What it is and how it can help avoid omissions and sanctions with the SAT - 2024-02-19 18:03:31

All mechanisms for determining obligations must also be observed because the Superintendence of Tax Administration (SAT) reviews compliance, which includes cross controls that have been implemented with the digitalization of declarations, issuance of electronic invoices and Other actions.

Depending on the taxpayer’s activities and the tax regimes to which they are affected, it is necessary to take into account that there are obligations that must be fulfilled every week, others monthly, quarterly, semi-annually or annually.

The SAT explains on its website that it is in charge of collecting about 13 different taxes. “Each one has its own different generating event (cause of the tax), as well as various regimes (modalities), bases and tax rates (rates or tariffs)”, in addition to the due dates for the declaration or payment without penalties, regardless of whether deals with direct and indirect taxes.

direct taxes

Direct taxes are those that directly tax the assets, income or income of taxpayers. Among these are:

The vehicle circulation tax (ISCV): This must be paid by the owners. The deadline for payment without fines or penalties expires every July 31, but you can pay earlier. In addition, to carry out procedures related to vehicles, it must be paid for the current year.

Income tax (ISR): This applies to income or profits obtained by people and companies, national or foreign entities or assets, whether resident or not in the country. It is determined according to its origin, for example: lucrative activities, labor income (including workers in a dependency relationship) and capital income. Depending on the regime in which the taxpayer is located, they must submit a monthly declaration of their ISR, and an annual one that expires on March 31 of each year. However, there are also taxpayers who are obliged to make ISR withholdings, and they must declare it to the SAT monthly, including the one made to employees, on specific dates with due dates: For example, during the 10 business days of the following month.

Single tax on real estate (IUSI): It must be paid by the owners of real estate, whether rural or rural and urban. According to the SAT, the majority is collected and administered by the municipalities, and in other cases through the Directorate of Cadastre and Real Estate Appraisal of the Ministry of Finance (Dicabi). The IUSI payment is quarterly or annual, it is added. If it is done quarterly, it expires the following month of each quarter. That is, in April, July, October and January.

Isolidarity tax (ISO): In this case, the SAT details on its site that it must be paid by people or companies that are affiliated with the Income Tax Regime, that have their own assets, carry out commercial and agricultural activities and obtain a gross margin greater than four percent ( 4%) of your gross income. Your payment is quarterly.

In the case of the tax on inheritances, legacies and donations, the payment must be made by the beneficiaries.

Indirect taxes

These tax the consumption of goods and services. It is transferred in the production chain until payment is made to the end user. An example is that the importer transfers the charge to the producer or products, this to the distributor and this is the one who charges the final consumer. Among these they mention:

Value added tax (VAT): It is paid by every person who buys any good or acquires a service, with a rate of 12% of the value of the product, and it must always be included in the price of what is purchased. In this case, taxpayers of the General Regime must report each month the VAT paid on their purchases and the VAT collected on their sales.

Tax on the distribution of crude oil and petroleum-derived fuels (IDP): This is charged per gallon within the price to the end user and the taxpayer is obliged to transfer it to the SAT every week. To do this, you have 5 business days after the end of the week to report, and you must present an informative sworn declaration of balances, purchases and sales monthly during the first 10 calendar days of the following month.

Tax on the distribution of distilled alcoholic beverages, beers and other fermented beverages: The base of the tax is the sales price to the final consumer, suggested by the manufacturer or importer. It is reported to the SAT on a monthly basis, between the first 10 business days of the following month.

Tax on tobacco and its products: It must be paid by manufacturers and importers. It must also be transferred to the SAT within the first 10 business days of the following month.

Cement distribution tax: Taxes the distribution of cement in the national territory. Manufacturers and importers must submit it to the SAT. The term is the same as the previous two.

Withholdings: It must be remembered that taxpayers who are retaining agents They must transfer the withheld amount to the SAT monthly. For most, there are 10 business days the month following the withholding, in the case of VAT withholdings it is 15 business days, commented Coyoy.

“Compliance with these tax obligations is crucial for the legal and efficient operation of companies in Guatemala. The first quarter of 2024 represents an intensive period in terms of fiscal responsibilities,” says Pérez.

It states that if necessary, companies should seek professional advice to guarantee full compliance with these regulations and avoid sanctions.

He adds that the closest in the first quarter are:

Fourth quarterly ISO payment (corresponding from October to December), due on January 31.
Annual reconciliation of ISR withholdings made to employees in 2023, due on February 29.
The annual ISR Declaration expires on March 31.
In addition, taxpayers subject to transfer pricing must include the corresponding annex when filling out their income tax return.
Those who are special taxpayers or VAT withholding agents also have the additional obligation to present audited financial statements to the SAT.
Without forgetting the aforementioned regimes, those related to small taxpayers and agricultural taxpayers, and specific taxes on products, among others.

Other obligations

There are other obligations that are not exactly tax or administered by the SAT, comments auditor Mario Coyoy, Tax Partner at the Deloitte firm and Coordinator of the Tax Commission of the Guatemalan Institute of Public Accountants and Auditors (IGCPA), who mentions some and others. They are compiled from information from the Grajeda.gt firm and in each entity:

Take into account that as of January 1 there is a new minimum wage and it is in effect all year round.
The IGSS, IRTRA and INTECAP fees and payroll are reported monthly within 20 calendar days of the following month.
The Employer’s report must be submitted to the Ministry of Labor annually, and is due on the last day of February (in 2024 it is February 29).
Make the ISR projection of employees. In January or at the beginning of the employment relationship, the ISR that must be withheld each month must be determined for employees who have a salary of Q4 thousand or more.
The reconciliation of employees’ ISR must be submitted annually. In this case it is no later than February 29, 2024.
The municipal ornament ticket. It has an annual payment, which can be made in January or February. In this case, the company can deduct the amount from each worker on the payroll according to their income, and it is paid to the municipality in January or February. If they do not deduct it, the worker must pay it directly.
The semi-annual Inventory Balance Report updated as of December must be submitted in January and the June report must be submitted in the month of July.

It recommends that taxpayers constantly review their tax calendar taking into consideration their industry and economic activity, since there are specific taxes for certain industries such as cement, oil, beverages, work, and general taxes such as ISR and VAT.

Also pay attention to the due dates, since direct taxes such as the ISR have heavy fines, but those that are not your own are more drastic since they come from third parties, and have a fine of up to 50% regardless of whether you pay the next day. expired, plus interest.

“Many taxpayers fall into the common mistake of believing that since they do not have to disburse money for a tax, they do not have to file the declaration, and then they realize that they have penalties for omissions,” Coyoy warned.

Sources: Data compilation from: Auditor Edy Pérez, managing and tax partner of Grant Thornton Guatemala; Auditor Mario Coyoy, Tax partner at the Deloitte firm and Coordinator of the Tax Commission of the Guatemalan Institute of Public Accountants and Auditors (IGCPA); and the SAT electronic sites, and the Grajeda.gt firms; Tezó and Associates; Vesco Consultants; PWC; atlas.com.gt, LA Monzón y Asociados.