Income tax return: Request for credit balances with audit benefit

Those who have filed their 2019 tax return liquidating a balance in favor, and have complied with the requirements for it to become final within the 6 months following its filing, may only process the request for refund of the balance in favor before the end of the finality period.

The income tax returns for the taxable year 2019 of individuals and legal entities could be filed with the possibility that the audit benefit of article 689-2 of the Tax Statute -ET- (created with article 105 of Law 1943 of 2018 and ratified with article 123 of Law 2010 of 2019) could be applied to them.

Therefore, if all the requirements demanded in such rule were met, the finality of such returns could operate within six (6) or twelve (12) months following their timely filing, all depending on the increase that has occurred between the net income tax for the taxable year 2019 and the net income tax for the taxable year 2018.

Thus, if the increase in such item was between 20% and 29%, the finality operates automatically in the twelve (12) months following the date of timely filing of the return. But if it was equal or higher than 30%, it operates within six (6) months following the timely filing.

AG 2019 returns with credit balances

Now, it is possible that the return that is covered by the audit benefit has included a balance in favor instead of a balance payable. In this type of cases, if the taxpayer is interested in requesting the refund of such balance in favor, it is necessary to keep in mind what was provided in paragraph 3 of the same article 689-2 of the ET, since there it reads:

“Paragraph 3. In the case of returns that record a balance in favor, the term for requesting the refund and/or compensation shall be that provided in this article for the finality of the return.”

Consequently, and to cite a simple example, if the return was filed on May 20, 2020, and the requirements for it to become final within the six (6) months following its filing were met, the taxpayer must file its request for refund no later than November 20, 2020.

In this regard, it should be kept in mind that in order to process the refund or compensation requests the taxpayer must take into account the current rules contained in articles 815 and 850 to 865 of the ET, plus articles 1.6.1.1.21.12 to 1.6.1.1.21.31, and 1.6.1.29.1 to 1.6.1.29.3 of DUT 1625 of 2016.

It is important to note that several of the cited articles of DUT 1625 of 2016 were modified with Decree 963 of July 7, 2020, which was in charge of regulating in particular the automatic refund request contemplated in paragraph 5 of article 855 of the ET, which operates within fifteen (15) business days following the filing of the request and not within the 50 calendar days mentioned in the first clause of the same article 855 of the ET.

Form 2613: list of costs and expenses for refund of tax credit balances

“if you wish to process the automatic refund of credit balances, you must fill out form 2613”.

In addition, the instructions of Resolution 000151 of November 2012, recently modified with Resolution 000082 of July 2020, should be taken into account, which indicates that if you wish to process the automatic refund of credit balances, you must fill out format 2613 with the list of costs and expenses supported in electronic invoice referred to in paragraph 5 of article 855 of the ET.

Source: Actualícese