Learn about the annual obligations that apply to your companies in each Central American countries. At BLP we can help you to ensure compliance in each country.
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Corporate Obligations Guide 2022 Central America
COSTA RICA
Learn about the annual compliance obligations that apply to your company in Costa Rica. At BLP we can help you to ensure compliance.
Payment of Corporate Tax:
- Applies to all companies registered in Costa Rica, whether active or inactive.
- Due date for filing and payment: January 31st 2022.
- Last day for receiving funds at BLP: January 25, 2022.
- The annual amount to be paid by companies depends on the gross income declared in the 2020-2021 fiscal period:
| Type of company | Tax |
|---|---|
| Legal entity with no economic activity or reported income. | Approx. USD$120.00 |
| Legal entity with gross income lower than 55,464,000.00 Colones. | Approx. USD$200.00 |
| Legal entity with gross income between 55,464,000.00 Colones and 129,416,000.00 Colones. | Approx. USD$240.00 |
| Legal entity with gross income higher than 129,416,000.00 Colones. | Approx. USD$395.00 |
Filing and Payment of Luxury Home Tax
- Applies to the residential units with a construction value in excess of USD $214,000.00.
- Due date for filing and payment: January 15, 2022.
- Last day to receive the information: January 12, 2022.
Inactive Companies Tax and Patrimony Declaration
- Applies to companies that do not develop or perform any economic activity.
- Due date for filing and payment: March 15, 2022.
- Last day to receive funds: March 7, 2022.
March: Annual Shareholders’ Meeting
- The shareholders must hold at least one meeting per year, within the first three months of the year, with the purpose of appointing the directors (where applicable), get to know the inventories and balance sheets, as well as to take the necessary agreements for the good performance of the company.
Payment of the Education and Culture Stamp
- Applies to all companies registered in Costa Rica, whether active or inactive.
- Due date for filing and payment: March 31, 2022.
- Last day to receive funds: March 20, 2022.
- The annual amount to be paid by companies ranges from approximately USD$10.00 and USD$30.00.
Resident Agent
- Companies that do not have a director or manager with domicile in Costa Rica, must appoint a Resident Agent whose sole responsibility will be to receive service on behalf of the company.
- Resident Agent must be an attorney with an office in the country.
Registry of Transparency and Final Beneficiaries
Applies to all legal entities, non-profit organizations and private trusts, who must file annually, through a platform managed by the Central Bank of Costa Rica, the information of their final beneficiaries:
- Due date for filing: April 30, 2022.
- Last day for BLP to receive information: March 22, 2022.
EL SALVADOR
Learn about the annual compliance obligations that apply to your company in El Salvador. At BLP we can help you to ensure compliance.
Update notification address
- Applies to Merchants with VAT registration who are are required to update the address to receive notifications.
- Expiration date: January 10, 2022
Report of dividends, shares, and shareholders/partners
- Companies that distribute dividends or profits, must report during January all distributions made in the preceding year, as well as a list of shareholders or partners whether or not they have received dividends, profits, or other remuneration.
- Expiration date: January 31, 2022
Income tax withholding report
- A report of all income tax withholdings that have been reported monthly in January of each year must be prepared.
- Expiration date: January 31, 2022
Report on inventories
- In February, it is necessary to file the detail of the realizable inventory (that is, the inventory that is sold) of the companies, article by article, detailing the name, quantity, or final amount on hand as of December 31 of the closed year.
- Expiration date: February 28, 2022
Municipal tax
- Applies to most municipalities in the country, including San Salvador, Santa Tecla, San Miguel, Antiguo Cuscatlán, etc., except for Santa Ana, which is in April.
- The statement must be filed before March 31 and the payment must be made before April 30, for income from the previous year.
- Expiration date: March 31, 2022; last payment date April 30, 2022.
Income tax
- Companies subject to the tax are required to file an income tax return, and must make a settlement of the income, the respective tax, and make the payment.
- The declaration must be filed within the first 4 months of the year.
- Companies must calculate their tax by applying the rate of 30% to the taxable income; except if they have obtained taxable income less than or equal to one hundred and fifty thousand dollars ($150,000.00), to which the 25% rate will apply.
- Expiration date: April 30, 2022
General Shareholders Meeting
- Applies to all companies in El Salvador.
- A General Shareholders’ Meeting must be held annually during May to approve the following: work report of the legal representative, financial statements for the year, the appointment of the company’s external auditor (and treasurer, if applicable), and application of the results of the prior year.
- Expiration: May 31, 2022
Balance Sheet, Income Statement and Tax Reconciliation
- In May, the Balance Sheet, Income Statement and Tax Reconciliation must be filed through Form F971.
