Air Transport: Simplifying Tax Payments

With the reform approved by Congress, the airlines will avoid paying VAT and income tax twice.

Thursday, January 23, 2020

The reforms that will come into effect in January 2021 were approved by Decree 2-2020, which received the endorsement of the Legislative on January 20.

You may be interested in "Tourism and Travel: Consumer Interests and Preferences"

With the approved modifications, the tax system was adapted so that the taxes charged to airlines operating flights in Guatemala but with their headquarters abroad, are applied taxes according to international standards.

Motty Rodas, director of the Airline Association (Agla) explained to Prensalibre.com that "... this law has nothing to do with tariffs, which are made up of many variables, but by having the certainty and adequate collection of taxes, more airlines can be motivated to arrive and achieve more competitive ticket rates in the medium term."

See "More Tourists Arriving in Guatemala"

Luis Rey, president of the Guatemala Chamber of Tourism (Camtur), said that "... this new legislation will attract more airlines to the country and will open more routes and flights that will result in more competition and lower prices for the service."

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