The taxable year is the fiscal year. The fiscal year varies according to the activity of the corporation. Banks and commercial and other service activities have a fiscal year-end as of 31 December; industrial, oil, and gas companies as of 31 March; agribusiness and forestry companies as of 30 June; and mining companies as of 30 September.
CIT is assessed on a self-assessment basis every fiscal year, and the due date for submission is 120 days after the fiscal year-end. Tax returns must be accompanied by audited financial statements (if applicable) and ancillary tax information as requested by the tax authorities.
Payment of tax
CIT is payable in one annual payment 120 days after the fiscal year-end, except for mining companies, which are obligated to make advance payments on a monthly basis with respect to the additional tax (i.e. 12.5% and 7.5% for exploitation and manufacturing mining companies, respectively).
Tax audit process
The tax audit process starts with a formal notification from the tax authorities where they indicate fiscal periods and taxes to be reviewed, together with a requirement of information. Tax inspection may generally take a 12-month period. Shortly after the provision of the finalisation of the tax inspection, a preliminary report of the tax audit’s results is provided to the taxpayer in which the total tax debt is described (i.e. tax due, restatement, interests, and penalties) together with the legal arguments supporting the tax enquires.
Taxpayers do have 30 days after receiving the preliminary report to present all supporting documentation and technical arguments if they consider that the tax enquires do not have grounds to be claimed. Tax authorities do have 60 days to review all documentation/arguments provided by the taxpayer and then issue the final report, which is the formal document that could be subject to tax litigation, either via administrative process of by a judicial court. Note that claimed taxes must be paid in advance if taxpayers decide to litigate directly through the judicial court.
Statute of limitations
According to the current BTC, tax authorities have up to eight years to review and recalculate taxes determined by taxpayers, and this period could be extended two years more if taxpayers do not register in the appropriate regime or if taxpayers have performed commercial and/or financial transactions with a person (corporate or individual) resident in a country/region considered a low or nil taxation jurisdiction. This period must be computed as of the first day of the following year in which the tax payment due date has occurred (e.g. if the tax payment deadline occurred in August 2021, the period that can be subject to tax review is 1 January 2022 to 31 December 2029).
Topics of focus for tax authorities
There are not specific topics/taxes of focus in which the tax authorities address their review. This will generally depend on the nature of the taxpayer and the industry where they belong (e.g. a mining company could be more likely to be subject to tax inspections than an industrial company). There are no formal statistics to provide information in this regard.