Global Tax Alert (News from Americas Tax Center) | 15 January 2014

Guatemalan Congress approves amendments to tax laws

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On 20 December 2013, through a publication in the Official Gazette, Guatemala approved Decree No. 19-2013 (the Decree), which contains a series of amendments to the tax laws.

The Decree amends the provisions on infractions sanctioned with temporary closure and recovery of net and collectable debt receivables under Chapter I – Amendments to Tax Code, Decree No. 6-91. The Decree also modifies the following provisions of Chapter II – Amendments to Tax Law Update, Decree No. 10-2012:

  • Capital income and capital gains
  • Presumption of profit
  • Capital incomes excluded from tax base
  • Presumed income for professionals
  • Gross income
  • Deductible and non-deductible costs and expenses
  • Construction and similar activities, buy/sell real estate, land special treatment for common areas and services in real estate projects
  • Quarterly payments
  • Simplified regime over income, form of payment, obligation to withhold, monthly sworn statement
  • Capital income, capital gains and losses

Additionally, the decree modified the exempt acts and contracts provisions contained in Chapter III - Stamp Tax and Stamp Paper for Protocols Law, Decree No. 37-92. The decree made changes to Chapter IV - Final, transitional and repeal provisions.

According to Section 30 of the decree, its provisions are effective as of the day following its publication (i.e., 21 December 2013).

The Executive Branch shall amend the regulations to adjust them to the Decree´s provisions within 90 days following its effective date.

For additional information with respect to this Alert, please contact the following:

Ernst & Young, S.A., Guatemala City
  • Francisco Mejía
    +502 2386 2409
Ernst & Young, S.A., San José, Costa Rica
  • Alexandre Barbellion
    +506 2208 9800
  • Rafael Sayagues
    +506 2208 9880

EYG no. CM4104