The SII has issued Circular No. 37 providing the updated tax tables for the Second Category Single Tax (Impuesto Único de Segunda Categoría) applicable to October 2026. These tables determine the withholding amounts for salaries, wages, and pensions. The circular includes additional information related to the tax, such as deductions and allowances. Employers must apply these tables for payroll processing in October 2026 to ensure correct tax withholding.
Key Takeaways
- Updated Withholding Tables: The new tables reflect the latest tax brackets and rates for the 2026 tax year, ensuring accurate payroll tax deductions.
- Employer Obligations: Companies must integrate these tables into their payroll systems before the October payment cycle to avoid under- or over-withholding.
- Additional Guidance: The circular includes supplementary information on applicable deductions and special cases, aiding compliance for complex compensation structures.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement