Guatemala: Agreements on Advanced Pricing with SAT

The Tax Authority announced special audits in companies with "related parties abroad", which can be avoided by presenting an Agreement on Advance Pricing.

Thursday, March 12, 2015

This year nine audits are being carried out with the objective of corroborating "... suspicions raised when key rights or trade credits have been created." According to a study conducted by risk teams to implement transfer pricing, coffee, bananas, sugar, fuels and metals sectors are reporting increased risk in their transactions.

The Superintendency of Tax Administration (SAT) noted that "... The companies benefit from reducing the margin of risk of circumvention and avoiding special audits if they voluntarily present an Advance Pricing Agreement. The report can be submitted voluntarily, companies are required to keep it up to date because the collection agency can ask for it at any time. "

Carolina Castellanos, executive director of the Guatemalan Chamber of Commerce (AmCham) told Elperiodico.com.gt that "... control in the application of transfer pricing is appropriate. This is so that Taxpayers do not use pricing strategies to move profits corresponding to Guatemala, to other jurisdictions, avoiding paying tax or paying less tax. However, a prudent timeframe should be established for employers and tax administration to review the prices agreed."



More on this topic

Transfer Pricing in Guatemala

January 2015

With entry into force once again of the rule on transfer pricing, companies must take into account all the requirements in order to avoid penalties and adjustments to income.

The regulations in force since January 1 require taxpayers to adequately demonstrate and justify "... the amounts of payments and / or profit margins in their transactions with related parties" in order to ensure fair competition and collection of taxes.

Guatemala: Uncertainty Over Application of Tax Law

April 2014

Employers are complaining that the lack of clarity over how the income tax law is applied is generating legal uncertainty.

The law on income tax that arose from the tax reforms two years ago is still raising doubts among private entrepreneurs, who believe that the lack of clarity on how it should be implemented not only casts doubts and causes legal uncertainty, but also generates more informality.

Guatemala: Plans to Streamline Customs Offices

July 2013

The Tax Authority has approved the implementation of a pilot program in customs offices which will reduce the time it takes to inspect containers.

According to the Indendent of Customs, Filadelfo Reyes, the plan will come into effect on August 2. "We want to facilitate foreign trade operations in customs with this new methodology," the official said.

Guatemala: Call for Suspension of Customs Law

March 2012

The American Guatemalan Chamber of Commerce noted that the implementation of the Act without the respective regulations is confusing, taking away transparency in the system and increasing costs.

The Guatemalan Chamber of Commerce (AmCham) has requested that the Government suspend the Customs Act, which was included in the recently approved tax reform.

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