Guatemala aims to tighten up on taxes

Guatemala's proposed new tax regime will put pressure on companies to keep much stricter accounts.

Friday, July 18, 2008

Companies that pay 31 percent of net profits (the proposal describes this as the "profits from lucrative activities regime") could face serious problems if they incur in shoddy book-keeping.
Expenses will no longer be deductible if they are simply described as "other", "miscellaneous" or "general". Invoices and contracts will be required as proof of expenditure, and workers' social security payments will have to be kept up to date.

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