Issued on April 22, 2021, Executive Order No. 1292 contains the following amendments to the Regulations of the Internal Tax Regime Law regarding the agricultural industry:

1. Taxpayers devoted exclusively to local production of agricultural products will not be eligible for the microenterprise regime.

2. The percentage of income tax withholding at the source for taxpayers engaged in agricultural activities will be 1%.

3. You may request the refund of withholdings over and above those applicable to agricultural activity.

Important aspects:

• Taxpayers not exclusively devoted to local agricultural goods production will remain under the Microenterprise Tax Regime as long as the conditions substantiating their remaining in the regime persist.

• The Internal Revenue Service (SRI) will ex officio exclude taxpayers engaged exclusively in agricultural products production from the microenterprise registry.

• Taxpayers who are not excluded may request exclusion from the registry.

• Exclusions made during fiscal year 2021 will take effect as of fiscal year 2022, without prejudice to the application of the 1% tax withholding.

• Taxpayers registered in the microenterprise regime who are eligible for exclusion must submit their semi-annual income tax return indicating that they have no income subject to this regime, and in their annual return they must record the amounts corresponding to the single income tax for agricultural activities.

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