Tax Regularization

With the purpose of boosting the country’s economy, the General Revenue Office of the Ministry of Economy and Finance, creates by means of Law No. 337 of November 14, 2022, the Extraordinary Payment Agreement, which is nothing more than the process that may extinguish tax obligations by means of an administrative procedure.

This Law seeks to encourage the voluntary compliance with pending tax obligations, as well as those arising from auditing processes or administrative acts dictated by the General Revenue Office of the Ministry of Economy and Finance.

Among the most relevant aspects dictated by the aforementioned Law, we can indicate that:

• The Extraordinary Payment Agreements are considered of public order and of social interest, therefore they shall apply retroactively to all administrative acts dictated by the General Revenue Office, provided that they are not enforceable;
• All taxpayers whose Single Taxpayer Registry is valid, and are not under investigation or convicted for tax evasion or tax fraud, shall have the capacity to intervene in the process of Extraordinary Payment Agreements;
• The Extraordinary Payment Agreements shall include the nominal value of surcharges, interest, and fines;
• The process of Extraordinary Payment Agreements may only be initiated at the taxpayer’s request, provided that the tax obligations exceed the amount of fifty thousand balboas (B/.50,000.00);
• The administrative act that puts an end to the process of Extraordinary Payment Agreement shall not be subject to appeal.
• All requests for Extraordinary Payment Agreements must be filed before December 31, 2022, and such request formalized by the taxpayer shall interrupt the statute of limitations on the Tax Administration’s power to collect the obligations.

The Extraordinary Payment Agreements shall be processed through a legal representative before the General Revenue Office, where the entity shall issue a duly motivated resolution admitting the request presented in a term not exceeding 15 days.

Said resolution shall be notified in accordance with the provisions of paragraph 5 of Article 100 of Law 76 of 2019, to the email address stated in the Single Taxpayer Registry.

Within this process of Extraordinary Payment Agreements, two hearings may be held, the first one that may be held within the first 15 business days following the date on which the resolution admitting the administrative process of Extraordinary Payment Agreement was notified, and the second one shall conclude with the administrative act that resolves the request for Extraordinary Payment Agreement.

This legislation establishes parameters for taxpayers with pending proceedings, in order for them to pay or make payment agreements, for which Quijano & Associates has a team with vast knowledge in tax and fiscal matters that may represent you before the tax authority.