5% of ISD in duty free areas

5% of ISD in duty free areas

Under the new regulation of the Redistribution of Social Spending Law, airports will cover 5% of the Tax on international currency transaction (ISD, for its Spanish acronym) to passengers traveling with more than $10.180.

As announced by Carlos Marx Carrasco, director of the Internal Revenue Service (SRI for its Spanish Acronym)), the regulation entered into force last week.

The Redistribution of Social Spending law’s tenth article states “Individuals and companies legally authorized to own shops in the pre shipment areas of the country’s international airports are considered as ISD withholding agents.”

Even if the tenth article’s interpretation could be “not totally clear”, Carrasco explained that the tax administration can make conventions with organizations acting as “withholding agents.” (JBM)