7.5.1.3. Temporary attribution

GENERAL RULE (art. 14.1.b) Law)

Taxpayers who carry out economic activities will apply to the income derived from said activities, exclusively, the temporary imputation criteria provided for in the Corporate Tax Law and its implementing regulations.

As a general rule, income will be allocated in the tax period in which it accrues, regardless of the time of collection, understood to be accrued when the goods are made available or the services are provided.

Likewise, as a general rule, expenses are accrued when the goods are made available or the service is provided, depending on the nature of the expense, regardless of the time of payment.

Returns pending judicial resolution: When all or part of an income has not been paid because the determination of the right to its collection or its amount is pending a judicial resolution, the unpaid amounts will be attributed to the tax period in which it becomes final.

Income from installment operations: The income will be understood to be obtained proportionally as the corresponding charges become payable, unless the taxpayer decides to allocate them at the time of the birth of the right.

CRITERIA FOR TEMPORARY ALLOCATION OF COLLECTIONS AND PAYMENTS (art. 7.2 Rgl.)

Taxpayers who carry out economic activities that are not fiscally obliged to keep their accounting in accordance with the provisions of the Commercial Code, and fulfill their accounting and registration obligations by keeping the tax record books provided for in each case, may opt for the criterion of collections and payments to temporarily allocate the income and expenses of all your economic activities.

Said criterion will be deemed approved by the Tax Administration simply by stating it in the corresponding declaration, and must be maintained for a minimum period of three years.

The option for the criterion indicated in this section will lose its effectiveness if, after said option, the taxpayer becomes fiscally obliged to keep its accounting in accordance with the provisions of the Commercial Code or chooses to keep its accounting in this way.

In no case will changes in the temporal imputation criteria or in the regime for determining net income result in any expense or income not being computed or being imputed again in another year.