Inactive entities will have time until June 15 to file the declaration of their assets, liabilities and capital stock.

Previously, the date to file the income tax statement was March 15, which is also the closing date for income tax declaration. However, the recently approved Law No. 10,160, Law for the Simplification of Tax Procedures for Non-Profit Legal Entities, modified Article 2, paragraph a) of Law No. 7092, Income Tax Law, in order to eliminate the condition of "taxpayers" for inactive entities. With this change in the legislation, now the inactive entities are only declarants and do not form an active part of the income tax relationship.

The penalty for not complying with this requirement is up to three base salaries, approximately ¢1,400,000.

For more information or advice on this subject, please do not hesitate to contact us.