In the region the level of sales tax evasion is around 33% on average.
From a statement from the Central Institute for Fiscal Studies (Icefi):
The Central American Institute for Fiscal Studies presents the seventh edition of its analysis of the situation in Costa Rica.
Icefi: It is urgent that the two contending political parties specify a plan that will allow them to balance fiscal accounts and fulfill their campaign promises.
Tax revenues in relation to GDP increased in the Central American countries with the exceptions of Guatemala, where it fell, and Costa Rica, where it did not change.
A report entitled "Tax Statistics" prepared by the Organization for Economic Cooperation and Development (OECD), analyzes the behavior of tax collection in Latin America.
A law has been approved that repeals articles 2 and 3 of Act 120 of 2013 and restores the effect of Article 694 of the Tax Code relating to the principle of taxation of the income.
From a statement by the National Assembly:
With 45 votes in favor, 2 against and 0 abstentions, the plenary of the National Assembly approved on its third reading Bill 694, which repeals Articles 2 and 3 of Act 120 of 2013 and restores the effect of Article 694 of the Tax Code regarding the principle of taxation of income.
Central American companies on average spend 217 hours and perform 34 different procedures in order to comply with the payment of taxes.
Even though the process for paying taxes are slower than in other regions, the overall tax rate paid by corporations in Central America is still lower than in other countries.
This is indicated in an annual study by PriceWaterHouseCoopers and the World Bank, which analyzes tax systems in 189 countries and compares them according to three indicators: the time it takes to make the payments, the number of procedures that must be carried out and the overall tax rate, which takes into account labour taxes, those on profits and others.
The term of the decree allowing the border areas of Mexico to import goods at a significantly lower charge than in the rest of the country has been extended for three years.
According to the Mexican Finance Minister, Luis Videgaray, the decree was scheduled to end on Decemnber31 December, however, the term has been extended for another three years.
Another decision taken by the Mexican government is to close customs checkpoints on the border areas. "We will start gradually, but from today (Thursday) we are taking action to eliminate various Customs checkpoints located in states bordering the United States and Guatemala, though not exactly on the borders," said President Enrique Peña Nieto.
The technical redefinitions that make up a successful tax reform should be based on a reformulation of the social contract which establishes national goals.
Nacion.com reports that "According to Augusto de la Torre, Chief Economist at the World Bank, the fiscal debate is more than just an economic debate, it is almost a philosophical debate about the kind of state we want to have."
In contrast to what should be a regional customs union, every Central American border post charges vastly different rates and taxes.
"We believe that we could even stage regional custom blockades," said the Nicaraguan Marvin Altamirano, president of the American Federation of Chambers of Transportation (Fecatrans).
Central Freight carriers will meet next August to define the measures to be taken against the different fees imposed by various countries in the region.
The heavy bureaucracy present in Central American governments is obstructing the transport of goods, adding to regional trade costs.
In Guatemala, for example, the inefficiency in resolving issues and easily implementing procedures is self evident, as currently there are open files against 36,000 carriers, "something that no one can update, because of how cumbersome it would be to update this documentation , but the worst thing is that many of these records were wrongly documented because they correspond to breaches by vehicles which later went out of circulation ... " noted an editorial published by Prensalibre.com.
Regional freight transportation businessmen in Guatemala will meet to discuss abuses in fees and other procedures at several customs offices on the isthmus.
As reported by Benjamin Castro, president of the Chamber of Honduran Cargo Transporters, carriers also hope to meet with the Tax Authority (SAT), to discuss other problems they are experiencing in the country.
After the Salvadoran Supreme Court suspended the Fonat law, carriers decided to resume their work.
"There is no longer a reason for the strike," said Raul Alfaro, president of the Association of International Cargo Transporters (ASTIC).
"The Chamber accepted a constitutional challenge submitted by the ASTIC against the collection of accident insurance, namely the Fund for Victims of Traffic Accidents (Fonat), from which the Legislature excluded foreign transporters, but not Salvadorans," noted an article in Elsalvador.com.
The fulfillment of the obligation to report on foreign bank accounts belonging to U.S. citizens has been postponed to July 1, 2014.
This was announced by the U.S. Treasury through a statement, explaining that "due to the huge interest from countries around the world" the deadline to comply with the Law on Foreign Account Tax Compliance (FATCA), will be extend by six months, that is until July 1, 2014.
The Central Council of Transport has announced a three-day strike in protest against El Salvador levying a tax on freight carriers of between $35 and $250.
Laprensa.com.ni reports that "the measure will affect all regional trade, because the rest of the international freight carriers from the isthmus will join the strike 'in solidarity' in order to send a message to other governments who have created new taxes on trade merchandise ... ".
The FEDEPRICAP believes the new transport charges imposed by governments in the region will have a negative impact on competitiveness and development.
In a statement, members of the Federation of Private Entities in Central America, Panama and the Dominican Republic (FEDEPRICAP) said that Central American integration and the customs union "is not a specific goal, but a process of promoting the free movement of goods, trade facilitation, and the passage of people. "
The reform excludes from payment cargo carriers that already have private insurance coverage in place in Central America.
From a press release by the Legislative Assembly of El Salvador:
With 54 votes in plenary legislature, Section 20 of the Special Law for the Establishment of the Fund for the Care of Traffic Accident Victims (Fonat) was reformed to incorporate a clause that excludes payment of the special contribution by freight vehicles with foreign plates, for those who already have an insurance policy against accidents and / or damage to third parties, to ensure compensation both in terms of health as well as financially, with current coverage level in Central America, including El Salvador.
An agreement has been made to reform the law "Fondo de Atención para Víctimas de Accidentes de Tránsito" (Fund for Attention to Traffic Accident Victims) to exempt carriers carriers who already have private insurance from additional charges.
The agreement was reached in the Finance Committee of the Salvadoran Congress after the Salvadoran Association of International Freight Carriers (ASTIC by its initials in Spanish) threatened to paralyze the service at all of the country's border crossings, on 1 July.