Regulatory implementation · Financial years 2025 to 2027

Pro Pyme: 12.5% rate and its application in 2026

The First Category Income Tax reduction requires correct identification of the applicable tax regime.

The development

SII Circular No. 53 of 2025 explains the reduction to 12.5% for financial years 2025, 2026 and 2027, under Law No. 21,755. This is an earlier rule with significant effects during 2026.

The benefit applies to the Pro Pyme General regime under Article 14 D No. 3. Businesses under the tax transparency regime in No. 8 are exempt from First Category Income Tax.

Why it matters

Before projecting the tax burden, the regime should be confirmed and the financial year distinguished from the tax year, also reviewing the corresponding provisional monthly payments (PPM).

Sources

Published by Piracés Abogados · 12 October 2026. General information: its scope must be assessed in light of the circumstances of each matter.