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Simplified Income Tax Return for Inactive Companies

10 February, 2022
Simplified Income Tax Return for Inactive Companies

From January 1, 2022, the Simplified Income Tax Return for inactive companies is available, and inactive companies in the country will have to file the net worth statement in the Virtual Tax Administration (ATV) through Form D101-1 until March 15, 2022. 

What are inactive companies?

Companies that do not carry out any economic or profitable activity, in turn, are “registered” in the National Registry. They include holders of movable and/or immovable property, shares (holdings), investment or participation securities. Likewise, companies that had economic activity and deregistered as taxpayers before the Tax Administration and did not carry out the dissolution process at the National Registry level. 

Information to be submitted

Commonly, taxpayers do not comply with the provisions of Article 128, paragraph i) of the Code of Tax Rules and Procedures, which requires accounting records and the supporting documentation available. This implies that the figures to be reported must be accounted for and supported so that the Tax Administration will not adjust for an unjustified increase in net worth. The following is required:

  • Shareholders’ Meeting Minutes Book.
  • Public deeds proving the acquisition, transfer, or donation of movable and/or immovable property.
  • Bank statements.
  • Any documents supporting the additional capital contributions.

Likewise, inactive companies must have assigned the economic activity code 960113-Legally Incorporated Legal Entity in the virtual platform.

On the other hand, the Education and Culture Stamp and the Legal Entity Tax must be paid.

Source: Revista Summa 09/02/22