Simplified Informative Income Tax Return

The Tax Authorities established, by means of ruling DGT-R-075-2019, that companies registered under the category “legally incorporated legal entity” (inactive/holding companies) must file the Simplified Income Tax return (Simplified Form D-101) for fiscal years 2020 and 2021 before March 15th, 2022. The tax return will include information related to cash, temporary investments, collectable accounts, ownership of stock and contributions made to subsidiaries, fixed assets (including depreciation), liabilities and capital stock of the company, which will automatically calculate the net worth of the legal entity. The form is available for taxpayers as of January 1st, 2022, in the Virtual Tax Administration portal (ATV). In addition, non-compliance would derive in a fine equal to half base salary, as established by article 79 of the Tax Code.