Libro VII. Disposiciones finales y transitorias

Gradual reduction of the tax rate of the Income Tax for the Regime on Profits from Lucrative Activities.

Transitorily, in the Regime on Profits from Lucrative Activities contained in Section III of Chapter IV of Title II of Book I, the tax rate of the Income Tax for this regime shall be gradually reduced, as follows:

1.For the settlement period from January one (1) to December thirty-one (31), two thousand thirteen (2013), the tax rate shall be thirty-one percent (31%).

2.For the settlement period from January one (1) to December thirty-one (31), two thousand fourteen (2014), the tax rate shall be twenty-eight percent (28%).

3.For the settlement periods from January one (1), two thousand fifteen (2015) onward, the tax rate shall be that contained in Section III of Chapter IV of Title II of Book I of this Law.

Gradual adjustment of the tax rate of the Income Tax for the Optional Simplified Regime on Income from Lucrative Activities.

Transitorily, the tax rate for the monthly taxable income bracket of Q.30,000.01 and above, of the Optional Simplified Regime on Income from Lucrative Activities contained in Section IV of Chapter IV of Title II of Book I of this Law, shall be gradually adjusted, as follows:

1.From January one (1) to December thirty-one (31), two thousand thirteen (2013) the tax rate shall be six percent (6%).

2.From January one (1), two thousand fourteen (2014) onwards, the tax rate shall be that contained in Section IV of Chapter IV of Title II of Book I of this Law.

Taxpayers who at the start of the entry into force of the Income Tax regulated in Book I of this Law were registered under the regime established in articles 44 and 44 "A" of Decree Number 26-92 of the Congress of the Republic and its amendments, may opt between remaining registered in the Optional Simplified Regime on Income and Lucrative Activities, without need for prior notice to the Tax Administration, or opting to request registration in the Regime on Profits from Lucrative Activities established in Book I of this Law. If they wish to register in the Regime on Profits from Lucrative Activities, they may request it before the start of fiscal year two thousand thirteen, so that it takes effect as of January of the year two thousand thirteen (2013).

Taxpayers who at the start of the entry into force of this Law were registered under the regime established in article 72 of Decree Number 26-92 of the Congress of the Republic and its amendments, may opt between remaining registered on its own initiative in the Regime on Profits from Lucrative Activities without need for prior notice to the Tax Administration or opting to request their registration in the Optional Simplified Regime on Income from Lucrative Activities, established in Book I of this Law. If they wish to register in the Optional Simplified Regime on Income from Lucrative Activities, they may request it before the start of fiscal year two thousand thirteen, so that it takes effect as of January of the year two thousand thirteen (2013).

From the entry into force of this Law, the Executive Branch, within the time limit of two (2) years, shall submit to the Legislative Branch the bill to amend or repeal the legal provisions establishing exemptions, exonerations, privileges or special treatments of the Income Tax established in other laws, so that they are consistent with this Law and international treaties.

In the case of depreciations that have been applied before the entry into force of this Law and that exceed the base value registered in the municipal cadastre or fiscal registry, the taxpayer may continue with the depreciation thereof as a deductible expense, only if it proves the investment effectively made in the immovable properties.

The Supreme Court of Justice, within the time limit of one (1) year, from the date of publication of this Law, may create specialized criminal Trial Courts and tribunals to which jurisdiction is attributed to hear tax and customs offenses, as well as temporary closures of companies, establishments or businesses.

Subsection f) of Article 4 of Decree Number 73-2008 of the Congress of the Republic, Solidarity Tax Law, is reformed, which shall read as follows:

"f) Individual or legal persons and the other entities or patrimonies subject to the Solidarity Tax, that pay Income Tax in accordance with the Optional Simplified Regime on Income from Lucrative Activities of this Tax."

Within the time limit of ninety (90) days counted from the entry into force of each book of this Law in the official gazette, the Executive Branch, through the Ministry of Public Finance, must issue the regulations or amend the corresponding ones, separately for each book of this Law.

The following are repealed:

1.Decree Number 26-92 of the Congress of the Republic, Income Tax Law, and its amendments, as of the entry into force of the Income Tax contained in Book I of this Law.

2.Decree Number 26-95 of the Congress of the Republic, Law on the Tax on Financial Products and its amendments, as of the entry into force of the Income Tax contained in Book I of this Law.

3.Numeral 8 of Article 2 of the Law on the Tax on Fiscal Stamps and Special Stamped Paper for Protocols, provided the levy on the distribution of dividends in the Income Tax contained in Book I of this Law enters into force.

4.Unconstitutional.*

5.All legal provisions that conflict with what is established in this Law are repealed.

This Decree was declared of national urgency with the favorable vote of more than two-thirds of the total number of deputies comprising the Congress of the Republic, approved in a single debate and shall enter into force eight (8) days after the date of publication in the Official Gazette, with the exception of:

1.The Income Tax contained in Book I of this Law, which shall enter into force on one (1) January two thousand thirteen (2013).

2.The Specific Tax on the First Registration of Land Motor Vehicles contained in Book II, which shall enter into force on the day following the date of publication in the Official Gazette of the resolution of the Council of Ministers of Central American Economic Integration, which authorizes a rate of zero percent (0%) for Import Tariff Duties on the land vehicles described in said book.

3.The amendments to Decree Number 70-94 of the Congress of the Republic, Law on the Tax on Circulation of Land, Maritime and Aerial Vehicles, contained in Book V, which shall enter into force on one (1) January two thousand thirteen (2013).