In Panama, a bill that establishes exemptions for those natural and legal persons specialized in the operation of industrial recycling plants was approved in the third debate.
The purpose of this new regulatory framework is to stimulate with environmental tax benefits the establishment of recycling companies, which do not exist in Panama, seen as an ideal process to end the problem of garbage accumulation in the country, informed the National Assembly.
The Cabinet authorized the Minister of Commerce and Industry to submit to the Assembly a bill to create the Special Regime for the Establishment and Operation of Multinational Companies for the Provision of Services Related to Manufacturing.
In Honduras, a law reform was approved that simplifies the procedures that local and foreign companies must follow to take advantage of the Free Zone Law and extends for 15 more years the benefits that it grants to the companies of the regime.
From the National Congress of Honduras' statement:
The law was more than 44 years old and needed to be updated to make Honduras competitive
In order for Guatemalan producers to compete under the same conditions as neighboring countries, the government is preparing a bill that seeks to exempt agricultural inputs from VAT.
The initiative, known as the "Fiscal Equity Law", is being prepared by the Ministry of Agriculture, Livestock and Food (Maga), because, according to the institution's top official, other Central American countries do not charge value-added tax (VAT) on agricultural inputs.
In Costa Rica, the Ministry of Finance decided to extend the deadline by 24 additional months so that the import of hybrid and electric vehicles can be done at reduced rates and in some cases without paying taxes.
With the publication of decree 42080-H-MINAE-MOPT in the edition of the Official Journal of Thursday, January 16, 2020, the benefits will be maintained until December 2021.
In Panama, a bill was approved that will grant tax exemptions until 2025 to those who make investments in hotels and recreational activities.
On December 31st, President Cortizo sanctioned the bill that provides tax incentives to the tourism sector by modifying some of Law 80 of November 8th, 2012.
By approving the changes to the Special Law for Exploration and Exploitation of Hydrocarbons, the country's oil sector contractors are exonerated from all taxes.
The amendments stipulate that transfers of agreed contracts shall not pay taxes during the exploration period, and the direct or indirect assignment or transfer of all or part of the rights derived under any modality for the activity of exploration and exploitation of hydrocarbons shall be exempt from any capital gains tax.
In Honduras, Congress extended for two more years the validity of the Law to Support Micro and Small Enterprises, which grants benefits such as exemption from payment of income tax and other taxes.
To opt for the benefits granted by the law, interested parties must process their permits, national and municipal licenses for its operation, reports a statement issued by Congress.
In Guatemala, Congress is discussing a bill that seeks to increase the arrival of flights to the country through tax incentives for airlines, which would be coupled with the elimination of improper tax charges.
On August 14, 2019, the President of the Legislative Branch, Álvaro Arzú Escobar, presented to Congress initiative 5585, which has the support of the International Air Transport Association (IATA), the Latin American and Caribbean Air Transport Association (ALTA) and the Guatemalan Association of Air Lines (AGLA). See full bill.
The Guatemalan Congress approved a bill that contemplates the creation of a special tax regime for agricultural activity.
Although this bill was involved in controversy days ago, as the chambers of industry and commerce expressed their opposition, Congress decided to approve the bill. See full bill.
Nayib Bukele returned to the Legislative Assembly the reform to the law of Free Zones that granted tax benefits for an additional period of 10 years to companies in the country to increase their investment in 100% with respect to the initially made.
On August 29, 2019, the Assembly informed that the Legislative Plenum endorsed the reform to the Law of Industrial and Commercial Free Zones, establishing that the users of these zones would have a term of 10 additional years (before there were five) to continue enjoying total exemption from taxes, which would be applicable once the period established for the regular enjoyment of this benefit expired.
In Guatemala, the chambers of industry and commerce oppose the bill that proposes to create a special tax regime for agricultural activity.
The project "Law on Simplification, Updating and Tax Incorporation", which has been in Congress for more than two years, was scheduled for final discussion until September 10. See full bill.
On September 2, Costa Rica began the registration of individuals and agricultural producers who wish to opt for the benefits contemplated in the new tax regulations.
The term began on Monday, September 2 and ends on January 31, 2020, and for registration interested parties must submit their physical or legal identity card, and literal certification of the property, informed the Ministry of Agriculture and Livestock (MAG).
A bill was presented to create fiscal and economic incentives for companies and individuals using electric vehicles.
The bill "Ley de Transporte Electrico", presented by the organization Mover El Salvador to the Legislative Assembly, seeks that each new electric vehicle or new hybrid electric vehicle be the object of benefits.
In El Salvador, it is proposed that the law discussed in the Assembly, considers the reduction of minimum requirements for investments made in special economic zones, to compensate for the disadvantages of lack of productive activity in the area.
In July 2018, the Executive Branch presented to the Legislative Assembly the draft Law on Special Economic Zones (LZEE), which is being analyzed by the Economy Commission.