From an Article by Oscar Chile Monroy:
There are several classifications for tax exemptions. For the case at hand, it is useful to analyze objective and subjective exemptions. When an exemption is granted on income or revenue of a person, we are talking about objective exemptions. In our legislation such benefits are granted to entities classified under Decree 29-89, which are exempt from income from exports. In the case of associations, foundations and religious institutions, under the law on income tax (ISR in Spanish) and the Law of Value Added Tax (IVA in Spanish), the tax exemption is directed towards income earned, subject to compliance with the conditions imposed by the aforementioned laws. In these cases it is not the person or entity that is exempt, but their incomes, as is clearly stated in Article 6 of the Act which provides that income derived from associations, foundations and religious institutions is exempt from income tax. The VAT law, in Article 7 paragraph 13, states that are exemption are granted on services provided by associations, foundations and religious institutions. It can be concluded that the exemptions are granted on income and that the entity itself is not tax exempt.
Subjective exemptions are granted to an entity, requiring that the individual beneficiary have certain qualities and characteristics. These exemptions are found in Articles 73 and 88 of the Constitution of the Republic, which grant tax exemptions to private schools and universities. Note that in these cases the tax benefit is is given to the institution as such and people can say they are tax exempt.
The above analysis helps us to interpret the scope of Article 57 "A" of the Tax Code, embellished by Anti Evasion II law which states that an entity registered with the authorities as tax exempt, must obtain a state of financial solvency every year in order to keep its registration as an exempt person. It may be noted that this obligation only applies when the exemption is subjective, ie when it is given to the person, so it does not apply to associations, foundations and religious groups because in these cases the exemption is granted to income.
Source: MGI Chile Monroy
Everything about exports and imports in Guatemala.
Top companies - Quantities, amounts and prices.
More on this topic
El Salvador’s Congress approved the exemption of income tax to taxpayers who receive a Christmas bonus under $ 415.20, which is equivalent to two minimum wages on the trade and services sector.
According to Article 1 of that mentioned decree "Notwithstanding the provisions of the Income Tax Law and the Tax Code, for the current year are exempted from withholding and payment of income tax, all incomes received by way of Christmas bonus to workers covered by the Labor Code and the Additional Cash up Compensation Act to an amount not to exceed two times the minimum wage on trade and service sector.
The Legislative Assembly of El Salvador has approved a temporary law which allows debtors to the state to apply for a payment plan of up to six months.
Debtors who request the payment plan within 90 days can enjoy this benefit which exempts them from penalties and interest. This decree is intended for individuals and businesses that have experienced conflict in paying the taxes required by law.
The reform under public consultation includes tax on remittances sent abroad, on the payment or crediting of interest, commissions and other financial expenses by natural or legal persons domiciled in Costa Rica.
From the order by the Ministry of Finance published in La Gaceta:
At the request of producer cooperatives Congress is considering eliminating the tax for the sector.
What has been suggested is reforming a decree which "designates a 1.5% retention of Income Tax (ISR by its initials in Spanish) on cooperatives for their agricultural activities, which according to these entities affects them, because they generate illiquidity and this prevents coffee farming being a sustainable activity," noted an article in Laprensagrafica.com.