Guatemala: Objections to Exonerations in Tax Bill

Being called into question is the establishment of a reduction of income tax payments when calculating as a deductible expense extra benefits given by companies to their employees .

Thursday, July 4, 2013

The accusations were made by some MPs who met with the acting head of the Superintendency of Tax Administration (SAT), Omar Franco and Deputy Minister of Finance Durval Carias. During the meeting, the congressmen noted that the initiative "contains 27 articles that attempt to reform the Tax Update Act, in which there are modifications to reduce and exempt from taxes as well as formal errors in the writing", reported

According to Deputy Carlos Barreda, in the changes to Article 21 of the Law on Income Tax there are privileges, as it aims to make a reduction to Income Tax (ISR by its initials in Spanish) according to total costs arising from the free services that companies give to employees, such as clinics, schools and homes. The current law only allows them to deduct 50% of those expenses. "

According to Barreda this reduction would cost the Treasury about $38 million. One of the sectors which would benefit the most is sugar mills as they provide these kind of free services.

More on this topic

Guatemala and the New Law on Banking Secrecy

April 2016

The tax authorities would be able to access taxpayers banking information through an order issued by a qualified judge.

The business sector has not opposed the proposal to remove bank secrecy, either in the past nor in the present, provided it is done through means of an order issued by a qualified judge and a substantiated request made by the tax authority.

Guatemala: Income Tax Lowered by 3%

January 2015

In order to encourage investment in the country, starting from this fiscal year income tax paid by taxpayers registered in the regime on profits will be reduced from 28% to 25%.

According to the latest amendment of the Law on Tax Update, Decree 10-2012, the rate of income tax (ISR) applied to taxpayers from 2015 will be 25%.

Guatemala: Entrepreneurs and Government Debate Tax Act

May 2013

Both sides are discussing three articles of the Tax Update Law, but so far have failed to reach an agreement.

According to Andres Castillo, president of the Chamber of Industry of Guatemala (CIG), one of the items that is causing disagreement is related to the payment of income tax (ISR) on the tips received by service companies.

New law in Guatemala to govern income tax, rates and controls

June 2008

The Executive Branch of government has proposed a lengthy new income tax law.

Under the proposal, the changes to the income tax structure would affect the general income tax, optional taxes and local taxes. It would create levies on dividends from capital and new limits on deductible expenses.