This law creates two simplified regimes and modifies the small taxpayer regime, but also has general application provisions to all taxpayers. What aspects can be applied if there is no regulation?
To date, the respective regulations have not been issued and placed in force, a work that according to the same decree corresponds to the Ministry of Finance (MINFIN).
Asked the Superintendence of Tax Administration (SAT) indicates which provisions of the law can be applied, although there is no regulations such as reforms to the Value Added Tax Law (VAT) and the Tax Code. These include changes to the small taxpayer and reforms to the Tax Code as to article 120 that are general provisions with new obligations for all taxpayers.
This law was published in the Official Gazette on December 9, 2024, and becomes valid 4 months later, that is, this April 9, in which it establishes that the regulation must also be issued, according to the decree.
The Minfin reported on Tuesday, April 8 that it has been working in coordination with other public sector institutions, the development of the Regulation for the application of the aforementioned law, however, indicated that it still requires an opinion by the Ministry of Agriculture, Livestock and Food (MAGA), since it advances in determining the corresponding requirements and procedures based on the provisions of the new law.
In addition, it is added that the magician must socialize in its electronic portal the provisions related to the requirements, procedures and procedures in order that users can pronounce on them, consultation that is made as indicated in article 10, of the Law of Simplification of Administrative Procedures, Decree 5-2021.
The Minfin indicated that, at the end of this process of consultation, this ministry must complete the file, transfer it to the Attorney General’s Office (PGN) which must analyze and give the guarantee, and after this it must be sent to the General Secretariat of the Presidency (SGP) for the final opinion and issuance of said regulation.
However, consulted the magician about that he needs with respect to the mentioned process, he replied through the Communication Office that nothing is needed and that he has already moved to the minfin, which is the institution that coordinates.
He adds that the magician has fulfilled what has been required.
The law establishes that taxpayers, to register these two new regimes, require not only specific authorization of the SAT, but a previous opinion of the magician that qualifies it as a producer, marketer and intermediary of products of the primary regime or the livestock regime.
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To obtain the authorization of the SAT, it must also meet several requirements such as accreditation of the right on the property and the extension where the product is cultivated or raised, an estimated amount of annual production which must be done in a technical way, fiscal solvency, estimated amount of production of the period in which it is registered to the regime, salary book and form reported to the IGSS, registration of shareholders owners of actions in case of legal persons.
What aspects of the law can be applied, although there is no regulation?
Consulted the SAT replied that some articles can be applied.
He added that, from the entity’s perspective, the related VAT Law and Tax Code can be applied, but the rest must wait for the issuance of the corresponding regulation.
The SAT will carry out the necessary procedures to address the relative to what the law mandates, the institution replied through the Communication Office.
In the part that the regulation must wait, as can be seen in the content of the new legislation, there are the two new simplified taxation regimes such as the primary productive sector (agriculture and crafts) and the livestock. According to article 20 of the Decree, for taxpayers who are in other regimes, a term of three months is established to move to the new ones.
Meanwhile, the VAT Law includes, among other articles. The increase in the maximum revenue limit to be a small taxpayer which establishes in 125 minimum wages the equivalent of Q465 thousand. And reforms to the Tax Code include article 120 that establishes new obligations for all taxpayers before the SAT.
The minfin has not responded to the request for information about which aspects of the law can begin to be implemented without a regulation and which ones they should expect.
THE 8 GENERAL PROVISIONS
In addition, the new law also establishes eight general obligations or provisions that taxpayers must attend without the need to belong to these regimes, according to tax experts.
These were included in the reform of article 120 of the Tax Code, and which are explained below:
- The reform expands the use of the tax identification number (NIT) not only for fiscal aspects such as invoice and procedures in the SAT, but also for civil, commercial, labor-patron relations, financial, notarial transactions, administrative and judicial efforts. The SAT recently explained that with Decree 25-71, Law of the Unified Tax Registry and General Control of Taxpayers, it was already established since 1971 that the NIT must be used in various fields such as, but the auditor Oscar Chile Monroy, expert of MGI Chile Monroy and associates, said that the new law is added the areas of civil relations and that of notarials, in addition to the fact that it is established in the tax code.
- At the time of updating the Unified Tax Registry (RTU), the taxpayer registered as a legal entity must report the complete names of the partners and shareholders, or the corporate name of the partners or shareholder if it is a legal entity.
- When the SAT provides it, the taxpayer must consign the georeferencing of the taxpayer’s operation centers.
- In addition, it is indicated that the entities in charge of legal persons must provide the SAT for all the information that requires and any change in the records of said persons.
- The taxpayer whose registration information is inconsistent, must regularize its situation, but the SAT will disable it in the VAT regime.
- Meanwhile, taxpayers who declare without movement for 12 consecutive months will be disabled. They will regain their condition according to the procedures that the SAT determines.
- It also refers to the obligation to update and ratify registration data every year, within the month of its birth and constitution in the case of legal persons. If not, you will not be able to do any management before the SAT.
- Regarding operating permits or licenses, the obligation to the state entities to verify before granting permits or operating licenses, which the applicant is registered before the SAT, as a taxpayer taxpayer added.