On December 9, 2024, Decree No. 31-2024 of the Congress of the Republic of Guatemala was published in the Official Gazette, which decrees the Law for the Integration of the Primary and Agricultural Productive Sector. The following is a brief summary of the law The purpose of the law is to create and regulate the following Special Simplified Taxation Regimes: a Tax Confidence Tax is established on the activities, acts and contracts taxed in this Law, the collection, control and supervision of which correspond to the Tax Administration, among them are: a) Special Regime for the Production and Commercialization of Products of the Agricultural Sector and Handicrafts produced in Guatemala, destined to supermarkets, cantonal and municipal markets, collection centers and restaurants.    b) Special Regime of Production and Commercialization of Products of the Livestock, Hydrobiological and Beekeeping Sector, destined to supermarkets, cantonal and municipal markets, collection centers and restaurants. Taxpayers that choose to register under the Primary Regime or the Livestock Regime will be exempt from applying Value Added Tax on the income obtained under such regimes. However, if in addition to these activities they carry out other activities, they must register under the corresponding VAT regime, either the General Regime or the Small Taxpayer Regime, according to the projected amount of their respective income. Taxpayers under the Primary or Livestock Regime must issue electronic invoices (FEL) in the name of the buyer for purchases made, when the buyer does not provide the corresponding invoice.   REGIMES ACTIVITY CONDITIONS TAX RATE Special Regime for Production and Marketing of Agricultural Products and Handicrafts Crafts produced in Guatemala Guatemala, (Primary Regime) Local sales to supermarkets, cantonal and cantonal and municipal markets and collection centers Gross sales do not exceed 3,500 minimum monthly salaries for the non-agricultural sector, (not including incentive incentive bonus) during the fiscal period from January to December of each year. 1.5% of gross sales Special Regime for Production and Marketing of Agricultural Products and Handicrafts Crafts produced in Guatemala Guatemala, (Primary Regime) Exports of primary sector products of the primary sector Export of agricultural products and handicrafts products and handicrafts that do not exceed 3,500 3,500 minimum monthly salaries in force for the non-agricultural sector, (not including incentive bonus) during the fiscal period from January to December of each year. 2% of gross sales Special Regime for Production and Commercialization of Products of the Livestock, Hydrobiological Livestock, Hydrobiological and Apiculture (Livestock Regime). Local sales to supermarkets, cantonal and cantonal and municipal markets and collection centers Dedicated to breeding, fattening, development, production, slaughtering, transformation and intermediation intermediation of livestock products, hydro-biological and beekeeping products. 1.5% of gross sales Special Regime for Production and Commercialization of Products of the Livestock, Hydrobiological Livestock, Hydrobiological and Apiculture (Livestock Regime). Export of livestock, hydrobiological livestock, hydrobiological and apiculture Export of agricultural products and handicrafts. 2% of gross sales Special Regime for Production and Commercialization of Products of the Livestock, Hydrobiological Livestock, Hydrobiological and Apiculture (Livestock Regime). Intermediary Intermediaries of bovine products of the livestock sector 10% of profits  Amendments to the Value Added Tax Law Decree 27-92  The sale of non-industrialized primary and livestock products, whose initial destination was for export and that for justified reasons were not exported; specifically, shrimp, salt, banana, plantain and melon, made by taxpayers registered in the General Value Added Tax Regime to persons who commercialize them at retail in cantonal, municipal markets and collection centers. For such purpose, they shall issue the corresponding invoice, without charging Value Added Tax.   Article 44 is amended The taxpayer who has more than one mercantile establishment must declare and pay the tax corresponding to the operations carried out in the same, jointly, in a single form. Article 45 is amended Individuals or legal entities whose amount of sale of goods or rendering of services does not exceed one hundred and twenty-five (125) minimum monthly salaries in force for the non-agricultural sector, not including the incentive bonus, in a calendar year, may request their registration to the Small Taxpayer Regime”.   Article 46 is amended. The taxpayer registered in the General Regime, whose income does not exceed the amount of one hundred and twenty-five (125) minimum monthly salaries in force for the non-agricultural sector, not including the incentive bonus, during the calendar year, may apply for registration in the Small Taxpayer Regime. The Tax Administration shall register him/her, giving notice of his/her new obligations, by the means it deems convenient, and the monthly period as from which he/she starts in this Regime.” Article 50 is amended. Small taxpayers must register in the Normal or General Value Added Tax Regime, in cases where their total income exceeds the amount equivalent to one hundred and twenty-five (125) monthly minimum wages in force for the non-agricultural sector, not including the incentive bonus, in the course of a calendar year.   Transitory Provisions Taxpayers registered in the Special Regime for Agricultural Taxpayers, Electronic Regime for Small Taxpayers, or Special Electronic Regime for Agricultural Taxpayers, must transfer within a term not exceeding three (3) months from the effective date of the Law, if they do not transfer within the term indicated above, the Tax Administration will register them in the General Regime of Value Added Tax and Income Tax in the Regime on Profits from Lucrative Activities. For a non-extendable period of one hundred and eighty (180) days, as from the entry into force of the regulations of the Law, the taxpayer or responsible person who has omitted to file a return or who wishes to rectify it, may file his returns extemporaneously or rectify them, and make the corresponding payment. The persons who have omitted to declare income, banked or not, obtained before the Law came into force, in respect of which they do not have documentation to justify the origin thereof, nor allow them to make the correct determination of the tax obligation, shall file a sworn tax return with information referring to the date of its filing. They will pay a tax rate of five percent (5%) on the undeclared income or inventories to be registered for the beginning of their accounting.  The Tax Administration may grant taxpayers facilities in the payment of the tax, up to a maximum of eighteen (18) months only for taxpayers registered in any of the regimes or special taxation modalities established in the Law. This Decree will enter into effect on April 9, 2025.   For further information please contact our offices. Mario Salazar                       mario.salazar@gt.Andersen.com Mauro Hernández                mauro.hernandez@gt.Andersen.com   Evelyn Guerra                      evelyn.guerra@gt.Andersen.com