Integrated Regime

In the integrated regime for small and medium-sized enterprises, the First Category Tax rate for the company was 10% for the years 2020, 2021, and 2022 as part of COVID-19 pandemic measures.

The rate will increase to 25% starting in 2023.

There is a bill being voted in congress that will extend the 10% tax rate for the coming years 2023 and 2024.

Without prejudice to the above, the current tax reform bill ("Tax Reform") proposes the application of a reduced rate of 13% for First Category Tax on the income earned by small and medium-sized enterprises (SMEs) during the 2023 calendar year. This proposal should be closely monitored due to its potential impact on SME taxation.