The Internal Revenue Service (SRI) has initiated a nationwide review targeting 1,500 taxpayers who earn income from leasing real estate properties. The focus is on those who have used alleged deductions to reduce or eliminate their tax payments.
Damián Larco, general director of SRI, stated that the tax authority discovered a pattern of inflated deductions linked to rental income in the 2024 income tax returns. According to Larco, “in the review processes carried out, cases were identified where reported deductions exceeded rental income by up to 150%. For example, taxpayers with incomes of USD 100,000 and deductions of USD 150,000 were detected, resulting in an alleged declared loss of USD 50,000.”
These discrepancies amount to a revenue difference of approximately USD 5 million. As a result, SRI has implemented a comprehensive control and verification program aimed at ensuring that property lessors comply with current tax regulations.
The law specifies which expenses are deductible for rental income. Any deduction outside these categories or not properly supported by invoices is considered non-deductible and cannot be used to lower tax payments.
With this measure, SRI aims not only to identify and correct errors in tax filings but also to promote fairness in compliance and prevent practices that may constitute tax evasion.
“Those taxpayers who have been notified by SRI about these inconsistencies must amend their previously submitted returns, calculate the correct tax due, and include any applicable interest or penalties; otherwise, control proceedings will begin immediately,” said Larco.
The agency will continue focused verifications to detect and curb tax evasion.
