Administrative Resolution No. NAC-DGERCGC16-0156 issued by the Tax Administration was published in the Official Gazette and it establishes that 1% withholding tax rate will apply even if the Central Bank acts as an intermediary under any contractual figure, in the following cases:
- to interest and fees incurred in credit transactions between banks and other financial entities subject to the supervision of the Superintendence of Banks and the Superintendence of Popular and Solidarity Economy; and
- to any financial returns on investments made by the above financial institutions.
