The tax domicile is understood in a general way for individuals as the main establishment where their business is located, or if not having one, its home address; while in the case of companies or corporations it will be where the company headquarter is located or if having several establishments where the main administration of the business is located or, if applicable, the one designated by them.
It is important to correctly fix the address that the individual or the “company” will use, since it is precisely the location of the fiscal domicile, the place where the taxpayers will be at the disposal of the Tax Authority in order to verify, in general, the correct compliance with the applicable tax legislation, and will be the place where the authority may notify them about the respective acts of Authority, for example, may request various information to verify compliance with tax obligations or, even, where it would start the verification powers of the fiscal authority.
Being that in case there is a change of address, it must be notified to the tax authority within ten days following that in which the change was made; however, only in case the tax authority is exercising its powers of verification the notice must be made five days in advance of that is done.
However, in order to prevent the authority from considering that the individual or “company” intends to avoid or impede the exercise of the powers of the authority and that a greater problem is generated for any taxpayer, the latter, must give the opportune notice about the change of tax domicile in accordance with applicable laws.
Equally, it is important to know that in the tax domicile is where those persons who are compelled to keep accounts must have the supporting documentation about the entries or records that make up the accounting so that in case the tax authority requests it, they are provided and so verify compliance with tax provisions.
Given the above, it is important that both individuals and companies are correctly advised if they are going to start activities or if they intend to change their address so that the respective procedures are carried out correctly and thus avoid greater problems and contingencies with the fiscal authority in the future.