Is Council Tax lawful?

Is Council Tax lawful?

Legislative Decree 776 updated 2021

The insufficiency of economic means currently available to the Local Corporations for the adequate development and maintenance of the services they are responsible for is such a notorious fact that it is not possible to discuss the need for an immediate reform in order to increase their income.

Consequently, the present provision has two fundamental purposes. The first responds to the convenience of localizing, as far as possible, the municipal revenues, assigning them to the Town Hall where the tax base is located and thus closing the transition period opened as a consequence of the reforms operated in the municipal levies on consumption and in the old Industrial Tax, which altered the distribution of the yields of the local surcharges on the same and imposed the suppression of the so-called tax on the net product. The implementation of these reforms forced the creation of national funds that smoothed the differences in income caused by the new organization of state taxes. The direct attribution to the Town Councils of the tax yields located in their municipalities will make the existence of such funds unnecessary.

Municipal Taxes

22 November, 2021What happens if I don’t file my taxes? American ExpressSummaryNot filing the annual tax return for corporations and not paying taxes can have consequences such as fines, surcharges, enforcement costs, audits and seizures.

All businesses have fiscal obligations to comply with the payment of three basic taxes: VAT (Value Added Tax), ISR (Income Tax) and IEPS (Special Tax on Production and Services). The declarations of these taxes must be made on a monthly and annual basis.

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The Tax Administration Service seeks that the taxpayer pays the taxes that have not been declared in a single exhibition; however, the debt can be negotiated to be settled in any of the following modalities:

What are the municipal taxes

First Ratify the New Municipal Tax Plan that the Mayors’ Offices of all the municipalities of the country have raised for such purpose, and therefore it shall be applicable in all of them, with the exception of Managua as of the date of its publication in La Gaceta; Official Gazette; being its literal transcription the following:

The treasury of the municipalities is made up of their movable and immovable property; of their active credits, of the proceeds of their sales, taxes, participation in state taxes, fees for services and benefits, excise taxes, special contributions, fines, rents, canons, transfers and of any other property attributed to them by law or that they may receive by any other title.

Any natural or juridical person habitually engaged in the sale of goods or rendering of services, whether professional or not, must apply for registration annually in the municipality for each of the economically differentiated activities carried out therein.

Municipal Taxation Law 2020

Article 302 of the Political Constitution of the State in paragraph I, numeral 19, establishes as exclusive competence of the autonomous municipal governments, in their jurisdiction, the creation and administration of municipal taxes.

Article 323, paragraph III of the Constitution provides that the Plurinational Legislative Assembly shall classify and define the taxes that belong to the national, departmental and municipal tax domain by means of a Law.

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Likewise, the aforementioned Law No. 031, in the first paragraph of its Second Transitory Provision, establishes that the creation of taxes of the autonomous territorial entities shall be subject to the provisions contained in the tax classification law and the basic regulatory legislation for the creation and/or modification of taxes; otherwise, Law No. 2492 of August 2, 2003 (Bolivian Tax Code) or the rule that replaces it shall apply.

The Law of Classification and Definition of Taxes and Regulation for the Creation and/or Modification of Taxes of Autonomous Government Domain No. 154 of July 14, 2011, in its Article 8, classifies and defines that municipal governments may create taxes that have the following generating facts: