Self-Employed workers law in Costa Rica
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Self-Employed workers law in Costa Rica

In the absence of publication in the Official Gazette La Gaceta, the “Law of the Self-Employed Worker” is already a reality. The new regulation is composed of only two articles and two transitory articles; however, its content brings substantial changes in favor of thousands of independent workers. The first article of the law defines an…

How to choose witnesses for an arbitration in Guatemala?
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How to choose witnesses for an arbitration in Guatemala?

By: Elías Arriaza It is possible that the story told by the plaintiff in its claim is in direct contradiction with the version of the facts asserted by the defendant. In such cases, the Arbitral Tribunal will have a special interest in the evidence provided in order to discover the truth, i.e., what really happened….

Global Taxes: The OECD’s Plans in El Salvador(part 2)
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Global Taxes: The OECD’s Plans in El Salvador(part 2)

By: Gonzalo Manzano In a previous installment (see here), we discussed the evolution of the Organization for Economic Trade and Development (OECD) in reducing competition between different tax jurisdictions through the global standardization of tax rules, and in changing the policy that determines where companies must pay their taxes. The creation of the “BEPS Plan”…

Tax penalties in Guatemala
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Tax penalties in Guatemala

By: Mario E. Archila In tax matters it is customary, in a cold and objective manner, to apply a penalty by “default“. However, this position must be rejected every time there are external elements that would make the penalty rule inapplicable, in this way, effectively, it is understood that we are in a system of…

Joint and several liability in labor matters in Honduras
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Joint and several liability in labor matters in Honduras

By: Susan Perdomo From the labor field, the needs of commerce have generated the creation of schemes for the rendering of services other than the one known as “employer – employee” relationship. These needs of the market have allowed the emergence of other figures such as intermediaries, contractors, and/or outsourcing, including the so-called employment agencies….

Costa Rica: Amendments to Law 7472. Law for the Promotion of Competition and Effective Defense of the Consumer
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Costa Rica: Amendments to Law 7472. Law for the Promotion of Competition and Effective Defense of the Consumer

On March 30, 2023, bill number 22.901, “Access to Justice for Consumers”, was approved in second debate, by means of which a series of significant amendments were made to Law 7472, Law for the Promotion of Competition and Effective Defense of Consumers.  In summary, the approved amendments consist of: The National Consumer Commission is granted…

“Global” Taxes: The OECD’s Plans (part 1)
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“Global” Taxes: The OECD’s Plans (part 1)

By: Gonzalo Manzano With the frenetic, progressive, and massive irruption of the Internet in the world, business paradigms worldwide began to change drastically. With connectivity, it is no longer necessary to wait months to receive an answer to a business offer, nor is it necessary to mobilize large amounts of bills in briefcases to pay…

In which cases are customs fraud fines being applied directly in Nicaragua?
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In which cases are customs fraud fines being applied directly in Nicaragua?

All imports are subject to the random selection mechanism that will determine whether or not the goods should be inspected, or subsequently verified through corresponding customs investigations or audits, which will then lead to a successive administrative challenge process before the General Directorate of Customs Services (DGA). In principle, art 64 of Law No. 265…

Capitalization of profits is not a taxable event for income tax purposes in Guatemala
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Capitalization of profits is not a taxable event for income tax purposes in Guatemala

By: David Erales. In the last 10 years there has been a difference of criteria between taxpayers and the Superintendence of Tax Administration as to whether the capitalization of profits of a corporation is regulated as an income tax generating event and, consequently, whether or not such tax must be paid. The capitalization of profits…

Usufruct of shares in Costa Rica
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Usufruct of shares in Costa Rica

By: Nikole Sánchez The usufruct is a right that gives a third party the possibility to use and enjoy a property that does not belong to him and grants him the possibility to take possession of the fruits it produces, in this case, the civil fruits that are those that come from businesses where money…

Considerations on the annual fiscal year-end closing in Honduras
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Considerations on the annual fiscal year-end closing in Honduras

The annual period for the computation of the taxable income tax begins on January 1 and ends on December 31, however, there are periods different from the calendar year, which we call “Special Tax Period”, which must be previously notified in writing to the Tax Administration and in accordance with such period, the tax return…

Considerations on the annual fiscal year-end closing in El Salvador
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Considerations on the annual fiscal year-end closing in El Salvador

In El Salvador, the obtaining of income by the taxpayers in the fiscal year or tax period in question generates the obligation to pay Income Tax. The corresponding tax must be settled by means of a Sworn Statement (F-11), contained in a form prepared by the Directorate General of Internal Taxes, which must be filed…