Regulation NAC-DGERCGC20-000000019 issued by the Internal Revenue Service and published on April 3, 2020 in Official Registry 479, established the rules for applying the contribution for financing the comprehensive treatment of cancer.
General provision fourteen of section I of the Monetary and Financial Code establishes that individuals or entities that receive credits from the private financial sector will pay a contribution equal to 0.5% of the amount of the credit.
The contribution tariff may be reduced to 0.01% by executive decree in cases duly justified by economic or social reasons.
The regulation establishes the following parameters for the applying the contribution:
1. Withholding agents
The withholding agents of the contribution are:
- Credit cooperatives under the control of the Superintendency of Popular and Solidarity Economy; and,
- Entities of the private financial sector under the control of the Superintendency of Banks.
These entities shall withhold the total amount of the contribution from individuals and entities who have been granted credits, portfolio purchase, discounts on bills of exchange, repo operations, renewal of loans, including deferred payments on credit cards and overdrafts.
2. Declaration and payment
Withholding agents must file the contribution return on a daily basis, using the "Form for Declaring the Contribution for Financing the Comprehensive Treatment of Cancer". This return may be filed up to 48 hours after the date on which the withholding is made.
In the case of overdrafts, the contribution shall be calculated and paid by the withholding agent, once the operation is settled.
In the event that the declaration and/or payment of the contribution is not made within the 48 hours, the withholding will be subject to pay fines and interest.
In the case of credits granted from January 1 until April 3, 2020 by credit cooperatives controlled by the Superintendency of Popular and Solidarity Economy, they may declare and pay the value of the withholding through the form described above within 45 working days since April 3, 2020.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.