Accrual and tax period
Regulations: Articles 12 and 13 Law Personal Income Tax
In general, the tax period is the calendar year, with Personal Income Tax accruing on December 31 of each year.
Consequently, the personal income tax return for the 2021 financial year must include all the facts and circumstances with fiscal significance for the purposes of said tax that are attributable to said calendar year.
The tax period is less than the calendar year only when the death of the taxpayer occurs on a day other than December 31 , then the tax period ends and the tax accrues at that time.
No other event other than the death of the taxpayer (marriage, divorce, marital separation, etc.) will give rise to tax periods shorter than the calendar year. Therefore, for the same taxpayer there cannot be more than one tax period within the same calendar year.
Only in declarations that correspond to tax periods less than the calendar year, the “ACCRUEL” section, located on page 2 of the declaration model, must be completed.
Important : In the event of the death of a taxpayer who is part of a family unit, the remaining members may opt for joint taxation, but without including the deceased's income in said declaration.
Example :
Marriage formed by spouses "A" and "B" with whom their minor son "C" lives. In the month of June, the death of spouse "A" occurs.
Determine the tax period and forms of taxation of the components of the family unit.
Solution:
Members of the family unit can choose to pay taxes in the following way:
Individual taxation.
- Individual declaration of spouse "A" with a tax period less than the calendar year.
- Individual return of spouse "B" with a tax period equal to the calendar year.
- Individual declaration of child "C" with a tax period equal to the calendar year.
Individual and joint taxation.
- Individual declaration of spouse "A" with a tax period less than the calendar year.
- Joint declaration of the remaining members of the family unit ("B" and "C") for the entire year.