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).
In Panama, a proposal is being discussed that seeks to increase from 5% to 8% the Selective Consumption Tax on soft drinks, carbonated beverages, processed juices and other sugary beverages.
Laestrella.com.pa reports that "... The vice president of Corporate Affairs of the National Brewery, and representative of the Industrial Union of Panama (SIP), Juan Antonio Fabrega, warned last Tuesday that jobs generated by the industry of sugary beverages could be reduced, if the Selective Excise Tax is increased from 5 to 8%, as established by Law 570, which will be discussed today in the first debate in the Economy and Finance Commission of the National Assembly."
Entrepreneurs in Costa Rica are warning of the negative impact of not maintaining, in the new law of public finances, the VAT exemption on local purchases of goods and services carried out by free zone companies.
The Association of Free Trade Zone Companies of Costa Rica (Azofras) points out that in the bill to strengthen public finances that is being discussed in the Assembly, motion 302 was not revised, a motion which aims to keep the VAT exemption on the local purchases of goods and services carried out by free zone companies, both to be incorporated into export products and for their operations.Currently the sales tax exemption applies.
A bill that is being discussed in the Legislative Assembly proposes establishing a tax of 5% on the net sale price of imported or locally produced cement.
The bill establishes that "...the tax on cement produced within the national territory or imported, will be of five percent (5%) on the net sale price, both in the case of the national producer at the level of the production plantand for the importer at the level of the dispatch or storage site, excluding the corresponding sales or value-added tax, as well as any other tax".
In Costa Rica, the new proposal from the Solis administration's imposes tax on a greater amount of goods and services, such as air tickets, books, packaging and bottling, but with differentiated rates.
As the government's initial idea to convert the sales tax into a value-added tax and raise it from 13% to 15% did not prosper, the Ministry of Finance decided to expand the range of goods and services to be taxed, in order to compensate part of the funds that could not be raised from raising the rate from 13% to 15%.
A bill being prepared by the hotel union would force platforms such as Airbnb to pay 13% sales tax and an additional 5% for national parks.
The bill is being drafted by the National Chamber of Tourism, which intends to submit it to the Legislative Assembly.If passed, this law would take effect for all platforms used for renting accommodation for tourism purposes, such as Airbnb, Homeaway and others.
A resolution by the tax authorities establishes that withholding of sales tax will from now on be done by the card issuer, and not the trader.
The business sector has stated that this was not what was decided together with President Hernandez when the scope and characteristics of the new Tax Code were defined and is asking for the resolution by the SAR to be declared invalid and for retention to once again be made by traders.
Protests have been made in Costa Rica over the Treasury's intention to charge sales tax on services provided in recreation centers, contravening a ruling made by the Administrative Court in 2015.
The National Chamber of Tourism said that three companies in La Fortuna de San Carlos received notification from the Directorate General of Taxation which indicated that they were required to pay sales tax of 13% on recreational services offered to tourists.
The new law against tax fraud obliges anyone renting houses and flats for less than 30 days to register and pay sales and income taxes.
Services of renting houses, apartments and condominiums for periods less of than one month must pay sales and income taxes, and those who carry out such activities must register as taxpayers of the two taxes, in order to not be subject to fines.
The bill against tax fraud authorizes the Ministry of Finance to return up to 1% of sales tax paid by final consumers.
The return of that percentage, which would be a maximum of 1% of the general sales tax, would be subject to ranges and types of trading activity, as explained in the Bill to improve the fight against tax fraud.
The food industry is opposed to the executive decree which eliminates the exemption from payment of sales tax on some food products.
From a statement issued by the Costa Rican Chamber of Food Industry (CACIA):
The CACIA sent a note to the Finance Minister protesting against the publication in July this year, of Executive Decree 39732-H, which introduces changes to the regulations to the law on sales tax.It eliminates the definition of "canned" or "packaged" food which in the previous Decree referred to products which were canned or packaged in glass products.This change can affect exemptions applied to some products such as cheese, coffee, sausages, some seafood and corn.
A bill originating from the executive branch proposes stimulating the purchase of equipment and agricultural materials by reducing sales tax from 15% to 3%.
The bill on Agrifood submitted to Congress proposes a series of measures to stimulate the agricultural sector, including a reduction from 15% to 3% in the sales tax on the purchase of machinery and other materials.
Preparations are being made for a billing system which will allow companies to file reports digitally and in real time, replacing the tax printers implemented by the Martinelli administration.
The DGI has announced to the private sector that the new system is intended to streamline sales reports to the Treasury by large enterprises, in addition to ending the "... complications caused by use of fiscal printers".
A bill has been presented to eliminate sales tax (13%) on internet access services in all its forms, including broadband and via mobile.
An article on Prensalibre.cr reviews the initiative presented by the Libertarian Movement Party which "... seeks to authentically interpret subsection g) of article 1 of Law No. 6826, Law on General Sales Tax, and provide legal certainty in implementing this policy, in the sense that the term "similar" for the purposes of the Act and its regulations, will not cover internet services in all its forms, including those provided through broadband and mobile technology.
A ruling by the Administrative Court prevents the Treasury from levying sales tax on tourism activities carried out in protected areas.
Activities such as rafting and canopy tours carried out in protected areas remain off the list of taxable activities for sales tax, according to a ruling by the Administrative Court, in response to a lawsuit filed by the National Chamber of Tourism in 2014.
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