As from 2020, tax year 2021, the new tax regimes included in Law No. 21,210 on tax modernization come into force: (i) article 14 letter A, complete regime, (ii) article 14 letter D number 3, pro-small and medium-sized companies regime, and (iii) article 14 letter D number 8, transparent pro-small and medium-sized companies regime. The pro-SME and transparent pro-SME regimes calculate their taxable income (amount on which the income tax rate is applied) on the result of subtracting the income effectively received and the expenses effectively paid. This means that companies under these regimes are not required to keep complete accounting records (balance sheet, journal and general ledger), which are replaced by other specific records. Beyond the effects that this may have on the first category tax that the company determines and pays, the exemption to keep full accounting records is only for tax purposes and should not be considered as a "permission" not to have accounting in the company.