The National Superintendence of Customs and Tax Administration (Sunat) reported that, this 2023, people who are in the fourth and fifth category may request the suspension of withholdings and/or their payments on account of Income Tax, as long as do not exceed certain amounts.

With the new amount that the Ministry of Economy and Finance (MEF) ordered on the Tax Tax Unit (UIT), which rose from S/4,600 to S/4,950 as of January 1, 2023, a larger group of taxpayers will be free of the payment of Income Tax (IR).

It is worth mentioning that the suspension of the IR payment withholding takes effect from the day after the date of the procedure and its validity is until December 31, 2023. Find out more.

What is Income Tax?

The Income Tax is a tribute that is collected once a year and taxes all the profits obtained from a job or from the exploitation of capital, whether it is a movable or immovable asset. This tax must be compulsorily paid by the beneficiary of the income; that is, the person who works or the owner of a business.

Who can request the suspension of withholdings this 2023?

In accordance with the Sunat, they can request the suspension of withholdings and/or their payments on account of Income Tax:

• Those who project that their income during 2023 from Fourth Category Income or from Fourth and Fifth Category Income does not exceed S/43,313.
• Directors of companies, trustees, agents, business managers, executors or similar, who plan to receive in the taxable year for Fourth Category Income or for Fourth and Fifth Category Income do not exceed S/34,650.

Steps to suspend the fourth category withholding of Income Tax

The process to request the suspension of Fourth Category withholdings is virtual. Follow these three steps:

1. Enter Sunat Online Operations with your SOL Code and place the option “My procedures and Consultations”. This module is available on the portal www.sunat.gob.pe.
2. Locate the “Other Statements and Requests” section. Click on “I request Suspension of Withholding 4th Category” (Virtual Form 1609).
3. Specify the date on which you received the first income from Fourth Category Income and the total amount projected for the entire year (only Fourth Category income must be recorded, as an independent professional or Fourth and Fifth Categories, if, in addition, you are on spreadsheet).

How do I know if my rent suspension request was approved?

The Sunat indicates that the system will verify “online” the information presented and will proceed to authorize the suspension of v and/or payments on account, if applicable, issuing the corresponding certificate that can be sent to the email address of your choice.

The measure takes effect from the day after the date of the procedure and is in force until December 31, 2023.

Source: Management