What should agricultural companies know in the face of a new fiscal closure?

On June 30, companies with agricultural activities close their fiscal year.

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Next, we detail the taxes that must be paid:

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  • IRAE or IMEBA for the income obtained

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  • IP and its surcharge if applicable due to its assets

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In this section we will analyze income tax.

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Agricultural producers must pay IRAE or IMEBA , as appropriate.

The IRAE taxes the net income obtained from the exploitation at a rate of 25%.

The IMEBA levies rates ranging from 0.10% to 2.5% on the sale price, the first sale that the agricultural producer makes to IRAE taxpayers.

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What agricultural producers can choose to pay IMEBA?

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Income ex. above lower than UI 2,000,000 YES

    

Corporations, or limited by shares   NO

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Investment funds and trusts NO

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Permanent establishments of people from abroad NO

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Operations with extensions smaller than 1,250 hectares YES

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Fixed asset sales income NO

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IRAE or IMEBA? Some points to keep in mind

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Producers who can choose between IMEBA and IRAE must take into account the following:

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  • IRAE taxpayers can apply the benefits to investments every time they make purchases and investments in your company.

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  • The farms that have relatively large profit margins reduce their tax burden by opting to liquidate IMEBA, since the IRAE is settled on the margins obtained.

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  • For the purposes of liquidating the IRAE, an administrative structure must be in place that allows the proper recording of sales operations, keeping sufficient accounting and properly documenting expenses. As the IMEBA is applied directly on the amount of the invoice issued, it is not necessary to have administrative and registration support.

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  • IRAE taxpayers can recover the VAT on purchases they paid when acquiring inputs and materials for production. In the case of having opted for IMEBA, VAT cannot be recovered, becoming a cost.

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  • Finally, it is necessary to highlight that when opting for IRAE, it must continue to be settled for 3 years, including the option.

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What is the expiration date?

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The due date for the presentation of the Affidavit and the payment of the balance that may arise from it is October 26 for NON-CEDE taxpayers and October 22 for CEDE taxpayers.

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