A new billing system is in effect and all registered companies are required to provide receipts using the new documentation required by the Executive Directorate of Revenue.
Despite widespread opposition from the private sector, who assert that the payments of sales tax by companies who turnover at least $16,000 a year will have serious negative effects, the new billing system implemented by the Executive Directorate of Revenue (DEI) has come into effect.
The President of the IADB has advised Costa Rica to make a tax reform to raise taxes arguing that today the teetotum indicates "everyone gives".
EDITORIAL
The use of the old fashioned game of a faceted spinner by the head of the hemispheric institution as example, deserves to have the whole story told: the person who spun the teetotum was the Costa Rican government, the same participant of the "game" who on their previous turn benefited from the teetotum when it landed showing "TAKE ALL". Luis Alberto Moreno is saying that the serious fiscal crisis which the country now finds itself in means that now everyone must contribute to its solution. That means aproving more taxes.
The private sector has denounced that on top of the negative effect of the new tax of 1.5%, are delays in the payment of $19 million in tax refunds.
Added to this is the cost for companies of undergoing tax audits required by the Executive Directorate of Revenue (DEI) to justify their financial position and request an adjustment in the payment of 1.5% of income tax to be paid by those generating sales of over $456 thousand.
A grace period has been granted up until October 5, 2015, for filing in the tax return without penalties charged for delays.
From a statement issued by the Executive Directorate of Revenue (DEI):
Tegucigalpa, published on August 5 - Tax Amnesty for fines caused by non-submission of tax declaration.
Decree No. 66-2015, which extends the amnesty provided for in 140-2014, was recently approved, by which 60 calendar days are granted from the day following the publication in La Gaceta, in order for tax declarations to be settled without incurring penalties from the Executive Management and Revenue (DEI).
Very dark is the future of a country where the rulers do not lift their gaze beyond the few years of the mandate conferred on them by citizens.
EDITORIAL
The president of Costa Rica prefers short-term actions to address the fiscal crisis, while leaving open the tap of privileged public wages by which the future of the nation drowns through.
It is clear that immediate measures need to be taken such as reducing tax evasion and smuggling, and cutting abusive pensions. And it is quite possible that in order to maintain the rule of law taxes also need to be raised. But not closing, RIGHT NOW the growing cascade of state payroll costs that is multiplying every year, means mortgaging the future of the Costa Rican economy. However, president Solis postpones dealing with the topic, because its impact would be felt "only after 15 or 18 years."
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."
It has been announced that in August the regulations governing transfer pricing will take effect and penalties will be imposed of $10 thousand to $20 thousand on companies that do not submit a declaration.
Companies that do not submit a declaration after three months after the entry into force of the regulations are subject to fines ranging between $10 thousand and $20 thousand.
The Constitutional Court has rejected the constitutional challenge presented by the business sector and left in place the collection of 1.5% income tax.
The Supreme Court has confirmed the income tax of 1.5%, which applies to companies reporting net sales of over $456 000, leaving exempt from this charge those reporting lesser incomes and those with less than two years of being established.
The Executive Directorate of Revenue has announced that as part of the changes in the audit and tax collection it will oversee the transfer prices of companies headquartered abroad.
In addition to the implementation of electronic billing and other changes that aim to improve the supervision of tax collections, the Executive Directorate of Revenue (DEI) has announced that foreign companies or Honduran companies whose headquarters are outside of the country must report in detail their transfer prices.
From January to April 2015 2,785 new companies were registered in the Registry of Honduras , 47% more than recorded in the previous year.
The increase has been attributed to the new electronic billing system implemented by the Executive Department of Revenue (DEI), according to representatives from the Chamber of Commerce and Industry of Tegucigalpa (CCIT).
The problem with income tax exemptions is that they favor high-return projects that would probably have been made anyway.
From an IDB document entitled "The effectiveness of tax incentives: The case of export processing zones in Costa Rica, El Salvador and the Dominican Republic".
Introduction and Summary
Policies encouraging investment make use of a variety of instruments.
Radical changes will create five regimes: Social Protection Floor, Social Security Prevision, Insurance Health Care, Professional Risk Insurance and Labor Insurance Coverage .
An article on Latribuna.hn reports that "... The new legal framework will take effect in the next 45 days and will give rise to the approval of four special laws that will regulate the scope of these principles. "
The Honduran Congress has urged the tax authorities to postpone the implementation of the new billing system until January 1, 2016.
In response to pressure from the private sector, Congress passed a motion that the Executive Revenue postpone to January 2016 implementation of the new billing system.
The new system has been opposed by the business community in particular with regard to the obligations incurred by small and micro enterprises.
Exemption from taxes and municipal fees are some of the incentives that the Mayor of the Central District of Tegucigalpa is granting to those building parking lots in areas of high road traffic.
Other incentives being offered include the payment of only $0.05 per building permit, regardless of the size of the land where it the parking lot will be built.
The industrial sector has announced a request to amend Regulation of the Billing Act to raise from $16 thousand to $228 thousand the minimum annual basis required by companies to use the electronic system.
The National Association of Industrialists (ANDI) has also requested an extension of at least eight months, in the implementation of the new billing system.