On December 22, 2021, Executive Decree No. 43375-H was published in the official newspaper La Gaceta, with the new tax brackets and rates of the single tax on income by dependent personnel, and for retirement or pension and other remuneration for personal services (Salary Tax), as well as the brackets and rates for legal persons, and individuals with profit-making activities (Income Tax), effective as of January 1, 2022.

According to the decree, an adjustment of 2.50% is made to the following income brackets for gross salary:

Income Amount Tax Rate

Income up to ¢863.000

Exempt

Over ¢863.000 monthly and up to ¢1.267.000,00 monthly.

10%

Over ¢1.267.000,00 monthly and up to ¢2.223.000,00 monthly.

15%

Over ¢2.223.000,00 monthly and up to ¢4.445.000,00 monthly.

20%

Over ¢4.445.000,00 monthly.

25%

The decree also adjusts the tax credit for an income taxpayer who can use a family credit for the spouse, for each minor child, and each adult child student under 25 years of age, as follows:

Tax Credit Monthly Amount

Spouse.

¢2.430

For each child and each adult child student under 25 years of age.

¢1.610