Through Resolution No. 69/2020, published on Saturday, November 7th, the Tax Administration sets regulations for certain aspects of the Personal Income Tax, providing at the same time new forms (sworn statements) to submit tax settlements.

The Tax Administration “construes” Law No. 6380/2019 and defines the scope according to their criteria, divided into two general chapters of: i) Capital income and, ii) Incomes derived from personal services, addressing also matters regarding related documentation and records

Scope of capital income is specified in relation to matters such as: anticipated inheritance, real estate leasing, withholdings, dividends, registration/cancellation of duties, among others.

On the other hand, income from personal services refers to income in kind, dependents, income by minors, alimonies, subsidies, recreation, prepaid medicine, housing, construction/remodeling/fixing, documentation/valid receipts, withholdings.

The new development in this regulation is the fact that it clarifies that real estate sales by individuals should be documented only by withholding receipts and not by issuing exempt invoices. This is extremely important as implies that the sale and purchase prices are not required to be stated when declaring VAT amounts because they are not covered by said type of tax.

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