In December 2019, the General Tax Authority established that the inactive legal entities domiciled within the country are obliged to register towards the Uniform Tax Registry. In this sense, all legally constituted entities, commercial or not, capital or of people, must register towards the Uniform Tax Registry of the General Tax Authority as taxpayers of the Income Tax, regardless of whether they carry out lucrative or substantive activities.
This means that inactive legal entities also have an obligation to file an income tax declaration.
Originally, legal entities that have not carried out lucrative or substantive activities in the fiscal period, had to file the sworn declaration of the Income Tax, form D-101, providing their information on assets, liabilities and capital stock in compliance with the International Financial Reporting Standards (IFRS) and resolution DGT-R-029-2018.
However, through resolution No. DGT-R-02-2021, published in the official newspaper La Gaceta of January 22, 2021, the General Tax Authority indicated that inactive legal entities who must declare income tax, will have a simplified form made available to said taxpayers, which will be published on the official website of the Ministry of Finance.
Likewise, it extended the period to comply with the obligation to present the declaration of the 2020 fiscal period for inactive legal entities, granting an additional period of 2 months and 15 calendar days counted from the moment that the Tax Administration communicates that the simplified form has been made available for use.
This extension does not apply to legal entities that at the end of the 2020 fiscal period are classified as inactive, and have nevertheless had some activity during this fiscal period, since they are required to use the ordinary D-101 form and submit it at no later date than March 15th 2021.
Additionally, the Tax Administration indicated that inactive legal entities who want to submit the ordinary D-101 form voluntarily, must only complete the information required in resolution No. DGT-R-075-2019.
In case you have further questions, or wish to learn more about this topic, do not hesitate to contact us, and we will be happy to assist you.
TACTIC Legal Studio