Characteristics of the tax within the territory and economic activities

The tax on economic activities is a tax levied on gross income arising from any economic activity, industry, trade, commerce, services or similar nature, carried out on a regular or occasional basis in the jurisdiction of a given territory.

Namely, of a territory that may be subject to a commercial establishment, premises, office or physical place and whose purpose is profit, the tax on economic activities has the following characteristics.

The first is its character as a local or territorial tax, applicable within the spatial scope of a given municipality. It is applicable in and from the jurisdiction of a municipality regardless of whether the spatial or territorial area where the taxable event is developed or arises is in the public or private domain of another territorial entity.

It is a tax that levies lucrative activities that produce the exercise of industry, service, commerce or similar nature, of independent character, even when these activities are carried out de facto, that is to say, that the taxpayer or responsible acts without previously obtaining a license, in addition it is not a sales or consumption tax even when it levies the income from sales.

In principle, it is linked to a commercial establishment, agency, office, branch or physical place where the lucrative economic activity of commerce, service, industry or activity of similar nature will be exercised.