15 January 2014 Global Tax Alert News from Americas Tax Center Guatemalan Congress approves amendments to tax laws EY Americas Tax Center The EY Americas Tax Center brings together the experience and perspectives of over 10,000 tax professionals across the region to help clients address administrative, legislative and regulatory opportunities and challenges in the 33 countries that comprise the Americas region of the global EY organization. • Copy into your web browser: http://www.ey.com/US/en/ Services/Tax/Americas-TaxCenter---borderless-clientservice On 20 December 2013, through a publication in the Official Gazette, Guatemala approved Decree No. 19-2013 (the Decree), which contains a series of amendments to the tax laws. The Decree amends the provisions on infractions sanctioned with temporary closure and recovery of net and collectable debt receivables under Chapter I – Amendments to Tax Code, Decree No. 6-91. The Decree also modifies the following provisions of Chapter II – Amendments to Tax Law Update, Decree No. 10-2012: • Capital income and capital gains • Presumption of profit • Capital incomes excluded from tax base • Presumed income for professionals • Gross income • Deductible and non-deductible costs and expenses • Construction and similar activities, buy/sell real estate, land special treatment for common areas and services in real estate projects • Quarterly payments • Simplified regime over income, form of payment, obligation to withhold, monthly sworn statement • Capital income, capital gains and losses Additionally, the decree modified the exempt acts and contracts provisions contained in Chapter III - Stamp Tax and Stamp Paper for Protocols Law, Decree No. 37-92. The decree made changes to Chapter IV - Final, transitional and repeal provisions. According to Section 30 of the decree, its provisions are effective as of the day following its publication (i.e., 21 December 2013). The Executive Branch shall amend the regulations to adjust them to the Decree´s provisions within 90 days following its effective date. For additional information with respect to this Alert, please contact the following: Ernst & Young, S.A., Guatemala City • Francisco Mejía +502 2386 2409 francisco.mejia@gt.ey.com Ernst & Young, S.A., San José, Costa Rica • Alexandre Barbellion +506 2208 9800 • Rafael Sayagues +506 2208 9880 alexandre.barbellion@cr.ey.com rafael.sayagues@cr.ey.com Co-Directors of EY Americas Tax Center • • Global Tax, Eric Solomon, Washington, DC Global Tax, Michael Mundaca, Washington, DC EY Americas Tax Center 2 • America’s Tax Center Chief Operating Officer Declan Gavin, Washington, DC • ATC - Tax Effective Supply Chain Management (TESCM) Lisa Lim, New York • ATC - Customs William Methenitis, Dallas • ATC - Tax Performance Advisory (TPA) Gary Paice, Chicago • ATC - Global Compliance and Reporting (GCR) Ken Brown, Dallas • ATC - Tax Policy Michael Mundaca (interim), Washington, DC • ATC - Global Tax Desks Gerrit Groen, New York • ATC - Value Added Tax (VAT) Jean-Hugues Chabot, Montreal, Canada • ATC - Tax Controversy Rob Hanson (interim), Washington, DC • ATC - Insurance Terry Jacobs, Washington, DC Global Tax Alert Americas Tax Center EY | Assurance | Tax | Transactions | Advisory About EY EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com. Americas Tax Center © 2014 EYGM Limited. All Rights Reserved. EYG No. CM4104 This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. Please refer to your advisors for specific advice. ey.com