Patrimony Tax Law and Legal Definition
Patrimony tax is an annual tax, complementary and accessory to the tax on income, on the patrimony possessed. The patrimony tax is assessed by means of sworn declarations of the taxpayers, in the same diligence, on occasion of the assessment, demand, and collection of the tax on income, and in accordance with the regulation that the executive decrees.
The patrimony tax is a tax on property and results in a levy upon the net value of the taxpayer's assets that include any unrealized appreciation of the value. It is computed separately from the income tax from information respecting the taxpayer's assets and liabilities. The patrimony tax does not give effect to items of income and expense. [Lanman & Kemp-Barclay & Co. of Colombia v. Commissioner, 26 T.C. 582 (T.C. 1956)].
