The Legislative Assembly of El Salvador has approved extending for 60 days the suspension of payment of the fee for inspecting goods at customs using scanners.
According to the approval measure given by the Assembly, the extension of the suspension of the collection will be until mid-September and will apply to both domestic and foreign cargo, regardless of whether the destination of the goods is within or outside of Salvadoran territory.
The private sector has filed a constitutional complaint against Article 22-A of the Tax Act on income tax arguing that it distorts fundamental tax principles.
From a statement issued by the Honduran Council of Private Enterprise:
As entrepreneurs we have supported the planning processes of public finances to improve tax revenues and the controlling of public expenditure, which allow for the signing an agreement with the International Monetary Fund (IMF). Tax burdens should be clear and simple, non-discriminatory, fair and universal, as established by our constitutional system.
1.5% of total gross sales must be paid even if the company does not generate profits.
As provided for in Article 22-A of the Act on Public Finance Planning "... all companies with earnings of 10 million Lempiras ($480,000) per year must pay 1.5 on their gross sales even if they have had losses."
The business association opposes this tribute "... it affects the economics of their business because gross sales do not determine profits of the business "... and they are considering taking legal action against the provision.
Business leaders say that amnesties on tax debts are an unjust punishment for companies that meet their tax obligations on time.
Private enterprises have criticized the inconsistency of state powers who on the one hand are seeking to increase revenue and on the other, reward and promote the culture of "no pay", stating that tax amnesties do not benefit the country.
The asymmetry of investment flows makes the application of the concept of world income inevitably generates more revenue to the states of powerful economies than those of small ones.
In his opinion piece in Elfinancierocr.com, Manrique Blen points to the difficulties that countries with small economies face when they sign double taxation treaties, as, depending on the characteristics of the signed agreements, they can stop receiving tax revenues that they could have received had they not joined the treaty.
Printing of various tax documents must be done using printers previously authorized by the Executive Directorate of Revenue.
Raising revenue, regulating printing documents and reducing tax evasion, is the aim of the Directorate of Revenue (DEI) with the implementation of a new system for authorization of printing tax registration documents directed at the 400 print shops that registered in the census in 2013, who design and print invoices, receipts, bills of exchange and checks.
All of the OECD countries and others such as Costa Rica have agreed to the automatic exchange of tax information.
From a statement issued by the Organization for Economic Cooperation and Development (OECD ):
Paris, May 6, 2014
Bank secrecy for tax purposes is coming to an end because countries, along with major financial centers have committed to the automatic exchange of information between jurisdictions.
Exporters warn that the proposal to retain $5 for every three or four pounds of exportable quintal will reduce competitiveness and encourage smuggling.
The bill introduced in Congress days ago cites the retention of $5 for every three or four pounds of exportable quintal in order to constitute a fund to support coffee growers affected by rust. Exporters believe that this measure will only encourage more smuggling and reduce the product's competitiveness internationally.
An announcement has been made that greater control will be exerted in verifying payments of income taxes by large taxpayers.
Due to the decline in revenue from income tax and irregularities in the internal collection agency, the Directorate of Revenue has announced it will increase controls on businesses.
In an article on Latribuna.hn Miriam Guzman, head of the institution, "emphasized that the auditing by the DEI, will not decrease, while at the same time business owners are being invited to "avoid having to be objects in criminal prosecutions led by the relevant authorities."
Regional agreements establish reciprocal and non-discriminatory treatment for international land freight transport services between Central American countries.
An article in Elperiodico.com.gt reports that "...The deputy ministers of Foreign Trade of Central America agreed yesterday that Guatemala would send a complete analysis, which demonstrates that the charge of $18 being made in El Salvador for carrying out non intrusive revisions contravenes trade regulations and affects the region. "
Movements in the bank accounts of U.S. citizens residing in Honduras will be reported to the Treasury Department of the United States.
The Law on Foreign Account Tax Compliance (FATCA) is a U.S. law that requires citizens of that country, including those living abroad to provide information regarding money held in bank accounts outside the United States by requiring foreign financial institutions to report to the Internal Revenue Service (IRS) about their U.S. customers. The U.S. Congress enacted this law to make it harder for U.S. taxpayers to hide assets and shell companies held abroad, in order to prevent tax evasion.
The competitiveness of a company and its product does NOT depend only on taxes but also on the cost of materials, labor and energy, and quality of its management.
Editorial
In an analysis of the issue Reny Marianne Bake notes that "... in the seventies and eighties of the last century ... as good merchants, American car producers and labor unions lobbied their politicians, seeking state protection, not wanting to compete.
The process of fixing prices, the tax structure and lack of investment in distribution are hindering the development of a market with great potential.
From a report by the Department of Agriculture of the United States:
Guatemala is the strongest potential biofuels producer in Central America given the high yields of sugarcane and palm oil and its efficient local industries.
The new administration of President Juan Orlando Hernández is crushing the electricity market and analyzing removing tax exemptions from the renewable energy market.
After the u-turn made by the Government in its relations with thermal power generators, the Negotiating Committee on Energy has now announced a review of tax incentives for renewable energy.
The new president Juan Orlando Hernandez has ordered the full and immediate intervention of the customs system, by the National Anti-Evasion Force and Revenue Office.
The President of the country, with support from the Defense and Security Council, has ordered the intervention of 17 customs offices in the country in order to reduce smuggling and increase tax revenues. At three of them intervention is already underway.