Small taxpayers can choose to have their income tax advance payments made monthly to avoid a big expense at Dec. 15, the tax deadline, said Francisco Villalobos, director of the tax collecting agency.
“The whole concept strives in making things easier for small businesses and professionals who are not big enough to hire an accountant or a sophisticated tax adviser, yet they need help with their taxes,” he said. “So, the taxpayer comes to us, we calculate, based on previous years tax, the monthly amount to pay, and they pay that as a credit to the final payment at the end of the year.”
“We will help him or her to prepare the return, and if needed, will grant extensions for the payment,” he said. “The system is aimed to small taxpayers and professionals such as computer programmers, lawyers, doctors, etc.”
Villalobos was the man who was picked late last year to increase the collection efforts of the Dirección General de Tributación. Among other things he has reminded English-speaking taxpayers of their obligation to make partial tax payments every three months.
The new monthly system stems from that.
“If they make their payments monthly, the tax becomes part of their budget, and they will not suffer the stress at the end of the year to pay a bigger amount,” he said of small business owners and professionals.