El Salvador: Coffee Farmers Request Exemption From ISR  

At the request of producer cooperatives Congress is considering eliminating the tax for the sector.

Tuesday, December 10, 2013

What has been suggested is reforming a decree which "designates a 1.5% retention of Income Tax (ISR by its initials in Spanish) on cooperatives for their agricultural activities, which according to these entities affects them, because they generate illiquidity and this prevents coffee farming being a sustainable activity," noted an article in Laprensagrafica.com.

Cooperatives explained that according to the law that governs them, they are exempt from paying taxes, but this does not apply to the coffee category. These entities reminded Members of the problems they are facing such as smaller crops due to pests and diseases, increases in production costs and limited access to financing.

Producers, processors and exporters of coffee also requested that the income tax law be reformed with the aim of them being granted tax benefits and that cooperatives be included on the list of those exempt from the minimum payment of 1% of the income earned or gross income.

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The Ortega administration rejected the request of Nicaraguan coffee growers, who requested that the tax of one dollar per quintal exported be waived for the 2020-2021 harvest.

The decision to start charging from next year was published by the Ministry of Development, Industry and Commerce (Mific) in the October 15, 2019 edition of La Gaceta.

Costa Rica: VAT Exemption for Some Sectors

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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%.

Nicaragua: Tax Exemptions Extended

December 2014

The draft law on Tax Coalition will extend exemptions until March 2015 and maintain tax free income for international cooperation given to nonprofit organizations.

Some of the goods included in the list of exemptions are books, magazines, school supplies, medicines, vaccines, agricultural goods, rice (except packaged rice or packages equal to or less than fifty pounds and higher quality presentation than 80/20), sugar cane (except for special sugars), vegetable cooking oil, corn, and coffee grounds, among others.

Guatemalan Coffee Growers Reject Anti-Evasion Plan

September 2011

The coffee sector has announced its opposition to a proposal to establish a 5% surcharge on Income Tax (ISR in Spanish) for the agricultural sector.

A press release by Anacafé states:

The Guatemalan coffee industry via the National Coffee Association, Anacafe, has expressed concern about the establishment of a 5 percent surcharge on Income Tax,, referred to in the draft Anti-Evasion Act II which is now being considered in the Congress of the Republic. Political parties in their current campaigns have said that they will not raise taxes, their representatives in the legislative body have already made agreements to approve them.

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