The regulation that grants tax benefits on imports of electric cars has come into force in Costa Rica, and according to agencies it will help final prices to fall between $5 thousand and $10 thousand per unit.
The regulation that will allow the entry into force of the law was published in La Gaceta, and will enable electric vehicles that have been held in Costa Rican customs offices to be released.
Agricultural machinery and equipment, retreads and tires for machinery could be exempt from 13% VAT, if the substitute text of tax reform that is being discussed in the Legislative Assembly is approved.
The same exoneration would apply to books in all their formats, which in the original bill presented by the government had a differentiated rate of 4%.
A decree reform to promote local tourism, and a bill that would grant tax exemptions for investments in certain tourist sites, are some of the proposals to boost tourism activity in Guatemala.
In addition to the decree that moves holidays to a Monday or Friday in order to favor destinations which are further away by creating long weekends, and the bill that would give tax benefits to investments in tourist sites, authorities at the Guatemalan Institute of Tourism also intend to modify the institution's Organic Law.
The ICEFI states that the proposed reforms to the Free Zones Law in Guatemala encourage a public investment model based on tax privileges for specific groups of companies.
The Central American Institute of Fiscal Studies (Icefi) reiterates its arguments against continuing an obsolete and ineffective model of attracting public investment based on tax privileges for specific groups of companies and encourages the initiation of the discussion on a general investment law. For this reason, it does not recommend to the Congress of the Republic the approval of the reforms to the Law on Free Zones contained in the legal initiative with the registry number 5174.
Distributors of electric cars in Costa Rica estimate that with the entry into force of the law, prices of these vehicles could fall by between $5 thousand and $10 thousand.
According to vehicle distributors, with the implementation of the "Law on Incentives and Promotion of Electric Transportation" that was approved bythe Legislative Assembly last monthand which was signed by President Solís on January 25, prices of electric vehicles could come down by between $5 thousand and $10 thousand.
With the law approved by the Legislative Assembly of Costa Rica, electric vehicles are exempt from the general sales tax, the selective consumption tax and the customs value tax.
Finally, the Legislative Assembly has approved, in a second debate, the Law on incentives and promotion of electric transport, which aims to encourage the purchase of these types of cars in the country.
In Nicaragua, the Ortega administration is proposing to extend tax benefits for energy generation projects using renewable sources for another five years.
Continuing with the strategy of promoting energy generated from renewable sources, the government is proposing extending tax incentives for these types of projects, as it did in June 2015.At that time, the benefits were extended until January 2018.
The Legislature has approved the exempt from fines, interest and surcharges to those who are behind in the payment of tax and customs obligations, for a term of three months.
From a statement issued by the Legislature:
In order to allow people who owe this tax to regularize their situation without acruing interest or surcharges, the Legislature has authorized the issuance of the Transitory Law to Facilitate Voluntary Compliance with Tax and Customs Obligations.The effects of this measurewill be effective within a period of three months from its entry into force.
Agribusiness entrepreneurs in Panama claim that the procedures for obtaining fiscal benefits for production and export can take up to 2 years.
Two of the incentives most sought after by entrepreneurs are the Certificate of Promotion of Agroexportation (CEFA) and the Certificate of Promotion of Productivity (CFP), which recognize, and can therefore be deducted from the payment of income tax, expenses related to wrapping, packaging, and internal freight of the product.According to the Panamanian Association of Nontraditional Agroexportadores (Gantrap), the complete process to obtain these can take up to two years.
In 2016, the ratio between total expenditure of central governments of the countries of the region and GDP remained almost unchanged from the previous year, going from 18.3% to 18.6%.
From the report "Macroeconomic Profiles: 8th edition", from the Central American Institute of Fiscal Studies (Icefi):
The Central American Institute for Fiscal Studies (Icefi) presented its most recent edition of the Macro-Fiscal Profiles of Central America, which contains an analysis of the fiscal situation of Central America and each of the countries of the region, at the end of fiscal year 2016, as well as the main lines contained in the budgets approved for 2017.The publication includes in this opportunity a revision to the main indicators related to the fulfillment of the Sustainable Development Objectives 2030 -ODS 2030- and raises the urgent need to make progress in a new fiscal agenda that allows the effective attention of these commitments in the short term.
A new bill, agreed between the government and the private sector, expands tax incentives granted to companies in the sector through the Certificate of Industrial Promotion.
The text was drafted after the government and the private sector reached consensus on how to define tax incentives to which companies in the sector are entitled to.The project will be submitted to the Cabinet this month and will be discussed in the current legislative period.
The bill presented by the government includes exemption from income tax and property taxes and for transfers of companies engaged in reforestation activities.
From a statement issued by from the National Assembly:
Environment Minister, Mirei Endara, presented on Wednesday, to the plenary of the National Assembly, a draft law establishing an incentive program to restore forest cover and promote conservation of natural forests.
With the new law an extension has been granted until December 31st, 2017 for tax benefits granted to companies registered in the National Industry registry, which were to expire on December 31, 2016.
From a statement issued by the National Assembly:
As an instrument to promote the strengthening and growth of the industrial sector, the National Assembly approved, on a third reading, Bill 413, amending an article of Law 28 of June 20, 1995, whereby measures are taken to achieve the universalization of production incentives and other provisions.
The Panamanian private sector advocates approval of the bill that would give the operator of the port at Corozal the same tax benefits as other companies.
From a statement issued by the Chamber of Commerce, Industries and Agriculture of Panama (CCIAP):
Panama, November 8, 2016.The Chamber of Commerce, Industries and Agriculture in Panama (CCIAP) developed the first national forum ahead of the proposed construction of the port in Corozal -on the Pacific side of the water-way- with a view to exploring diversification of opportunities for new business in order to make maximum use of the expanded Canal.
According to the ICEFI, "tax incentive policies seem to be a lost opportunity because of permanent tax expenses and the lack of tangible social benefits."
From a statement issued by the ICEFI:
Within the framework of the international meeting on Tax Justice and Transnational Fraud, held in Costa Rica, a study was presented on October 20 entitled 'The effectiveness of tax incentives for investment in Central America' in which an analysis was undertaken of the Central American experience in investment attraction through tax incentives.