Guatemala: Rules Established for Cement Tax

With the entry into force of 122-2019 Agreement, the application of the specific tax, the customs information corresponding to cement or clinker imports and the appointment of personnel to supervise storage places is regulated.

Friday, July 26, 2019

Since the 122-2019 Governmental Agreement was published in the Diario de Centro América on July 25, 2019, the regulations have become effective in the country. See full publication.

Article 1 of the Agreement explains that "... The purpose of this Regulation is to establish the application of the provisions of the Law of the Specific Tax on the Distribution of Cement, Decree number 79-2000 of the Congress of the Republic of Guatemala, and regarding the administrative collection of such tax, as well as the procedures to facilitate its collection and control."

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Article 6 stipulates that "... For purposes of control and inspection of the tax, pursuant to the provisions of Article 11 of the Law, the Tax Administration may designate competent employees in each of the storage places of cement and/or clinker manufacturers with the following functions:

a) To keep daily control of the volumes of cement withdrawn from the deposits or storage places of the manufacturers, packed in bags of forty-two point five (42.5) kilograms in weight or its equivalent when distributed in bulk;
(b) Keep a daily control of the volumes of clinker removed from manufacturers' warehouses or storage places;
c) Participate with the taxpayer in the taking of physical inventories by type of product in the deposits or storage places of the cement and/or clinker manufacturers;
d) Keep daily control of the volumes of cement brought into the country by importers on the date of its entry into the country by the corresponding customs; packed in bags of forty-two point five (42.5) kilograms in weight or its equivalent, when distributed in bulk

Abelardo Medina, senior economist at the Central American Institute of Fiscal Studies, said to that "... the implementation of the control system in the areas of production and in the warehouses of importers is positive for the control to be carried out by the fiscal entity."

According to reports from CentralAmericaData, in 2018 the main importer of hydraulic cements in Central America was Nicaragua, with $48 million, followed by Guatemala, with $44 million, El Salvador, with $25 million, Honduras, with $14 million, Panama, with $13 million and Costa Rica, with $10 million.

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More on this topic

Costa Rica: 5% Tax on Cement

February 2020

The Assembly approved in first debate a bill that seeks to tax the sale and self-consumption of cement that is imported or locally produced.

The initiative establishes that the tax will be on cement imported and produced nationally, in bags or in bulk, for sale or self-consumption, of any kind, whose destination is the consumption and marketing of the product at the national level, reported the Legislative Assembly.

Costa Rica: Tax on Cement

March 2018

A bill that is being discussed in the Legislative Assembly proposes establishing a tax of 5% on the net sale price of imported or locally produced cement.

The bill establishes that "... the tax on cement produced within the national territory or imported, will be of five percent (5%) on the net sale price, both in the case of the national producer at the level of the production plant and for the importer at the level of the dispatch or storage site, excluding the corresponding sales or value-added tax, as well as any other tax".

Panama: New Cement Additives Plant

April 2017

50% of production from the Cemex additive plant inaugurated in Panama will be destined for the local market, and the remaining 50% will be exported.

The cement company said that its objective is to supply the construction industry in Panama, in addition to exporting to Central America and the Caribbean, which is why it decided to settle in Panama Pacifico.

Tax on Cement in Guatemala Confirmed

January 2015

The Constitutional Court has ruled as unfounded the suits on unconstitutionality filed by cement companies and left in place a tax of $0.65 on the distribution of each sack of cement.

The Constitutional Court decided to maintain the tax of $0.65 per sack of cement as indicated by the reform approved for the Law of Specific Tax on the Distribution of Cement under the fiscal year 2015 of the National Budget.

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