Tax Update

Legislative Decree No. 1713

New Grounds Added for Transferring Funds from Withholding (Detractions) Accounts to Government Collection

A new ground is introduced for transferring to government collection the amounts deposited in detractions accounts, namely the existence of an enforceable tax debt owed by the account holder. Accordingly, such funds may be applied to the payment of tax liabilities that have not been challenged within the statutory period, as well as those for which an approved installment plan has been terminated due to default, among other enforceability scenarios provided under applicable law.

Effective Date: March 1, 2026

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