To understand the changes involved in Decree 31-2024 that enters into force on April 9, it is necessary to know that it is divided into four parts that modify the VAT Law and the Tax Code, creating two new special regimes of simplified taxation, and even reforming the School Food Law.
This was explained on Wednesday, March 19 Óscar Chile Monroy, tax and financial consultant of the MGI Chile Monroy firm and associates, in an exclusive webinar for free press subscribers who registered and who raised their doubts to the expert.
New regimes
In the Law for the Integration of the Primary and Agricultural Productive Sector (Decree 31-2024), the new special regimes of simplified taxation are aimed at taxpayers who are in two segments: one is the activity of production and marketing of products of the agricultural sector and crafts and the other for livestock, hydrobiological and poultry production.
However, it must be taken into account that only the sales part for supermarkets, cantonal, municipal markets, collection centers and restaurants can only be included in these regimes.
In the case of agricultural and crafts, it should not go from smooth 1,500 minimum wages, which currently represent about Q13 million 030 thousand. And for livestock no sales limit were established.
The rates for both are 1.5% on gross and 2% sales for exporters. And, on the profits of bovine products intermediaries, the rate is 10%. Payments are definitive and total, with statements every month.
However, in these regimes, all producers derived from these conditions cannot be, and if they sell to other businesses or entities other than those mentioned that part must be reported in other regimes, which have higher taxes, since the law authorizes the duality of regimes.
According to Chile Monroy, another condition is that, to register in this regime before the SAT, it must have the opinion of the Ministry of Agriculture (Maga). According to the auditor, he already consulted that agency and has not yet established the criteria that must be met to have a favorable opinion.
CHANGES IN VAT
The other reform is to the Value Tax Law (VAT). The modification in this case is that the maximum annual limit of income from sales and services is increased to be in the small taxpayer (PC) regime, which has a 5% rate on gross income, with monthly statements. The new maximum limit will go from Q150 thousand currently to 125 minimum wages, which equals this year to Q465 thousand 381.
The expert commented that the taxpayer must analyze whether his business turn, who sells or provides, as well as the amounts of his income allow him to be in any of these three regimes, and also analyze which one will allow him to pay less tax, but always respecting the law.
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Another aspect to analyze in the case of whoever wants to go to the PC regime is whether to wait for this fiscal year to calculate its annual income and then change regime in 2026, or, according to Chile Monroy, as the law does not specify that it is a calendar year, in its criteria it could be taken a year counted from the month in which you want to make its transfer backwards. An example can be to take the period from June 2024 to May 2025.
Reform to the Tax Code
The auditor explained that the law also reforms article 120 of the Tax Code.
Among other points, the ones that have attracted the most attention is the requirement that taxpayers report information from their shareholders or partners at the time of updating their Unified Tax Registry (RTU) and the percentage of shares or capital that it has when appropriate.
In this case, the requirement in the law was very broad because it establishes that those who must report are legal persons, and that this figure not only includes commercial societies, but also associations, cameras, unions and organizations of various kinds. At the discretion of the auditor, this part can even be the submission of unconstitutionalities by the interested parties.
It also causes doubts that the tax identification number (NIT) must be used not only for fiscal and invoicing issues, but for civil, commercial, labor, financial transactions, administrative, judicial and notarial transactions.