Guatemala's government has issued the Tax Update bill, which will take partial effect within eight days.
According to Decree 10-2012, the new National Customs Law, changes to Value Added Tax, Stamp Duty and Stamped Paper Protocols Tax will all take effect in eight days, while the changes to Income Tax, Early Registration tax and Road Tax will take effect in 2013.
Shipping companies accept payment for inspection of containers but are asking for the removal of the charge for the "traceability tax disc" on the part of port companies.
Industry representatives argue that charging twice for stamps used for international transit through the container ports Quetzal and Santo Tomas de Castilla, breaches the agreement reached between business and the government in October 2014, when "...Tariff schedules were agreed by Empresa Portuaria Quetzal. "
As of March 13th, the second exchange or sale of real estate will not pay VAT, just 3% stamp duty.
The Tax Update Law (Decree 10-2012), which entered into force on Tuesday 13th March, indicates that Value Added Tax (VAT) of 12% will be paid only on the first transaction of a property. Taxpayers will pay only 3% stamp duty.
Another change is that schools may no longer benefit from VAT exemption for school transportation, sale of supplies, uniforms, etc; from now on they are required to submit invoices. The only items exempt are registration, tuition and examination fees, reports Prensalibre.com.
Once publicized in the official newspaper, the new law passed by the Guatemalan Congress on 27th January, will take effect from February 25th .
The new law restores the higher tax rate on tobacco which had been removed last year and establishes special invoices for farmers, among other things.
Siglo21.com.gt in its publication reports, "The new law has 75 articles in which there are amendments to Value Added Tax (VAT), and taxes on land, sea and air vehicles. There are also reforms to the Tax Code, Law on Revenue Stamps and Stamped Paper Protocols, Law on Tobacco and related products, and finally a change to articles and their reforms in the Penal Code. "
Exporters anticipate that with the stamp bearing the geographical indication, bananas entering the European Union will be more competitive.
From a statement issued by the National Banana Corporation:
Recently the European Union-Central America Association Council formalized the use of a Geographical Indication (GI) called Banana from Costa Rica, a quality seal that identifies the origin and prestige of the fruit.
The tax system in Costa Rica is chaotic, complex, unfair, disproportionate, inequitable, and ineffective, which affects development and competitiveness, encouraging tax evasion and smuggling.
In an analysis piece in Elfinancierocr.com items, Danilo Villalta notes the need for comprehensive reform of the Costa Rican tax system, starting with a "strategic planning process" to approve a plan "agreed with the various political forces, and subsequently according to that plan, develop bills with the participation of specialists in order to have legislation that is clear, transparent, simple and easy to apply by the administrator and the taxpayer. "
A draft submitted by the Executive aims to reform six laws in order to increase tax revenues.
A press release by the Congress of the Republic of Guatemala reads:
The Board of the Congress, headed by Deputy Gudy Rivera, received on 3rd February a visit from the President of the Republic, Otto Perez Molina, who along with Finance Minister, Pavel Centeno and the Secretary General of the Presidency Gustavo Martinez, officially handed over a tax reform which seeks to reform six laws for the primary purpose of increasing tax collection and controling the pace of debt maintained by the State, which is growing.
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