the company, for which purpose the Guide for filling out form D-195 may be used both, to make the declaration and to make rectifications in the appropriate cases.

Companies that receive income from the capital that are subject to single and definitive withholdings, and that have not registered their activity in the Single Tax Registry, will be considered inactive companies and will have to file the tax return. The Tax Administration will deregister ex officio the companies that have been legally liquidated, if this is evidenced before the Mercantile Registry of the National Registry or before the agency where their incorporation was processed.

The Tax Administration will sanction the companies that do not comply with the declaration within the established period. The fine will correspond to two percent (2%) of the gross income figure of the profit tax period of the year prior to that in which the infraction occurred, with a minimum of three base salaries and a maximum of one hundred base salaries.

If you require legal advice on this matter, ERP Lawyers has a team of experts who can guide and assist you in this matter. We invite you to contact us at the following e-mail address: info@erplawyers.com