While the Northern Triangle countries strive to reduce or at least maintain constant levels of debt / GDP, Costa Rica and Panama move further away from fiscal discipline, the former at the greatest pace.
From the introduction of a report entitled "Macrofiscal Profiles : 4th Edition." by the Central American Institute for Fiscal Studies (Icefi):
In the area of prioritizing economic stability over the availability of resources to finance development, the countries of the northern triangle in Central America, have generally shown a significant effort to reduce or at least maintain constant levels are Debt / GDP and the fiscal deficit, which means that, tacitly, the fiscal rule of zero growth of public debt is being used, despite the impact this may have on the welfare of the people.
Since the institutional crisis the tax supervision body has been operating without a head since April, while the fiscal deficit is still growing and legal bills sleep in the Assembly.
In an opinion piece published on Prensalibre.com, Oscar Chile Monroy, refers to the need for the new president Alejandro Maldonado to urgently decide on who are the new authorities for the Tax Administration in order to redirect the state of public finances, after the institutional crisis whose effects are still being felt in the tax collection agency.
As the region gets ready to start complying with the US law FATCA, OECD countries are already working on a Single Global Standard for automatic exchange of information.
FATCA could now be joined by the European OECD countries Single Global Standard for Automatic Clearing of CRS Information (Gatca), "... allowing tax information on their residents to be shared between them."
A report from the Central Institute for Fiscal Studies said that mining activities in Guatemala are "far from presenting satisfactory levels of transparency."
From a report issued by the Central Institute for Fiscal Studies:
Fiscal transparency is a key element to ensure that tax revenues from the extractive industries translate into improvements in the quality of life of the population.
The Tax Authority has announced the implementation of its program of massive audits of firms for March and April.
From a statement issued by the Superintendency of Tax Administration (SAT):
The Tax Authority within its functions to monitor compliance with tax obligations and billing for services and sale of products, is now conducting checks on billing and fixed points at different types of existing businesses.
The Tax Authority announced special audits in companies with "related parties abroad", which can be avoided by presenting an Agreement on Advance Pricing.
This year nine audits are being carried out with the objective of corroborating "... suspicions raised when key rights or trade credits have been created." According to a study conducted by risk teams to implement transfer pricing, coffee, bananas, sugar, fuels and metals sectors are reporting increased risk in their transactions.
Many of the officials working in Central American governments are annoyed at the idea of the information they handle being accessible to citizens, and one way or another, they are impeding its availability.
EDITORIAL
"- Send a letter to Mrs Fulana, the person in charge of authorizing the release of information you have requested, stating the reasons for your request".
With entry into force once again of the rule on transfer pricing, companies must take into account all the requirements in order to avoid penalties and adjustments to income.
The regulations in force since January 1 require taxpayers to adequately demonstrate and justify "... the amounts of payments and / or profit margins in their transactions with related parties" in order to ensure fair competition and collection of taxes.
Memorandum on the Annual Tax Affidavit of Compliance with Labor Obligations, which must be filed no later than January 20.
Tax Memorandum by Tezó and Associates:
Edition 3 January 15th, 2014
Annual Affidavit Compliance with Labor Obligations
Tuesday January 20 is the deadline for presentation of the Annual Affidavit of Compliance with Labor Obligations established by Article 23b of the Rules of the Law on the Promotion and Development of Export and Maquila Activity, a rule which is effective from 26 June 2013.
In order to encourage investment in the country, starting from this fiscal year income tax paid by taxpayers registered in the regime on profits will be reduced from 28% to 25%.
According to the latest amendment of the Law on Tax Update, Decree 10-2012, the rate of income tax (ISR) applied to taxpayers from 2015 will be 25%. The authorities clarified that the rate of 28% will be applied to taxpayers who have not yet completed the liquidation of 2014
The new head of the Superintendency of Banks intends to resume the discussion in Congress of a bill which would regulate banking secrecy in the country by way of tax audits.
With the aim of improving tax controls, the Superintendency of Banks (SIB) seeks to reform national legislation for the regulation of banking secrecy in order to access "... Banking information of taxpayers, under guarantees of confidentiality."
Instead of contracting international consulting company through a tender it has been proposed that the SAT should turn to the Inter-American Center of Tax Administrations and other lower-cost options.
Experts on tax matters in Guatemala are looking for alternatives to the government's proposal to hold an international competition for services for fiscal management, with one of the first suggestions being, "...
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.
Port authorities have to provide information to the Superintendency of Tax Administration regarding the goods and containers in their custody.
The Superintendency of Tax Administration (SAT ) of Guatemala has issued a number of provisions establishing the data that must be provided - and kept up to date - by electronic transmission.
"Reports on goods included in import operations must detail the vessel name and voyage number, carrier name, date of discharge or receipt into temporary storage, container number, number of the form for temporary admission of loading equipment, name of consignee, description of goods, and total weight of cargo, among other data. "
The tax burden was placed at 10.9%, as a result of a tax proceeds of $5.912 million, 8.1% higher than in 2012.
Guatemala's fiscal deficit ended the year at 2.2%, below the Government's initial estimate of 2.5 %.
From a press release by the Ministry of Finance:
The Ministry of Finance reports that at the close of the fiscal accounts for 2013 has been completed and given results that demonstrate the efficient and sound management of fiscal policy. The deficit stood at 2.2% of GDP, a level that fosters macroeconomic stability and economic development. The delay in approving budget support loans and behavior of tax revenues represented adversities which were properly dealt with.