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Supplementary declaration, a requirement for the completion of exportation in Guatemala

By: David Erales As a general premise, exports of merchandise are exempt from Value Added Tax, which means that the tax generated by such sales abroad does not trigger the tax obligation to pay the tax. Article 2 of the Value Added Tax Law (VAT), paragraph 4, defines exports of goods as: “4) Export of…

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Withholdings applicable to non-resident entities in El Salvador

By: Carlos Pineda The diversification of trade and its globalization has given rise to the fact that many companies provide their services from their country of origin, but the recipient of such services is located in a different location. This practice is quite common, even in El Salvador, and payments made to these suppliers must…

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Aspects of the auditing process in Honduras

By: Aida Sierra The Revenue Administration Service (SAR), has within its attributions to carry out procedures of Determination to the taxpayer that consist of verifying the existence of a generating fact or the information presented by the taxpayer in its declarations. These procedures may be integral or partial, the ex officio determinations are also called…

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Proper application of income tax in the sale of real estate in Nicaragua Part I

By: Carlos Taboada The purchase and sale of real estate is a common and regular transaction in most countries that recognize private property rights. In this transaction, the seller may generate a capital gain or loss, depending on the difference between the selling price and the acquisition cost. The Tax Concertation Law (“LCT”), in its…

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Collective management entities in El Salvador

By: Suzanne de Tablas Collective Management Societies represent an effective tool for protecting authors and other holders of intellectual property rights. Through Collective Management, authors seek to receive economic compensation for the use and enjoyment of their works. The first Collective Management Society was created in France in 1850. Collective management represents an option within…