The General Sales Tax Law provides in Article first that renting
hotels, motels, boarding houses or houses is levied with a sale tax of
In the case of rental housing, the
Tax Ministry has reiterated the obligation to pay the sale tax, all in
accordance with the clarification made on July 31, 2014 to a law against
tax fraud (Proyecto de Ley Para Mejorar La Lucha contra El Fraude
Fiscal), which was submitted to the Legislative Assembly for approval.
accordance with the provisions of the bill, the lease of houses for
residential use for periods less than one month, it is taxed with sales
tax of thirteen percent. The measure seeks to strengthen the collection
of the sale tax, claiming that the lease of houses has operated as an
informal sector that fails to pay taxes.
seeks to regularize houses rental service, making it a formal sector to
avoid unfair competition with the formal sector of hotel and lodgings
that do pay taxes. A similar initiative was sponsored last year by
representatives of the hotel industry, who sought to regularize the
competition with the condominiums that provided rental services, arguing
that the condominiums had lower operating costs and didn´t pay taxes.
identify possible contributors, the Tax Ministry might review
advertising websites, newspapers, magazines, as well as physical visits
Consequently, owners of homes and
condominiums that rented temporarily should be recorded as taxpayers in
the Tax Ministry, and submit their statements each fiscal year.