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07 April 2016

Guatemala enacts new tax incentive regimes law

On March 30, 2016, Guatemala enacted, via publication in the Official Gazette, Decree No. 19-2016 (Emerging Law for the Preservation of Employment),1 which modifies the tax benefits granted by Decrees No.29-89 (Drawback Law) and No. 65-89 (Law on Free Trade Zones) and was approved by the Guatemalan Congress on February 25, 2016.

The Decree establishes a series of changes to the current tax incentive regimes and adds two new regimes. The purpose of the law is to limit the access to benefits exclusively to taxpayers operating in the textile industry and technology services through call centers.2

The Decree will be effective as of March 31, 2016.

Contact Information
For additional information concerning this Alert, please contact:
 
Latin American Business Center
• Alexandre Barbellion+506 2208 9841
• Delia Cantoral+502 2386 2431
• Manuel Ramirez+502 2386 2407
• Rafael Sayagués+506 2208 9880

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ENDNOTES

1 In Spanish; "Ley emergente para la conservación del empleo"

2 Please see Tax Alert 2016-433, "Guatemalan Congress modifies tax incentive regimes."

Document ID: 2016-0638

 

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