The National Securities Commission has produced, since June 1992, a series of regulations covering requirements for the opening of securities exchange and brokerage firms, qualifying issuing corporation, etc. The Stock Market initiated operations and the economic agents expect that this institution will provide a valuable service in making private investment more dynamic. Among the reforms designed to create compatibility with the market economy, Law No. 125 of 1991 was promulgated, which introduced important reforms to the tax system. The VAT replaces numerous outdated and complicated taxes that incurred high administrative costs.
Income tax applies to corporations and businesses.
Personal income tax does not exist. Reduction of Administrative Costs Income tax is applicable to corporations and businesses. There is no personal tax. The tax reform also created a selective consumption tax, a tax on the marketing of cattle and a tax on acts and documents. With this tax reform, the Government expects to increase the fiscal income and reduce administrative costs.