Under the General Agreement 6/2014, the Supreme Court of Justice has postponed the resolution on certain Constitutional Claims ("Amparos") concerning the 2014 tax reform. The topics for which the Supreme Court has ordered lower courts to postpone resolutions are:
- The raise on the maximum tax rate foreseen for individual's income tax;
- The elimination of the preferential 11% Value Added Tax rate for frontier regions and;
- The elimination of the Small Taxpayers Regime (Régimen de Pequeños Contribuyentes).
The postponement was established because the Constitutional Actions
("Acción de Inconstitucionalidad") 40/2013 and its
addition 5/2014 filed by the minority representation in the Lower
and Upper House of Congress are still due for resolution, and such
Constitutional Actions challenged the same provisions of the 2014
tax reform that comprise the subject matter of all postponed
The resolution arrived by the Supreme Court of Justice in the Constitutional Action 40/2013 and 5/2014 will be crucial to those Constitutional Claims filed challenging the abovementioned issues, since the criterion ruled by the Supreme Court will be mandatory on all lower courts.
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.