With the recent enactment of Law No. 10586, known as the “Tax Simplification Law to Enhance Efficiency and Competitiveness (Phase 1)” (Ley de Simplificación de Impuestos para levantar la Eficiencia y la Competitividad - Fase 1), several taxes have been reformed and repealed, including those on cattle, wharfage (muellaje), and meat supply for both the domestic and export markets.

The primary objective of this law is to carry out a reform of the country's fiscal system, oriented toward reducing the tax burden and simplifying the procedures related to compliance with tax obligations. The purpose of this statute is to foster a more efficient and competitive economic environment, which may yield positive effects across various sectors of the national economy.

Furthermore, the law aims to improve tax collection by optimizing resources, which could lead to an increase in State revenues. Concurrently, it seeks to promote the economic development of the country by creating a more favorable environment for business development, thereby reducing costs that frequently hinder formalization.

Under this law, the repeal of several articles of the Fiscal Code (Código Fiscal), which was enacted back in 1885, stands out.

Particularly, it is worth noting that, by virtue of this law, the fiscal stamp (timbre fiscal) is repealed. This stamp previously applied to all notarized transcripts (testimonios), contracts, powers of attorney, judicial pleadings, notarized signature authentications, donations, leases, loans, releases (finiquitos), negotiable instruments, passports, patents, certifications, and university degrees, among others.

In short, this law is poised to boost economic development and attract foreign direct investment to the country through said simplification and repeals, with a view to increasing competitiveness and the ease of doing business. For further information, we will gladly assist you at yaguerrero@fayca.com.