New deadline to file income tax return

Eventual effects if the balance to be paid in 2018 was higher than in 2019 or if in 2019 the tax return shows a credit balance...

Dear clients, friends and colleagues:

The Government established new deadlines to file the income tax of legal entities and large taxpayers.

The large taxpayers can choose between filing within the new deadline or within the deadline to pay the second installment.

The legal entities as taxpayers can choose between the filing within the new deadline or within the prior deadline to pay the first installment.

If the entity is in the following situations, check if it is convenient to file before the deadline:

1. In 2018 it had a higher balance payable than in 2019.
2. In 2019 has a credit balance.

Large taxpayers 

The new deadlines are as follows: 

• Payment of the second installment: between 21 April and 5 May 2020. 

This second installment is equal to 45% of the balance payable for 2018 fiscal year. 

• File and payment of the third installment: between 9 and 24 June 2020. 

• The third installment corresponds to the remaining balance of the tax return after deducting the payments of the first two installments.

Alternative deadline for the payment.

If you file before the second installment, the payment must be made as follows: 

• The second installment: between 21 April and 5 May 2020. 

This installment corresponds to 50% of: (i) the balance of the income tax return (ii) less the first installment. 

• The third installment: between 9 and 24 June 2020. 

The third installment corresponds to the balance of the income tax return less the first two installments.

Legal entities

The new deadlines are as follows: 

• Payment of the first installment: between 21 April and 19 May 2020. 

This value corresponds to 50% of the balance payable for fiscal year 2018. 

• File and payment of the second installment: between 1 June and 1 July 2020.

This installment corresponds to (i) balance of the income return (ii) less the first installment.

Alternative deadline for payment. 

If you file before the first installment, the payment must be made as follows: 

• First installment: between 21 April and 19 May 2020. 

This value corresponds to 50% of the balance payable for fiscal year 2019. 

• Second installment: between 1 June and 1 July 2020. 

This installment corresponds to 50% of the balance to be paid from the 2019 tax return.

Possible effects… 

If the balance paid in 2018 was higher than in 2019 because: 

• In 2018 it had a higher balance to pay than in 2019; or 

• It had a balance to pay in 2018 and a credit balance in 2019... 

the entity could: 

• make a payment in advance of taxes; or 

• even, generating a payment in excess... 

affecting the cash flow.

If in 2019 the income tax return shows a credit balance... 

Could file the income tax return before the deadline and could obtain a faster refund of the credit balance, benefiting the cash flow.

Check here the different situations for large taxpayers.

Check here the different situations for legal entities.