The myth of fiscal regressiveness in Honduras
| | | | | | | | | |

The myth of fiscal regressiveness in Honduras

Sophists were ancient Greek philosophers who, among other things, taught the art of the use of words. Their methods were not always entirely ethical, and it is said that they practiced the art of presenting the false as true. A sophism, therefore, is an argument that appears to be true, but which at bottom is…

The right to employment for individuals with disabilities in El Salvador
| | | | | | | | | |

The right to employment for individuals with disabilities in El Salvador

By: Carlos Rodriguez El Salvador ratified Convention 111 of the International Labor Organization (ILO) in 1995, which in its Art 5, establishes that special measures for the protection of vulnerable people, including people with disabilities, are not discriminatory; therefore, it has enacted a diverse legislation that tends to apply these favorable measures for people with…

Law for the promotion of innovation and manufacturing technologies in El Salvador
| | | | | |

Law for the promotion of innovation and manufacturing technologies in El Salvador

By: Suzanne de Tablas The “Law for the Promotion of Innovation and Manufacturing of Technologies” was recently approved by the deputies of the Legislative Assembly with 69 votes in favor. The purpose of this law is the following: Contribute to the economic growth and sustainable development of El Salvador. Accelerate innovation and technological manufacturing such…

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

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?
| | | | | | | | | |

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)
| | | | | | | | | | | | | | |

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
| | | | | | | | |

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
| | | | | | | | | |

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….

Cancellation of an old mortgage in Nicaragua
| | |

Cancellation of an old mortgage in Nicaragua

By: Daniela Matus Many debtors with loans originated in Nicaragua before the economic crisis of the national financial system in the year 2000-2001 and with old mortgages that had not been cancelled, did not know which institution they needed to go to cancel the mortgages on their properties or which procedure to follow or before…

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

“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?
| | | | | | | | | |

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
| | | | | | | | | |

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…