- The current “Pro-SME Regime” is replaced by the “Simplified Regime for micro, small and medium sized enterprises”.
- The current integrated taxation system is maintained (its owners will not be subject to the newly created capital income tax), paying corporate income tax at a rate of 25% (temporarily 10% during 2022). The corporate income tax rate is temporarily reduced to 15% for 2023 and 20% for 2024.
- Companies that can be subject to the Simplified Regime are restricted.
- Revenues from related parties must not exceed 75,000 foment units (US$ 2,500,000, approx.) in the year prior to the year in which the company starts its activities.
- “Extraordinary” income (e.g., capital gains) is added to the computation of business income with regards to the limit for being subject to the Simplifies Regime. This type of income is currently excluded.
- The meaning of passive income is broadened for SMEs, which may not obtain more than 35% of their income from these activities.
- It is established that SMEs, as a general rule, must keep simplified accounting records, unless they choose to keep full accounting records, reversing the current rule.
- The scope of the savings incentive is limited to SMEs with annual revenues of less than 75,000 foment units (US$ 2,500,000, approx., instead of 100,000 foment units [US$ 3,330,000 approx.]).
- The withholding tax exemption for payments abroad associated with advertising and technological services is limited, and only companies under the Simplified Regime (annual income of less than 75,000 foment units) will be eligible, instead of companies with annual income of less than 100,000 foment units approx.
- Entry into force: 2025, without prejudice to the regulation of a transitory regime for business years 2025, 2026 and 2027, in order to harmonize the change of registers.
The inclusions and eliminations marked in color correspond to indications presented to the original project.
- Acces to the presumtive income regime is limited:
- Reduction of the annual sales or income limit, to a maximum of 2,400 foment units (US$ 80,000 approx.), applicable to all activities eligible for the regime (exploitation of agricultural real estate, mining and cargo or passenger transportation).
- With respect to carriers, in addition to the above threshold, they may operate a maximum of 2 vehicles.
- Limitation of the effective capital of the taxpayer that opts for the regime, applicable to all activities eligible for the regime, which may not exceed 4,800 foment units (US$ 160,000 approx.).
- Taxpayers that abandon the presumptive income regime because they do not meet its requirements will move to the transparent SME regime.
- Entry into force: 2026, without prejudice to the existence of a transitory regime as from 2024.
- Interest for late payment of taxes is reduced from 1.5% to 1% per month.
- SMEs are included as beneficiaries of the credit against the corporate income tax contemplated in the R&D law. In case there is a remaining credit, it will be refundable.
- A total or partial VAT rebate Benefit is established for SMEs subject to the tax transparency regime, which together with their related parties do not exceed 2,400 foment units (US$ 80,000 approx.) of annual revenue. This rebate will be 100% of the VAT for the first 3 months since the company has sales or provides services, 50% for the following 3 months, and 25% for the following 6 months. During these 12 months the company’s sales may not exceed 200 foment units (US$ 6,700 approx.) per month. This Benefit will be applicable for companies that start activities up to 6 months before the publication of the law.
