Alternative minimum tax in times of crisis – Mon July 26, 2021

The government confirmed its intention to impose an alternative minimum tax (AMT) after the finance minister presented the proposal to Committee XI of the House of Representatives responsible for overseeing finances. The plan is part of a package of tax reforms that will be implemented next year through the Fifth Amendment to the General Provisions of the Tax Law.

Details of the plan are still under discussion, but it has generated both positive and negative reactions, especially in the corporate sector. Despite the controversy, the policy was written in good faith, i.e. to minimize aggressive tax planning. However, certain circumstances must be taken into account, especially due to the pandemic crisis, the end date of which cannot be known.

Initially, the AMT applies to corporate taxpayers and coexists with the current tax calculation system. Accordingly, the int …