In order to reactivate the Panamanian economy that has been damaged by the outbreak of covid-19, the Ministry of Economy and Finance will present to the National Assembly a bill to extend the tax amnesty and approve new tax relief measures.
The Cabinet Council, led by President Laurentino Cortizo Cohen, authorized, today, the Minister of Economy and Finance, Hector Alexander to present to the National Assembly, the bill extending the tax amnesty, as well as new tax relief measures with a view to reactivate the national economy, explains an official document.
By submitting to the Costa Rican Legislative Assembly a new text of the dual global income bill, the Alvarado administration intends to guarantee the tax exemptions that companies operating in the free trade zone regime already benefit from.
The dual global income bill that was sent last January 22 to the Assembly created confusion among the deputies.
As of January 1, 2021, owners of homes whose construction value exceeds the equivalent of $217,000 will have to pay the tax known as the "luxury home" tax.
The modification of the minimum amount was communicated through the executive decree that was published on December 22 in the newspaper La Gaceta.
After inconsistencies were detected between purchases reported by taxpayers and sales that the company declared to the tax authority, an investigation was initiated in Guatemala into the "La Barata" supermarket chain.
During the morning of December 7, representatives of the Public Ministry (MP) and the Superintendence of Tax Administration (SAT), held a press conference in which they explained some details about a new case of alleged tax fraud by the chain of stores "La Barata."
The Legislative Assembly is preparing to consider, in the first debate, a bill aimed at exempting inactive companies from the obligation to file an income tax return.
The file of this legislative proposal is number 22,307 and was presented by Deputy Pablo Heriberto Abarca. The initiative will be discussed in the Assembly, despite the opposition of the Ministry of Finance.
After IC Power Asia Development sued the Guatemalan State for violating its rights under the Agreement for the Promotion and Reciprocal Protection of Investments, the Permanent Court of Arbitration ruled in favor of the Guatemalan government.
On February 20, 2018, the Israeli entity IC Power Asia Development LTD. (former owner of Energuate) sued the State of Guatemala as a result of an inspection carried out by the Superintendence of Tax Administration (SAT), to verify the liquidation of Income Tax (ISR), informed the Ministry of Economy (Mineco).
The Inter-American Development Bank approved a $40 million credit line that will help the country invest in the digital transformation of the tax administration.
The financial organization reported that the project is part of the efforts that the General Directorate of Revenues (DGI) has been taking since late 2019 to modernize its management in an integral manner, in coordination with the Inter-American Development Bank (IDB) and the International Monetary Fund.
After the announcement of the intention to increase the tax on the distribution of cement and fuel in Guatemala, businessmen believe that in this scenario of incipient economic recovery it is not a good idea to increase the tax burden.
In order to face the effects of the economic crisis generated by the covid-19 outbreak, Guatemalan authorities are already beginning to discuss the fiscal policy to be applied in 2021.
In Costa Rica, the Alvarado administration would be considering the creation of a tax on each transaction that a person or company makes through a financial entity, a tax that will discourage savings and motivate people to use cash.
In order to discuss a medium and long term credit with the International Monetary Fund, the Costa Rican authorities would be planning to design and create a new tax, which consists of each person paying a tax of ¢3 for every ¢1.000 in the transactions they make through a bank, finance company, mutual fund, stock exchange or any other financial entity.
In order to tax the total amount of profits of individuals or corporations based in Costa Rica, regardless of where their profits are generated, a bill was submitted to the Assembly that seeks to amend the Income Tax Law.
Currently in Costa Rica a territorial income system is applied, which consists of taxing profits produced exclusively at the local level.
Despite a severe economic crisis, Costa Rican authorities have approved the imposition of a 1% VAT on several foodstuffs in the basic food basket, and 4% on certain tourist activities and construction services.
Before the emergence of the pandemic, the Costa Rican economy was already in a difficult state, and the impact of the covid-19 outbreak ended up hitting it in the worst way, which is evident in the performance of productive activity.
In order to give individuals and corporations the opportunity to catch up with this obligation interrupted by the pandemic, authorities extended until July 17 the deadline for declaring income tax payments.
The term to cancel this commitment with the Panamanian State expired on March 31, 2020, and an extension was added until May 30, given the circumstances with the effects of covid-19, the difficulties presented by many companies and the time needed by public accountants to submit such statements, explained the representatives of the General Directorate of Revenue (DGI).
Guatemala's private sector filed a legal action against the Superintendence of Tax Administration, arguing that the entity had indicated that it would defer tax collection if the restrictions remained in place, but did not do so.
Companies that owe taxes to the Costa Rica Tourism Institute will be granted a moratorium during April, May, June and July.
Regarding the taxes to which the moratorium will apply, the Costa Rican Tourism Institute (ICT) reported they are 5% for the sale of each air ticket originating in Costa Rica for international travel, in addition to the 5% that applies to the purchase of tickets whose destination is our country. Also included is the $15 fee for the entry of each tourist by air.
Extension of deadlines for the payment of taxes and flexibility in the submission of income tax returns by natural and legal persons are some of the measures that the authorities will implement in the context of the Covid-19 crisis.
With no details on the new deadlines that will be required of taxpayers, the Ministry of Economy and Finance (MEF) reported that the measures are contained in Executive Decree 252 of March 24.
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