Modifications and additions to resolution DGT-R-46-2014 in Costa Rica
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Modifications and additions to resolution DGT-R-46-2014 in Costa Rica

Mandatory requirement for National Large Taxpayers to submit audited financial statements. With the publication in the official newspaper La Gaceta of resolution MH-DGT-RES-0002-2024 on February 15, 2024, modifications and additions were made to resolution DGT-R-46-2014, linked to the mandatory requirement for National Large Taxpayers to submit audited financial statements. Resolution MH-DGT-RES-0002-2024 amends articles 1, 4,…

Fiscal impact of the frozen exchange rate of the cordoba against the US dollar
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Fiscal impact of the frozen exchange rate of the cordoba against the US dollar

The Central Bank of Nicaragua (BCN) is the entity responsible for determining and executing monetary and exchange rate policy in coordination with the government’s economic policy, under Law No. 732 “Organic Law of the Central Bank of Nicaragua.” In this sense, the BCN sets the annual exchange rate policy and determines the official exchange rate…

Extension of deadline for the importation of used vehicles in El Salvador
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Extension of deadline for the importation of used vehicles in El Salvador

Recently, the General Directorate of Customs (DGA), under the provisions of art 440 of the Regulation of the Uniform Central American Customs Code (RECAUCA), has modified the period of stay for vehicles owned by foreign tourists, Salvadorans residing abroad, and Salvadoran students residing abroad. Until January 15, 2024, all foreign tourists, Salvadorans residing abroad, and…

The Mysterious World of VAT Tax Credit in Guatemala
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The Mysterious World of VAT Tax Credit in Guatemala

Today, on our journey to better understand VAT, we will delve into the exciting and mysterious world of VAT tax credit. In VAT, the problem – as a philosophical exploration – lies in the mystery of the tax credit. But what is this? While the term is commonly used, sometimes, just sometimes, it seems as…

Tax Trends in Central America 2023
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Tax Trends in Central America 2023

The Central American region has been characterized by a very dynamic economic, political, and social development, which has permeated the design of fiscal policies in each country. Under this reality, the tax component is consolidated as one of the most important elements of analysis for those who do business in the region, given the development…

The electronic submission of documents for the qualification process of institutions domiciled abroad has been enabled
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The electronic submission of documents for the qualification process of institutions domiciled abroad has been enabled

This year saw the enforcement of modifications to the Instruction for qualifying institutions domiciled abroad, within the framework of the Income Tax Law, the Law on the Tax on the Transfer of Movable Property and the Provision of Services, and the Tax Code. This instruction is jointly developed and reviewed by the Central Reserve Bank…

Constitutional interpretation in Guatemala
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Constitutional interpretation in Guatemala

As we have mentioned in previous articles, the constitution establishes certain principles in tax matters. We bring up this topic from the videos about the neutrality of VAT because it is important to see how the constitution aligns with the regulation we will analyze later. In Guatemala, art. 239 of the Constitution orders that it…

The appeal resource in tax matters in El Salvador
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The appeal resource in tax matters in El Salvador

The Salvadoran Tax Code, in its art. 188, stipulates that, regarding resources, one must adhere to the provisions of the Law on the Organization and Functioning of the Internal Revenue and Customs Appeals Tribunal. Being competent to hear the appeals filed by taxpayers before the Internal Revenue and Customs Appeals Tribunal (TAIIA), concerning administrative acts…

The mechanism of neutral VAT in Guatemala
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The mechanism of neutral VAT in Guatemala

Continuing with the VAT neutrality topic. To define the concept in this series of articles, it must be clarified that “The principle of tax neutrality is equivalent to the absence of adverse economic effects derived from taxation; the analysis of this principle of external neutrality concerning VAT is carried out in greater depth” (Tax Neutrality)….

Tax-Benefit Regimes in Costa Rica
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Tax-Benefit Regimes in Costa Rica

The current Law of the Free Trade Zone Regime in Costa Rica was established in 1990 with the primary goal of attracting foreign investment for job creation. There are approximately 500 beneficiary companies under this law, contributing a substantial 15.2% to the GDP, as per studies by the Foreign Trade Promotion Office (PROCOMER). This translates…

Capital gains tax technique. General rule in Nicaragua
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Capital gains tax technique. General rule in Nicaragua

In this article, we will review the general provisions regarding the technique for the determination of Income Tax (IR) on capital gains and losses in accordance with the Tax Agreement Law (“LCT“) and its Regulations (“RLCT“), applicable to taxpayers not exempted by Art. 77 LCT, with respect to non-exempt income established in Art. 79 LCT…