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27/02/2023

Executive summary::

AuthorityContentDate
Decree No. 8.781The special taxable base of the Selective Consumption Tax ("ISC") for importing Type III Diesel/Oil Gas is extended until February 28, 2023.January 31, 2023
Decree No 8.782Until February 28, 2023, the ISC tax rates for certain electronic products are reduced by half.January 31, 2023
General Resolution No. 124The Undersecretariat of State for Taxation ("SET") establishes measures for the confirmation of the presentation of the receipt of registry created by General Resolution No. 90/2021.January 09, 2023
General Resolution No. 125SET expanded the list of goods for which tax exemption may be requested under the special regime applicable to biofuel production.January 10, 2023

More information:

Decree No. 8781/2023 – The validity of the special ISC taxable base for the import of Type III Diesel/Oil Gas is extended until February 28, 2023.

Through Decree No. 8,676/2023, the Executive Power had established, until January 31, 2023, a special ISC taxable base for importing Type III Diesel/Oil Gas, setting it at ₲ 3,083.3 per liter. This provision is now extended until February 28, 2023, by Decree No. 8,781/2023.

Decree No. 8,676/2023 was part of the Government's practice of temporarily fixing presumptive tax bases for Type III Diesel/Oil Gas, Virgin Naphtha, and RON 91 Naphtha, whose last iteration began on February 4, 2022, with Decree No. 6,620/2022, and concluded on December 31, 2022, with Decree No. 8,416/2022.

Thus, until February 28, 2023, the taxable base for Type III Diesel/Oil Gas is determined according to the provisions of Decree No. 8,676/2023. After this date, the taxable base returns to ₲3,777.78 per liter, as provided for in Article 12 of Decree No. 3109/2019, unless the special regime is extended again.

Decree No. 8782/2023 – ISC tax rates for certain electronic products are reduced by half until February 28, 2023

Through Decree No. 8,782/2023, the Executive Power resolved to temporarily reduce by half the ISC rates for the following goods:

ProductRegular tax ratesReduced tax rates
Automatic data-processing machines and units thereof; magnetic or optical readers, copying machines, hectographic machines, mimeographs, mimeographs, address printing machines, electrical machines, apparatus and equipment and parts thereof; sound recorders and reproducers, television reception apparatus, whether or not incorporating radio-broadcast receivers or sound or video recording or reproducing apparatus, video monitors and video projectors1%0,5%
Cellular telephony devices and portable terminals1%0,5%

This measure was taken previously, from July to December 2020, through Decree No. 3,735/2020 (published in Official Gazette No. 126, dated July 3, 2020). Therefore, if this provision is not extended, the 1% rate established for this type of product will be applied again as of March 1, 2023.

► General Resolution No. 124/2023 – The SET establishes measures to confirm the presentation of the register of vouchers created by General Resolution No. 90/2021.

The SET issued General Resolution No. 124/2023 (the "RG 124") to regulate the obligations related to the filing of the voucher registration, regulated by General Resolution No. 90/2021 (the "RG 90").

RG 124 establishes that, until June 30, 2023, failing to confirm filing the tax voucher registration stub corresponding to the fiscal year 2022 does not constitute tax non-compliance. This means that this does not generate the negative consequences of non-compliance -other than the fine for contravention-such as the impossibility of generating the tax compliance certificate, an increase of the taxpayer's risk index, etc.

This provision applies exclusively to taxpayers who must register their receipts annually (under obligation No. 956). Therefore, tax non-compliance is generated for those taxpayers who must register their receipts every month (under obligation No. 955) if they do not confirm the filing stub in due time, with the consequences already indicated.

In addition, until July 31, 2023, RG 124 exempts taxpayers who are obliged to register their vouchers on an annual or monthly basis and who confirm the filing stub late in the Marangatú Tax Management System, from the penalty of contravention. After this date, the fine for contravention foreseen for non-compliance with formal tax obligations is applied.

General Resolution No. 125/2023 – SET expanded the list of goods for which tax exemption may be requested under the special regime applicable to biofuel production.

Through General Resolution No. 125/2023 (the "RG 125"), the SET amended General Resolution No. 112/2022 (the "RG 112"), which regulates the form of filing of the tax exemption applies for the biofuel production regime, provided for in Law No. 6,389/2019 (the "Biofuel Law").

The Biofuel Law establishes a series of exemptions applicable to producers of biofuels suitable for use in diesel engines. Mainly, these exemptions apply to the Value Added Tax ("VAT") at the time the biofuel is disposed of (which is also provided for in the general tax regime) and also at the time the producer purchases the raw materials and inputs for the production of the biofuel.

To determine what is comprised of raw materials and inputs that can benefit from the referred exemptions, RG 112 established an exclusive list of the goods included within such categories. In this sense, the SET expanded the definition of raw materials and inputs, through RG 125, by additionally adding the following products to the list:

a) Raw materials: Oils derived from all the raw materials initially mentioned (except animal fat), including soybean, sesame, tung, sunflower, corn, wheat, sorghum, cotton, peanut, canola, tartago, coconut, fodder turnip, carinata, jatropha, and safflower.

b) Inputs: Hydrochloric acid, sulfuric acid, formic acid, ethanol, paratoluene sulfonic acid and ionic resin. In addition, two more sub-categories of inputs have been added:

In addition, two more sub-categories of inputs were added:

b.1.) Consumable production supplies: filters, supplies, and additives for water treatment (salts, membranes, algaecides, and bactericides), boilers and cooling towers, supplies for stillage evaporator, supplies and additives for an effluent treatment plant.

b.2.) Laboratory supplies: Karl Fischer reagent, acetone, sulfuric ether, petroleum ether, isopropyl alcohol, PA sodium hydroxide, nitrogen, oxygen, hydrogen, helium, anhydrous methanol, certified reference materials, standard reagents, standard drugs, chromatography standards.

It is important to emphasize that raw materials and inputs that are not mentioned in the new wording of RG 125 cannot benefit from the referred tax exemptions applicable under the Biofuel Law.


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