Ruling No. NAC-DGECCGC23-00000004 establishes criteria for the application of the regulations related to withholding at source to taxpayers subject to Simplified Tax Regime (RIMPE), which must be applied by national financial system, credit card issuers and taxpayers acting as withholding agents:

Firstly, on payments made to RIMPE called “Popular Business”, neither Income Tax (IT) nor Value Added Tax (VAT) withholdings should be made.

On the other hand, payments made to RIMPE called “Entrepreneurs” will be subject to IT and VAT withholdings according to the percentages established in Resolutions Nos. NAC-DGERCGC14-00787 and NAC-DGERCGC20-00000061 (at the present date the IT withholding is 1% and VAT withholding can be 30% for goods and 70% for services), respectively.  However, if those payments are made through credit or debit cards, collection or debit agreements, or other electronic means of payment (e.g. bank transfers), no IT or VAT withholding will be made.

Ruling No. NAC-DGECCGC23-00000005 establishes as an application criterion that blank weapons are firearms and therefore, such weapons and their ammunition acquired are subject to Excise Tax (ICE) (current ad valorem rate: 30%).

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