This week, Law No. 10469 "Law of Tax Justice in Retroactive Payments through the amendment of Article 33 of Law 7092, Income Tax Law" was published and entered into force, which amends the wording of Article 33 of the Income Tax Law.
The main change is that, in the case of retroactive income, employers must rectify the return in the period in which the income was accrued; however, they will not generate interest for late payment to the Tax Administration in the corresponding cases.
Dahianna Jimenez, in charge of the ICS compliance team, emphasizes that the reform benefits both the employers at the moment of complying with the formal duty of withholding and declaring the tax, as well as the correct application of the tax rate to the employee's salary according to the moment of accrual of the income.