Dispute Over Items in Fiscal Reform in Guatemala

The Chambers of Commerce and Agriculture submitted to the 4th Constitutional Court challenges against fifteen articles of the Tax Update Law.

Friday, January 25, 2013

These challenges are in addition to those presented last week by the Association of Coffee Exporters, and which will be submitted today, January 25, by the Guatemalan Chamber of Construction, the National Association of Home Builders and Contractors' Guild.

The challenges presented by the Chamber of Commerce and of Agriculture, "focus on eight topics essential to them because they affect their members and encourage many businesses to close down or become informal. Certain themes are the prepayments of Income Tax (ISR), the obligation to appraise at market value all types of transactions including services, the elimination of the tax credit on bills in the small taxpayers regime; questions about the authority that is given to the authority of taxation (SAT) to close businesses and the increase on the sales tax on vehicles.

Jorge Briz, President of the Chamber of Commerce, said the income tax payments force an end of period closure ten days after every quarter, when it used to be 90 days at the end of every year, and found that 99 percent of companies are unable to fulfil the obligation", reports Elperiodico.com.gt.



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