The Minister of Finance submitted the budget for 2018 to the Congress for its approval on 8th September 2017. The Proposed Budget includes the Federal Revenue Law (Revenue Law), General Economic Policy Guidelines and the Federal Spending Budget framework. The finance ministry’s plan projects a primary budget surplus of 0.9% of gross domestic product in 2018.
The following proposals are included in the Federal Revenue Law:
Tax incentives:
- a 50% credit of the toll paid for the use of certain highways;
- a reduction of the estimated income tax payments for profit sharing paid in the same year;
- companies that donate basic goods destined for human consumption, may deduct an additional amount equal to 5% of the cost of such goods;
- an additional deduction equal to 25% of the salaries for the employment of certain handicapped individuals;
- a 0.58% to 0.46% reduction of the withholding tax rate on interest payments.
Surtaxes:
- Surtax for late payments increases from 0.75% to 0.98%;
- Surtax for installment payments for up to 12 months increase from 1% to 1.26%; for periods from 12 until 24 months increase from 1.25% to 1.53%; and payments for more than 24 months and deferred payments surtax increase from 1.50% until 1.82%.
