Forum Post12/21/11 08:51Rural east Colonia departmento | Farming and taxes A slight amendment to what I wrote wrt taxes on crops and other produce which are sold through official channels. For small "unipersonalised" farmers there is now a flat rate tax of about 8% on the value of the crop sold. There are no requirements to prepare and submit farm accounts. The merchant in question will deduct the tax before he pays you.Unipersonalised farmers with 50 hectares or less can now claim exoneration from paying the modest agricultural land tax (contribucion rural.) Unipersonal BPS contributions for small farmers remain at about 16k pesos/year. For the non-agricultural self-employed, its about twice this figure. Capital taxes (IP) apply to assets held within the ROU with a free annual allowance of just over 100k U$S per person per annum (twice that for couples.) OTOH there are exemptions to IP which include farms, agricultural machinery, dead and live stock and on other items necessary for farming inc agricultural buildings. Farm houses are assessed in the usual way (that is at a fairly low value) but being farm houses, they get a further 50% valuation discount. Strange to say, money sitting in a bank account which pays no interest is also exempt from IP. There are plans to scrap IP by 2017. |
