The Superintendent of Tax Administration has contradicted the announcement made by the finance minister and ruled out a possible tax amnesty in the short term.
The highest tax authorities in Guatemala are contradicting each other. Although the minister of Finance, Julio Héctor Estrada, announced a possible tax amnesty for the second half of this year, Juan Francisco Solórzano Foppa, head of the Tax Authority (SAT) said in remarks published by Elperiodico.com.gt that "there will not be a tax amnesty".
The business sector is opposed the bill with which aims to increase the tax applicable to dividends, earnings and profits from 5% to 6%.
There's a proposal in Congress to increase the income tax (ISR) paid on dividends, profits and earnings by 1%. The intention is to allocate those funds to the creation of a Ministry for Youth.
"... The tax changes should be subject to prior consultation with the Ministry of Finance and analysis carried out to determine the impact on the business sector. When it was raised to 5% there was an explanation. It does not seem fair to us that reforms be made casuistically without consultation and with a specific assignment made," said Julio Héctor Estrada, Minister of Finance to Elperiodico.com.gt regarding the tax change which would mean revenues to the treasury of up to $10 million, according the legislators who proposed it.
The plan will enable the state to invest more resources in infrastructure, security, human capital and innovation.
The strategy presented by the Guatemala's "National Competitiveness Program" (Pronacom), suggests modifying the country's tax on income (ISR in Spanish) so that more individuals are eligible, as well as bring into force the so-called anti-evasion law (currently in congress).