In Guatemala were published in the Diario de Centroamerica the sanctions of the laws for the Simplification of Administrative Requirements and Procedures and Free Zones, regulatory frameworks that aim to encourage investments and job creation.
In the June 1, 2021 edition of the Diario de Centroamerica, the texts of Decree 5-2021, which corresponds to the Law for the Simplification of Administrative Requirements and Procedures, and Decree 6-2021, which refers to the Free Trade Zones Law, were included. See complete publication.
After the announcement of the Bill that creates the Program for the Modernization of the Logistics Services Infrastructure in the Colon Free Zone in Panama, local businessmen believe that more attractive incentives should be sought.
Last April 28, the Assembly reported that the Minister of Commerce and Industries, Ramon Martinez presented to the plenary of the Legislative Body the bill that creates the Program for the Modernization of the Infrastructure of Logistics Services in the Colon Free Zone (ZLC), and introduces amendments to Law 8 of April 4, 2016.
With the reform proposal to the Law of Free Zones presented to Congress, it is intended to reduce from 20 to 10 the requirements that must be met to approve a new free zone.
After several months of working on the proposal to make changes to the law, the file was submitted to the legislative chamber and prepared by the Honduran Maquiladora Association (AHM), the Ministry of Finance, the Central Bank of Honduras and the Ministry of Economic Development (SDE).
The business sector and executive authorities are working on a proposal for reforms to the Law of Free Zones of Puerto Cortés, a project that aims to expand existing incentives for this regime.
The modifications that will be discussed in next week's mobile congress in San Pedro Sula seek to reform decrees 1, 2, 3, 12, 16 and 22 of the Free Zone Law of Puerto Cortés.
In El Salvador, it is proposed that the law discussed in the Assembly, considers the reduction of minimum requirements for investments made in special economic zones, to compensate for the disadvantages of lack of productive activity in the area.
In July 2018, the Executive Branch presented to the Legislative Assembly the draft Law on Special Economic Zones (LZEE), which is being analyzed by the Economy Commission.
Two years after having been presented at the Guatemalan Congress, the initiative to reform the Free Zones Law is still awaiting approval.
In 2016, initiative 5174 was presented to the Congress of the Republic, and has been debated in speeches made by deputies and in meetings of the Economic Cabinet of the Executive Power, none of which have resulted in its approval.
A modification has been made to the law to equalize the incentives received by the free zones that operate in Grecia, Valverde Vega, Naranjo, Palmares and San Ramón, with those outside of the Greater Metropolitan Area.
From a PAC Party bulletin:
April 3, 2018.The Legislative Assembly approved, in a second debate, the project to improve the conditions for the installation of free zones in the West Region of Alajuela (File No. 20,464).
In Guatemala, reform of the Free Zones Law has been in place for two years, and as a result, several companies have withdrawn, while others are still waiting for the tax benefits to be restored before making any more investments.
Some companies are keeping their investments on hold, because the tax benefits applied to activities that take place in free zones were eliminated withDecree 19-2016.One such case is that of electric vehicle importer Electricmóvil. This companyis waiting for Congress to reform the Law and restore the benefits, before expanding its operations under this regime.
The ICEFI states that the proposed reforms to the Free Zones Law in Guatemala encourage a public investment model based on tax privileges for specific groups of companies.
The Central American Institute of Fiscal Studies (Icefi) reiterates its arguments against continuing an obsolete and ineffective model of attracting public investment based on tax privileges for specific groups of companies and encourages the initiation of the discussion on a general investment law. For this reason, it does not recommend to the Congress of the Republic the approval of the reforms to the Law on Free Zones contained in the legal initiative with the registry number 5174.
With the modification of the Free Zones Law, it will now be possible to accumulate up to 25 samples which do not have a commercial value in a single declaration.
Jaime Campos, executive director of the Regulatory Improvement Organization, told Elmundo.sv that the reform "...'will help the investment climate in the country' because the reform introduces the concept of the 'accumulated goods declaration', which will allow imports or exports of up to 25 samples in a single declaration."
In Costa Rica an amendment to the regulations of the Free Trade Zone Law is under public consultation until November 25.
From a statement issued by PROCOMER:
In accordance with the provisions of articles 361 et seq. of the General Law of Public Administration, Law No. 6227 of May 2, 1978, in accordance with article 174 of the Code of Tax Rules and Procedures, Law No.
A simpler scheme for importing materials is one of the new features included in the new regulations announced to facilitate procedures for free zone companies.
The leaders of the Superior Council of Private Enterprise (COSEP) announced that the new technical circular for free zone companies will be in effect from February 1, and includes, among other things, adjustments to the time and costs incurred by companies when transporting goods.
The formal closure of 15 companies in free zones has been reported from October 2015 to date and sixty other users have already suspended their operations.
The problems facing the free zone regime have not stopped increasing since the Emergent Law for the Conservation of Employment came into force, which eliminates tax exemptions which used to benefit companies operating under the free zone regime.
Free zone companies denounce lack of legal certainty in the implementation of a new law (Ley Emergente de Empleo), which established a list of activities and goods that they can no longer make or sell.
The Association of Free Zones of Guatemala expects jobs and foreign investment to be lost if there are no modifications to the Agreement 65-89 "Ley Emergente de Conservación de Empleo", a law which came into effect in March.
The business sector is demanding that the government take action to minimize the impact of the expiry at the end of the year of tax incentives granted to foreign firms in free zones.
About 1,300 companies enjoy the benefits granted by the World Trade Organization, which expire on December 31 this year. Two companies have already moved their operations to other countries, according to the Ministry of Economy of Guatemala.