Reform of the Tax Code

Law 189 of December 17, 2020 modifies the special income tax regime applicable to micro, small and medium-sized companies, businessmen and entrepreneurs through the articles:

Article 699-A of the Tax Code for Legal Persons

As of the fiscal period 2020, the legal entity considered micro, small and medium-sized companies that are under the following circumstances:

That are registered in the AMPYME Business Registry
That your gross annual income does not exceed 500,000.00
That its partners or shareholders are natural persons

They will pay income tax according to the following rates

Total Income	Tax Payable on Taxable Income
From 11,000.00	7.5%
11,000.01 to 36,000.00	10%
36,000.01 to 90,000.00	12.5%
90,000.01 to 150,000.00	15%
150,000.01 to 350,000.00	20%
350,000.01 to 500,000.00	22.5%

Other benefits: Exemption from Complementary Tax

Article 700-A of the Tax Code for Natural Persons

As of the 2020 fiscal period, the natural person considered a micro, small and medium entrepreneur who is under the following circumstances:

That are registered in the AMPYME Business Registry

That your gross annual income does not exceed 500,000.00

They will pay income tax according to the following rates:

Total Income	Tax Payable on Taxable Income
Equal or less11,000.00	0%
11,000.01 to 36,000.00	7.5%
36,000.01 to 90,000.00	10%
90,000.01 to 150,000.00	12.5%
150,000.01 to 350,000.00	17.5%
350,000.01 to 500,000.00	22.5%

We provide the registration service in AMPYME if you are a legal person and a natural person.

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