Reduction Of Several Taxes Tariffs

• Published date: 28 February 2023
• Subject Matter: Tax, Sales Taxes: VAT, GST, Tax Authorities
• Law Firm: CorralRosales
• Author: Ms Andrea Moya

The President of the Republic, issued the Executive Decrees 643, 644 and 645 on January 10, 2023, by which the reduction of the following taxes tariffs was ordered:

1. Gradual reduction of the Foreign Exchange Tax (ISD) according to the following schedule:

a. As of February 1, 2023, the tariff of the Foreign Exchange Tax will be 3.75%.

b. As of July 1, 2023, the tariff of the Foreign Exchange Tax will be 3.50%.

c. As of December 31, 2023, the tariff of the Foreign Exchange Tax will be 2%.

2. Reduction of the Value Added Tax (VAT) tariff from 12% to 8% levied on the provision of services related to tourism...