Tax Coverage

The Wrong Tax Category Costs You at Filing

Apply the wrong retention category to a transaction and nothing warns you. The error surfaces weeks later at filing, when a correction means amended returns and penalty exposure. cifraHQ enforces the right category across all six retention types, so the classification is settled before the transaction posts, not after.

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Income Tax
VAT/ITBMS
Municipal
Social Security
Dividends
Special Taxes

The Real Cost of a Miscategorized Transaction

When retention categories live in a spreadsheet or a clerk's memory, the wrong rate gets applied and no one notices until the declaration is being assembled. By then the invoice is issued, the vendor is paid, and fixing it means reopening a closed period. A single miscategorized line can cascade into an amended filing, a recalculated payment, and questions from the tax authority that a finance team would rather never field.

Complete Tax Retention Coverage

Each category enforces the specific rules of that tax type, so the correct rate is applied automatically instead of relying on someone to remember which classification a transaction belongs to.

1

Income Tax Retention

Withhold income tax on payments to vendors, contractors, and service providers based on their classification.

Example Rates
Services (Individual) 5%
Professional Fees 10%
Corporate Services 2.5%
2

VAT/ITBMS Retention

Retain a portion of VAT/ITBMS on purchases when required by tax authority designation.

Example Rates
Large Taxpayer 50% of Tax
Special Agent 75% of Tax
Full Retention 100% of Tax
3

Municipal Taxes

Local government taxes and license fees that vary by municipality and business type.

Example Rates
Business License 1.5%
Industry Tax 0.5%
Services Tax 2%
5

Dividend Withholding

Tax withholding on dividend distributions to shareholders based on residency and tax treaties.

Example Rates
Resident Individual 10%
Non-Resident 20%
Treaty Rate 5-15%
6

Special Taxes

Industry-specific taxes like telecommunications, insurance, mining, and other regulated sectors.

Example Rates
Telecom Tax 5%
Insurance Premium 2%
Financial Trans. 0.4%

Pre-Configured by Country

Each country arrives pre-loaded with its own categories, rates, and filing rules, removing the guesswork that leads to misapplied retention in the first place.

Country Income VAT Municipal Social Dividend Special
Panama Panama
Mexico Mexico
Colombia Colombia
Peru Peru
See All 35+ Countries

Complete Tax Coverage for Your Business

See how cifraHQ handles all your tax retention requirements.

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