ARCA provides an alternative for settling outstanding balances through VEP, without the need to register for income tax or file an annual tax return, provided the specified conditions are met.
In connection with the annual income tax settlement for the 2025 tax year, it is essential to review Form F.1359 issued by the employer or withholding agent to determine whether there is any amount outstanding. If Form F.1359 shows an amount due, the taxpayer may settle it using an Electronic Payment Slip generated through the “Filing of Affidavits and Payments” service. This option allows taxpayers to avoid being registered for the tax and filing the annual tax return, provided that the conditions set forth in the regulations are met.
Key considerations:
- Review Form F.1359 issued by the employer or withholding agent.
- Check whether there is any outstanding tax balance.
- Evaluate whether to use the VEP payment mechanism or, alternatively, whether you wish to register and file the corresponding affidavit.
- Make the payment by the due date for individual income tax. The 2025 tax year is due on July 27, 2026.
As the end of the 2025 tax year approaches, reviewing each situation in advance allows you to determine the applicable treatment and, where appropriate, avoid unnecessary compliance burdens.
At Andersen, we are available to assist you with reviewing Form F.1359, analyzing outstanding balances, and evaluating the most appropriate option for resolving these issues.
Pablo Lo Vento
Tax Director
Pablo.LoVento@ar.Andersen.com