Guatemala: Textiles have their Tax Exemption Canceled

The Economy Ministry canceled tax breaks to SPD and Sae Hyun due to labor law violations.

Monday, March 14, 2011

The Ministry canceled the benefits conferred by Decree Law 29-89 to both companies after receiving a complaint from the Ministry of Labor.

Resolutions (117-2011 and 118 - 2011) "... are the first to be executed due to lack of compliance with labor laws, but do not prevent companies to reapply and qualify to operate under special arrangements again," stated to, Abel Cruz, Deputy Minister of Economy.

More on this topic

Guatemala: Tax Exemptions for Textile Companies and Call Centers

February 2016

The legislature has finally passed the Employment Act granting exemptions for 10 years for call centers and maquilas operating in the country.

From a statement issued by the Congress of Guatemala:

With 113 votes in favor, members of the National Emergency Congress approved Decree 19-2016, Emerging Act for the Conservation of Employment, which exempts import tax for 10 years for call centers and maquilas operating in the country .

Cemex Appeals Ruling Over Non-Payment of Municipal Tax

July 2013

Court cases arising from from tax exemptions granted by central governments but which go against municipal regulations are common in the region. reports that "Although the government of Costa Rica has ordered the cancellation the operations of a quarry belonging to the Costa Rican subsidiary of the transnational company Cementos Mexicanos (Cemex) in the northwestern town of Abangares, over a debt of some 7 million dollars in tax payments, the company announced yesterday that it will appeal the decision because it "unjustifiably harms" operations in this country. The resolution was issued on Friday by the General Office of Geology and Mines at the Ministry of Environment and Energy (Minaet ) of Costa Rica. Cemex has three days to appeal because the order is for the Abangares police to prevent exploitation at the quarry. "

Tax Exemptions in Guatemala

July 2012

Making the distinction between the classifications of exemptions is necessary because associations, foundations and other entities are required to be fiscally solvent in order to keep their status as an exempt entity.

From an Article by Oscar Chile Monroy:

There are several classifications for tax exemptions.

Guatemala Analyzes Reform to Labor Code

March 2011

In consideration to an announcement made by the U.S. regarding the possibility of a labor lawsuit against the country, the Government is currently discussing reforms to the labor code.

The reforms to the Code and to the Law on Promotion of Export Activity and Textiles, seeks to empower the Ministry of Work to be able to impose sanctions and require companies to make a deposit in order to cover severance and other social benefits.

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