Guimba Accounting Firm

For 2023, TAXES CHANGES

1.Lower individual taxpayers

Effective Jan. 1, there will be a reduction in the graduated income tax rates for individual taxpayers, as presented in the table.

Net taxable Income Tax Rate
Over But not over
- 250,000 0%
250,000 400,000 15% of excess over 250,000
400,000 800,000 22,500 + 20% of excess over 400,000
800,000 2,000,000-102,500 + 25% of excess over 800,000
2,000,000 8,000,000 402,500 + 30% of excess over 2,000,000
8,000,000 2,202,500 + 35% of excess over 8.000,000

2.VAT filings

Starting Jan. 1, taxpayers will only be required to file four quarterly Value-Added Tax (VAT) returns instead of 12 filings per taxable year.

3.Revert of the previously lowered tax rates due to pandemic

Effective July 1, the following taxes, which were previously lowered, will revert to their original rates:
A.) Minimum Corporate Income Tax from 1% to 2%;
B.)Percentage Tax for non-VAT taxpayers from 1% to 3%;
C.) and Special Income Tax Rate for Non-Profit Proprietary Educational Institutions and Hospitals from 1% to 10%.

Hope it may help you!