According to Decree 536 of 2016, published on along with applicable as of 5 April 2016, sets out the inflation component rates concerning to financial income exempt from income tax and financial expenses that are non-deductible, and the presumptive interest rate concerning interest accruing on loans issued between companies and their shareholders.
For tax year 2015, 100% of revenues obtained by mutual investment funds, investment funds and securities funds, paid to their clients who are individuals not required to keep accounting records, are exempt from tax on income and capital gains; 100% of financial income received by individuals who are not required to keep accounting records is exempt from tax on income and capital gains; 38.51% of interest and financial expenses incurred by individuals who are not required to keep accounting records are non-deductible; and 17.51% of foreign exchange costs and expenses incurred on loans denominated in foreign currency are non-deductible.
For tax year 2016, interest rate of 5.22% applies yearly to any loan granted by a company to its shareholders or by the shareholders to the company.
