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Big Changes Coming to Guatemala Tax Laws

Article Summary:

The Guatemalan government’s tax reform law is ready, and contains several new points: employees ability to deduct VAT from annual purchases from their taxes has been eliminated, the tax base has been increased, and the road tax for vehicles has been doubled.

Photo Credit: Prensa Libre

Original Article Text From Prensa Libre via Google Translate :

Government Will Remove VAT Return

Completed and released yesterday from today, the initiative provides that those with income of Q5 thousand or less do not pay income tax, Pavel said Centeno, Minister of Finance, via telephone, after the Economic Cabinet meeting held yesterday.

With this package, this year aims to raise between Q1 and Q1 billion 200 million 400 thousand million.

Also be removed from the payroll tax 2013 and with it the option for workers as employees to deduct up to one hundred percent of ISR.

“Whoever wins Q44 Q6 thousand per month will pay income tax, and so on, and who earns more than a thousand Q12 Q100 and Q120 will pay between a month this is extended to the base without affecting those who have less income,” said Centeno.

The rates for the general scheme will be 6% next year and 7% in 2014, in the regime will fall 31% to 28% in 2013 and 25% in 2014, but anticipates a tightening in the criteria for companies to make income tax deductions as expenses.

He indicated that he will strengthen the Tax Authority to exercise greater control over the delivery of bills and there will be new mechanisms to prevent abuses by those who are exempt from that tax, such as educational institutions, churches and missions, among others.

Other measures
Capital income is now paid through tax stamps will be removed and establish a tax of 5%, explained the minister.

From the second sale of houses and not pay the 12% VAT, but 3% in rings.

It is also anticipated to double the tax for vehicles.

“60% of the country’s vehicle fleet pays tribute to Q110 of the year will now be Q220, and this is progressive because it increases with the cylinder capacity and the newest, most expensive cars pay more,” he said.

The proposal has a transparency component, with the approval of a law against illicit enrichment, tougher rules on probity Act and amendments to the Law of the Comptroller General of Accounts and Budget.

Also be improved customs controls and free trade zones, and call upon Congress to include in that package two anti-evasion law, which is vital for the program, Centeno said.

Link to Original Article:

From Prensa Libre

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