The Internal Revenue Service has issued 7 circulars describing the changes announced by Law No. 20,780 of 29 September 2014 to the Income Tax Law:
- Circular No. 65, provides descriptions on anti-evasion measures;
- Circulars No. 66 and 67 give clarifications on the new accrual basis regime of taxation and on credits against the 1st category tax for the other final tax payments. The rules will enter into force on 1st January 2017;
- Circular No. 68 provides explanations on the amortization regime and on the duty to inform the tax administration on specific accounting details. The requirements explained will enter into force on 1st January 2017;
- Circular No. 69 gives descriptions on capital tax returns and the situation on dissolution of a company;
- Circular No. 70 illustrates explanations on the income tax amount derived after the division of rights and on related rules (including currency adjustments, LIR article 17);
- Circular No. 70 provides explanations on the taxable amount of income derived after the alienation of rights and on related rules (including currency adjustments, LIR article 17); and
- Circular No. 71 gives explanations on withholding taxes, income and capital gains rates for LIR purposes.
