Guatemala: Government Expands Tax Reform

Despite several announcements of new taxes, the government will focus on controlling tax evasion and leave the decision to implement a tax reform to future administrations.

Tuesday, February 3, 2015

According to authorities at the Ministry of Finance, at the moment there is no consensus for fiscal reform. The priority now will be to pursue and strengthen tax administration in order to meet budget expenditures this year. Instead of implementing new taxes, they will seek to "... reduce default levels mainly in Income Tax (ISR) and Value Added Tax (VAT)." reports that "... The taxation scheme is still being analyzed in order to put forward a proposal that has long-term impact, and the first step will be to strengthen the work of the Tax Administration (SAT). " "... Reducing VAT and income tax evasion by 2% could raise up to $261 million and $130 million corresponding to a tax on telephony. "

Fernando Spross, an analyst at the Development Foundation of Guatemala, added "... In order to strengthen [the system] the SAT should start with the board of the organization and with the control mechanisms which are already in place. " "... The proposal made by the authorities includes strengthening the computer system, so that, among other things, it operates taxpayer current accounts and avoids crashing the customs system; the exchange of information. "

More on this topic

Costa Rica: Tax Exemptions Revised

February 2015

As part of a plan to reduce the fiscal deficit, the Finance Ministry is preparing a bill which aims to amend the existing tax exemptions scheme.

This project also seeks to create penalties for 1,259 misuse of tax breaks reported by the Technical Services Department up until 2014. It is anticipated that the initiative will be submitted to the Legislature in no more than two weeks.

Costa Rica: Anti Tax Evasion Bill

June 2014

The new Solís administration plans to establish the Value Added Tax and demand proof of tax payment for procedures in public institutions and on application for bank loans.

The tax reform being prepared includes a bill to reform income tax. This is part of a project by the Ministry of Finance which includes 55 specific actions among which are changes in the area of ​​income, reducing government spending and control of state borrowing.

Tax Reform to Reduce Public Spending

January 2013

In Costa Rica a new tax reform package includes an attempt to reduce state expenditures by 1% of GDP.

The Finance Minister Edgar Ayales, outlined to to the details of a new attempt to correct the deficiencies of the Costa Rican tax system, while curing the problems in public finances.

New Fiscal Rules Effective in Nicaragua

January 2013

On January first new rules came into force on taxation which reduce income tax, and others that aim to reduce tax evasion.

The government hopes that with this new reform it will increase productivity and competitiveness.

"The law brings new issues, such as a fiscal method for separating of incomes: into earned income, income from economic activity and income from equity.

 close (x)

Receive more news about Public Finance

Suscribe FOR FREE to CentralAmericaDATA EXPRESS.
The most important news of Central America, every day.

Type in your e-mail address:

* Al suscribirse, estará aceptando los terminos y condiciones

Costa Rica ECO-Residential Development & Business

Real Estate Development & Adventure Park Jacó, Costa Rica. Multiple Investment Opportunities Available.
The Ocean Ranch eco-residential development is located...

Stock Indexes

(Apr 6)
Dow Jones
S&P 500


(Aug 5)
Brent Crude Oil
Coffee "C"