Taxation Principles: Tax Base, Rates, and Debt Obligations

Tax Quantification Obligations

The Tax Base

The tax base is the monetary or non-monetary magnitude used to measure or value the taxable event. The following methods are used to determine taxable income:

• Direct Estimation: The general method, which takes into account actual data (income minus costs).
• Objective Estimation: Uses specific indices set by the Ministry of Finance for a given activity.
• Indirect Estimation: A subsidiary method applied only when the tax base cannot be determined completely, based on goods, records, and other indicators.

The Tax Rate

The tax rate is the coefficient or percentage applied to the tax base (after reductions) to obtain the total tax payment. Tax rates must be specific or percentage-based, as prescribed by the law governing each tax.

The Tax Debt

The tax debt consists of the amount to be recovered, resulting from the principal tax liability plus additional quantities. Note that the tax debt excludes the concept of sanctions.

Ancillary Tax Obligations

Interest on Arrears

An ancillary obligation required due to late payment or the submission of a self-assessment after the deadline. The interest rate is the legal interest of money increased by 25%, unless the law establishes otherwise.

Charges for Extemporaneous Statements

These are ancillary benefits satisfied when submitting self-assessments or statements beyond the deadline without prior requirement from the Tax Administration. The charges are:

• 5%: When submitted within three months after the voluntary deadline.
• 10% to 15%: When submitted within six to twelve months.

Executive Period Surcharges

These accrue at the start of the executive period in accordance with the provisions of the Act.

Charges of Constraint

If the taxpayer has not paid during the voluntary period, the administration may require compulsory payment of debts through the seizure of property.