Financial Education - Powers of the states in the matter of subjection to the general tax laws

Only state laws are responsible for regulating tax matters subject to the general tax rules, whose regulatory codes constitute sources of tax law containing acts with general force to the particular.

The institutions that enforce the general tax rules are responsible for creating, modifying or eliminating taxes; defining the taxable event; fixing the rate of the tax, the basis for its calculation and indicating the taxpayers, granting tax exemptions and reductions.

In addition to authorizing the executive power to grant exemptions and other tax benefits or incentives, the other matters referred to them by the corresponding regulations, in this sense the national, state and municipal legislative bodies, when sanctioning the laws establishing exemptions, benefits, rebates and other tax incentives or authorizing the executive power.

Basically, in order to grant exemptions, they will require the prior opinion of the respective Tax Administration, which will evaluate the economic impact and will indicate the necessary measures for its effective fiscal control, likewise, the corresponding legislative bodies will require the opinions of the advisory offices they have.

In no case may the definition and fixing of the elements integrating the tax as well as the other matters indicated as of legal reserve by this article be delegated, without prejudice of the provisions contained in the regulations; however, the law creating the corresponding tax may authorize the National Executive to proceed to modify the rate of the tax, within the limits established therein.