Municipal License

The Municipal License tax is a yearly tax collected by municipalities that applies to any activity carried out by a taxpayer within their territory.

The tax amount is calculated based on the taxpayer's equity and the rate set by each municipality, with a minimum of 0.25% and a maximum of 0.5%. The total annual fee cannot exceed 8,000 UTM (approximately USD601,005).

If the taxpayer has offices, factories, warehouses, or other establishments in multiple municipalities, the fee will be distributed among them.

According to Law No. 20,280 published on July 4, 2008 in the Official Gazette, the Internal Revenue Service has the responsibility of informing the municipalities of the declared equity of taxpayers to facilitate the collection of the Municipal License tax.