The withholding agents are all the people or entities that have the legal obligation to receive, control, dispose, custody or pay any item of income of a person or entity that is subject to withholdings.
That is, they are agents legally appointed by local tax authorities and / or issuers to withhold withholding taxes on your behalf. The government of a country, as a precept to collect a tax in advance, has appealed to the figure that has been called retain at source.
This figure refers to the fact that each time a transaction is made that is subject to a tax, a withholding is made for an established amount, for the concept of said tax..
As a general rule, the withholding must be made by the person or entity that makes the payment. This provided that the entity to which the withholding is made is a taxpayer of the tax that causes the withholding..
In addition, that the concept that gives rise to the withholding is effectively a concept that is subject to the withholding..
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Withholding agents are natural or legal persons who obtain income from the first category, provided that the total amount of income received is classified within this category..
By mandate of law they are obliged to withhold taxes that concern the taxpayers with whom transactions are carried out..
It can be a partnership, individual, association, corporation, trust or any other entity, including any foreign company, foreign intermediary or branch of certain insurance companies and foreign banks.
If any withholding agent determines, in its sole discretion and in good faith, that it is required to withhold taxes, then such withholding agent may withhold. You must also timely pay the total amount of taxes withheld to the corresponding governmental authority, according to the law..
Depending on the type of tax they collect, the following withholding agents can be appointed:
These agents are those taxpayers (legal or natural persons) who are legally authorized to use the change of VAT subject. For this reason, they obtain the aptitude of VAT withholding agents.
In this way, they take responsibility for the tax obligation on the retention, declaration and payment of the corresponding taxes..
These agents are those taxpayers (legal and natural persons) who by law are obliged to withhold a portion of the income that they grant to third parties..
Investment funds and public law entities are withholding agents. Also disability and retirement pension funds, securities funds, organized communities and temporary unions.
In the same way, companies and other legal or natural persons, de facto companies and illiquid successions, that by their offices intervene in operations or acts in which they must, by express legal order, carry out the corresponding withholding of the tax..
There are also withholding agents for the industry and commerce tax. Each jurisdiction has its own tax statute and therefore has its own regulation in relation to withholding agents..
However, in most cases they agree with the income tax withholding agents. In this way, if an entity is a withholding agent of income tax, then the most feasible is that it is also withholding tax on industry and commerce..
A withholding is required at the time the payment of an amount subject to such withholding is made. It is defined that a payment is made to a person if that person receives income. This regardless of whether or not there is an actual transfer of cash or other property.
That is, a payment is considered made to a person if it is paid for the benefit of that person.
For example, a payment made to a creditor of a person to satisfy that person's debt to the creditor is considered to have been made to the person..
A payment is also considered made to a person when it is made to that person's agent..
The withholding agents also have the commitment to present the affidavit for the amounts withheld in a given business year during the corresponding period of each tax year..
As a withholding agent, you are responsible for any tax that must be withheld. This responsibility is independent of the fiscal responsibility of the person to whom the payment is made..
If it is not withheld and the beneficiary does not meet their tax obligation, then both the withholding agent and the person are liable for the taxes. Likewise of the interests and applicable penalties.
The applicable tax will be collected only once. If the person complies with their tax obligation, the withholding agent can still be held liable for interest and penalties for not having withheld it..
All withholding agents are required to file the income tax return on a monthly basis. There the amounts that you have withheld in the month concerned will be indicated.
The tax statute indicates that the withholding agent will not have to file a return in the monthly periods in which he has not made withholdings at source..
Obviously, the withholding agent will have to deposit with the Tax Department the amount of the withholdings that he has made..
It is not enough that only the withholdings made are declared. You also have to pay them, in addition to submitting the withholdings.
The obligation to deposit the withholdings that are made is very important. If it is not done, the declaration made of withholding at source will be considered useless..
The withholding agent has the obligation to send to the taxpayers who have had any withholding at source, the respective certificates in which the concept, the applied rate and the withheld value are recorded..
This is an important obligation. This is because the taxpayer is required to have such certificates in order to be able to deduct from their tax all the withholdings that have been made to them. Failure to do so, the withholding agent is exposed to a penalty, as indicated by law.
The sending of such certificates must also comply with the requirements demanded by law..
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