Standardizing procedures and applying administrative silence in favor of the taxpayer, are some of the proposals that Congress has received for reforming the current regulations.
Due to the widespread delay in the tax refunds which is still harming the majority of the companies in the country, the Central American Institute of Fiscal Studies (Icefi), the Center for National Economic Research (Cien) and the Association of Exporters (Agexport), delivered to the Economic Commission at the Guatemalan Congress, a proposal to modify the regulations that are currently applied.
Raising VAT from 12% to 15% and lowering income tax from 35% to 30% are part of the reforms that the Executive Branch is preparing to present to Congress.
Preliminary ideas being prepared by President Morales and a group of advisers also include incorporating the concept of world income.Although a formal document has not yet been submitted, the Executive has already started to give details of the proposal to members of Congress.
A study reveals the state's inability to meet the demands for services and road infrastructure that arise when a mining project is set up.
"Mining in Guatemala's economy in 2011 accounted for 2.8% of the production of goods and services nationwide .... By 2012, the total tax contribution of the mining sector was $62,496,766 equivalent to 5.7% of production of mining and quarrying," indicated the Central American Institute for Fiscal Studies (ICEFI).
A new approved law aims to regulate transfer pricing, but detailed rules are still missing.
S21.com.gt reports that "In Guatemala the regulation of the transfer pricing has been approved as part of the tax update package, according 10-2012, to try to prevent related companies (parent and subsidiaries, for example) from manipulating prices when exchanging goods or services, so that they increase their costs or deductions in order to reduce taxes. "
Central American countries alleviated much of the effects of the global crisis by issuing public debt; they now face the challenge of keeping it at reasonable levels.
Capitales.com analyzed the relation between debt and GDP for each country in Central America. They noted that although Costa Rica, Guatemala and Honduras are within acceptable levels, they are dangerously close to surpassing them.