Tax exemptions
in Central America
Thursday, April 19, 2012
In light of the failure of the first draft of the tax reform, the Government has announced more taxes, the end of exemptions on luxury goods and tax on remitted abroad.
After the defeat of the so-called 'Solidarity Tax Act' in the country's Supreme Court, the Government has been forced to re-do their fiscal and tax plans and launch a new legal package in Parliament.
Thursday, February 9, 2012
In Guatemala, in order to meet WTO requirements, exemptions will be eliminated gradually, and instead economic benefits will be awarded.
The exemptions are to be applied to sectors such as maquila industry, through Law 29-89, and the Free Zones Act.
Tuesday, January 31, 2012
With an amendment to the Fiscal Equity Act, the government of Nicaragua has eliminated the tax on milk-based drinks, and limited to 2% tax on rice.
The draft amendment to the Fiscal Equity Law, said the executive, aims to prevent a price rise of milk-based drinks and basic rice in this country and stimulate production.
Wednesday, October 12, 2011
If a reform of the law is approved, tax exemptions enjoyed by members of the scheme would be limited.
Although the purpose of the law reform is to modernize the free zones scheme and meet the requirements established by the World Trade Organization, companies currently operating under the scheme would be affected.
Thursday, October 6, 2011
In the isthmus the country with the most financial secrecy is Panama (14 in the list of "opaque jurisdictions"), followed by Costa Rica (41) and Guatemala (42).
Globally Switzerland is top of the list followed by the Cayman Islands, Luxembourg and Hong Kong, all ahead of the U.S. which is in 5th place.
Monday, March 14, 2011
The Economy Ministry canceled tax breaks to SPD and Sae Hyun due to labor law violations.
The Ministry canceled the benefits conferred by Decree Law 29-89 to both companies after receiving a complaint from the Ministry of Labor.
Friday, December 3, 2010
The Law on Development of Rural Community Tourism regulates procedures for companies in order to be eligible for tax exemptions, among other incentives.
With the publication of this Law in the Official Newspaper, the 250 Costa Rican companies dedicated to community-based tourism can initiate the process to choose a system of incentives and exemptions under Act 8724, in force since November 2009, designate rural community tourism activities as follows:
Friday, September 17, 2010
Since 2003, the Incentives for Renewable Energy Projects Law offers fiscal and economic incentives.
The regulation gives fiscal incentives to companies working on renewable energy projects such as: solar, Aeolian, geothermal, hydro energy among others.
Friday, August 6, 2010
Growth and economic stability, legal security, fiscal incentives, liberal immigration policies, the 2006-2008 real estate boom and the fact that hurricanes avoid it.
Six months after the first completed units were handed over to their new owners, the creation of the project that gave life to Trump Ocean Club and its sail-shaped tower is the subject of an interview by AméricaEconomía.com with the Panamanian developer, Roger Khafif, president of K-Group and Trump's partner in the project.
Friday, June 18, 2010
The government is looking for Spanish hotel groups to invest in the country, offering them almost 100% tax exemptions for 10 years.
These benefits could be extended if the company invests, in the 10 year period, at least 35% of the original sum.
Nicaragua wants to enlarge its hospitality offering, currently 7.800 at hotel rooms, to compete with its neighbors. Costa Rica, for example, has 38,000.
Friday, March 5, 2010
High taxes and evasion eroding economic growth in Latin America and the Caribbean.
New IDB study says governments must simplify tax systems and reduce evasion
Complex tax systems and widespread evasion are distorting investment decisions by companies in Latin America and the Caribbean, reducing the efficiency of markets and preventing governments from investing in infrastructure, education and other key public goods. This hinders the productive possibilities of the region’s economies, according to a newly released study by the Inter-American Development Bank (IDB).
Friday, March 5, 2010
High taxes and evasion eroding economic growth in Latin America and the Caribbean.
New IDB study says governments must simplify tax systems and reduce evasion
Complex tax systems and widespread evasion are distorting investment decisions by companies in Latin America and the Caribbean, reducing the efficiency of markets and preventing governments from investing in infrastructure, education and other key public goods. This hinders the productive possibilities of the region’s economies, according to a newly released study by the Inter-American Development Bank (IDB).
Wednesday, February 3, 2010
Funides, the Nicaraguan Foundation for Economic and Social Development, published a document called “Discussion on Nicaragua’s Tax Reform”.
The study comprises various sections.
Thursday, November 19, 2009
"If we want first-world services, we must pay first-world taxes" - Laura Chinchilla.
The tax burden in Central America hovers between Guatemala's 9.9% and Nicaragua's 17%. In Brazil its 29%, whereas Scandinavian countries have tax burdens around 40%.
Tax collection has been hardly hit by the economic crisis, making evident the need for fiscal reforms to solve the structural problems of the region's tax systems.
Monday, October 19, 2009
If the tax reform proposed by the Salvadoran government is enacted, machinery imports would pay 13% value added tax.
Additionally, expenditure reimbursements and tips would pay value added tax.
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