D179 LUXURY TAX


Luxury tax:

Once all the constructions in the property have a value over ¢131.000.000.00 or  $218.500 App. the form D179 must be filed to pay the Luxury tax and it is due in January 15 of every year. This tax start in 0.25% to 0.55% on the value of the constructions and portion of the land use for living. 
What is it?  Law number 8683 of November 19, 2008, created the Solidarity Tax for the Strengthening of Housing Programs (ISO), known as the 'Tax on luxury homes'. This tax falls on the value of real estate for residential use, used on a regular, occasional or recreational basis, including fixed and permanent installations. Every three years, those obliged to pay this tax must present a statement that updates the tax value of the real estate. If it exceeds the value recorded by the Administration, the new declared value automatically modifies the applicable tax base for the fiscal period in which it is declared.   What is the deadline for payment? The deadline is January 15, 2019. In order to file the company must be register for the tax so please let me know if you authorize us to work on the estimation to determinate if your home qualifies for it and then you can approve the filling and payment. Do sanctions apply for non-payment of the obligation? Yes, in case of not presenting the declaration, the sanction is half the base salary, that is US$500 approximately and if it is filed late, you must pay 1% on each month or fraction of the month on the amount left to cancel. The applicable interest rate is 12.8%.  Once the property value for the building only is over $218.500 due January of every year. This tax start in 0.25% to 0.55% on the value of the constructions and portion of the land use for living. How much should be paid?   

SCALE LUXURY TAX 2019


1.00 548,333.33                          548,333.33 0.25% 1,370.83
548,333.33 1,098,333.33            550,000.00 0.30% 1,650.00
1,098,333.33 1,646,666.67         548,333.33 0.35% 1,919.17
1,646,666.67 2,196,666.67         550,000.00 0.40% 2,200.00
2,196,666.67 2,743,333.33         546,666.67 0.45% 2,460.00
2,743,333.33 3,296,666.67         553,333.33 0.50% 2,766.67
3,296,666.67 5,000,000.00      1,703,333.33 0.55% 9,368.33  
       
       

What is the deadline for payment? The deadline is January 25, 2019.


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