Guatemala: Memo and March 2011 Tax Calendar

Items to be taken into account to carry out an annual transaction study between related companies.

Thursday, March 3, 2011


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Currently, several countries have existing legislation on transfer prices. The legislation regulates the elements that should be available to carry out an annual survey of transactions between related companies, as well as indicators serving as basis for determining if transfer pricing between related parties are within legal parameters.

In Guatemala clause 8 of the Tax Code empowers Tax Administration authorities to establish overall rates of return, averages and percentages, gross profit, net income or income by business and industry as well as other professional activities or techniques for better determining taxes.'' Article 53 of the Income Tax Law Income regulates CIF price of imported goods, detailing the formula used to set the price.

The price of exported goods will be calculated according to international prices on the date of shipment. However, in future export contracts, the export price of the goods shall be calculated according to the international trading price of future contracts on the date of reception of the goods, which must be included on the contract. These prices are minus transportation costs, insurance and other costs affecting those goods while arriving destination.

The prices are expressed in Quetzales and the currency exchange rate is the one on the date of contract closing. The Department is empowered to conduct investigations as it deems appropriate in order to determine the income received and the income subject to tax."

We believe that for SAT to have the power to adjust transfer prices there should be specific legislation, but in Prensa Libre dated February 15, 2011, we find an article named "SAT to monitor funds from multinationals" whose text is reproduced below:

"The prices of goods or services between multinational companies based in the country and their foreign branches will be subject to review by the Superintendence of Tax Administration.
"We created a department of international control to make transfer pricing between related companies is transparent," said Rudy Villeda, Superintendent of Tax Administration.
This relates to the transfer of funds and inter-company sales, so that goods and services are not transferred at a price below market, affecting revenues.
The official said the project is supported by the U.S. Treasury and a German cooperation agency.

The department would begin operations in March. The idea is to have more information on multinationals and related companies abroad, as they sometimes declare paying taxes in other jurisdictions, something that should be verified, he said.

We suggest the review of transactions between related companies, meaning, head office, branches, affiliates, groups of companies under common management.


March 2011 TAX CALENDAR

Monday 14, Employee Retention ISR SAT-No. 1054 SAT-No. 1055

Monday 14, 10% Tax Withholding Financial Products SAT-No. 1054 SAT-No. 1055

Monday 14, 5% Income Tax Withholding SAT-No. 1054 SAT-No. 1055

Monday 14, direct and final payment of 5% of ISR SAT-No. 1044 SAT-No. 1249

Monday 14, Special Billing ISR Holding (6.02% and 3.1%) SAT-No. 1054 SAT-No. 1055

Monday 14, Profit Retention for those not domiciled in Guatemala (Articles 33, 34, 35 and 36 of the Act) SAT-No. 1094/1095 SAT-No. 1096/1097

Monday 14, fiscal stamps and sealed paper 10% (lotteries, raffles and drawings) SAT-No. 1004 SAT-No. 1007

Monday 14, Press Seal 1 P S P-01

Monday 14, printing invoices report, special invoices, debit and credit notes SAT-No. SAT 43-No. 149

Monday 21, IGSS fee and INTE IRTRA CAP

Monday 21, non-resident income tax withholdings in Guatemala (Article 45 of the Act) SAT-No. 1094 SAT-No. 1097

Monday 21, Affidavit of tax withholding (Decree No. 20-2006) SAT-No. 2219

Monday 28, OPA Declaration and sealed copy to the Department of Industrial Policy (Decree No. 29-89)

Thursday 31, Special VAT Invoices (until February 28, 2011) SAT-No. 2083 SAT-No. 2086

Thursday 31, affidavit and monthly payment of VAT for local operations (as of February 28, 2011) SAT-No. 2231 SAT 2239

Thursday 31, affidavit monthly VAT as well as Import and Export (to February 28, 2011) SAT-No. 2151 SAT 2159

Thursday 31, affidavit and annual Income Tax payment, General Conditions and Optional (January to December 2010)

Thursday 31, annual reconciliation of employee withholding (January to December 2010) SAT-No. 1072 SAT-No. 1082

Thursday 31, partial exemption from fines and surcharges 95% Government Agreement 46-2011



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Friday 14 - Employee Retention ISR (ISRJ Law Article 63 - SAT-No. 1054 - SAT-No. 1055

Friday 14 - 10% Withholding Tax on Financial Products - SAT-No. 1054 - SAT-No.1055

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On January 24, 2011, it was published in the Diario de Centro America, the ruling of the Constitutional Court regarding the unconstitutionality of the provision issued by the Superintendent of Tax Administration, Rudy Baldemar Villeda Vanegas, of not accepting the contributions made by customers of the Pension Fund for Retirement as a deduction in the process of determining the income tax in the year 2010.

Guatemalan Tax Calendar for December 2010

December 2010

December 2010 due dates for tax liabilities generated in November 2010

Tuesday, 14th Employee Retention ISR SAT-No. 1054 SAT-No. 1055

Tuesday, 14th 10% Tax Withholding for Financial Products SAT-No. 1054 SAT-No. 1055

Tuesday, 14th Suppliers retention - 5% of income tax

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January 2012

Memorandum on "Minimum Wages 2012", and repayment schedule for payment of tax obligations for December 2011.

January 2012 Tax Calendar

The deadlines reported in this month correspond to obligations for December 2011.

Friday the 13th Schedule of VAT (January to December 2011) 1119

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