- File audited financial statements for registration in the Registry of Commerce.
- File the appointment of the external auditor to submit registration in the Registry of Commerce.
- Expiration: May 31, 2022
Tax Opinion and appointment of Tax Auditor
- The appointed Auditor must file the Tax Opinion together with the Fiscal Report, the Financial Statements, the Tax Reconciliations, and supplementary information, no later than May 31 of the year following the declared period.
- Expiration: May 31, 2022
Renew the company registration and registration of premises
- Company registration and registration of premises must be renewed annually.
- For the renewal of company registration, the balance sheet and the fee payment receipt must be submitted duly audited. The payment of rights corresponding to the Deposit of the General Balance, Renewal of the Registration, and the Registration of the premises, branch, or agency must be made in the authorized banks or institutions of the financial system, through payment forms available at such institutions. The obligation must be met annually in the month in which the articles of incorporation were registered.
Obtain proof of registration of statistical information
- Every company must submit proof of registration of statistical information within sixty days from the date on which the company has been constituted; such requirement must be met annually in the month of the business owner’s birthday.
| Minimun assets | Maximun Assets | Fee |
|---|---|---|
| 0 | $11,428.57 | $ 5.00 |
| $11,428.57 | $57,142.86 | $8.00 |
| $57,142.86 | $114,285.71 | $10.00 |
| $114,285.71 | $228,571.43 | $15.00 |
| More than $228,571.43 | Unlimited | $20.00 |
GUATEMALA
Learn about the annual compliance obligations that apply to your company in Guatemala. At BLP we can help you to ensure compliance.
Permission to work on days off and holidays
- Any company that, due to the nature of its functions, has to operate on days off and holidays, must request authorization at the beginning of the year before the General Labor Inspection.
Adjustment of the minimum wage
- Adjust the minimum wage of the company’s workers under the Government Agreement issued by the President of the Republic of Guatemala for this purpose.
By Government Agreement No. 278-2021 published in the Diario de Centroamérica on December 17, 2021, the minimum wage that will govern as of January 1, 2022, is established as follows:
|
Economic Activity |
Daily Wage |
Monthly wage |
Incentive Bonus |
Total Wage |
|---|---|---|---|---|
|
AGRICULTURAL |
Q.94.44 |
Q.2,872.55 |
Q.250.00 |
Q.3,122.55 |
|
NON-AGRICULTURAL |
Q.97.29 |
Q.2,959.24 |
Q.250.00 |
Q.3,209.24 |
|
EXPORTER AND MAQUILA |
Q.88.91 |
Q.2,704.35 |
Q.250.00 |
Q.2,954.35 |
First 40 days of each year: Sworn Statement before a Notary, of compliance with labor obligations. Applies only to companies subject to Decree 29-89 of the Congress of the Republic of Guatemala Law for the Promotion and Development of Export and Maquila Activities.
- A company subject to Decree 28-89 must submit to the Department of Industrial Policy, a Sworn Statement before a Notary, through its Legal Representative, stating that during the previous calendar year, the entity has complied with the obligations established in the labor laws of the country and the Information update bill for companies covered by Decree Number 29-89 of the Congress of the Republic of Guatemala Law for the Promotion and Development of Export and Maquila Activities.
Employer Report
- During the first 2 months of each year, every employer is required to submit to the Ministry of Labor and Social Security a report containing the names of the employees, total salary earned by each in the previous year, nationality, and type of remuneration.
Submit the entire payroll.
Any company subject to Decree 29-89 of the Congress of the Republic of Guatemala Law for the Promotion and Development of Export and Maquila Activity must report each year the employee payroll.
- Submit annually, to the Ministry of Labor and Social Welfare, through the General Inspection of Labor and Social Welfare, within the period of the first two (2) months of each year, the company’s entire employee payroll.
Annual Meeting of Shareholders/Partners
- The shareholders/partners must hold an Annual Meeting, within the first 4 months following the close of the fiscal year, in which the following matters must be presented: Financial statements corresponding to the last fiscal year, report of the Administrative Body, report of the Supervisory Body of any profit distribution, appointments of the company’s administrators and any other matter indicated in the deed of incorporation.
Annual sworn statement to the Tax Authority
- Every taxpayer registered in the Simplified Optional Regime on Income from Lucrative Activities must submit an informative annual sworn statement to the Tax Authority, within the first 3 months of each year, reporting the income obtained in the immediately preceding calendar year.
Transfer Pricing Study
- Presentation of the transfer pricing study before the Tax Authority within the first 3 months of the year.
Environmental Impact Study
- Every company, regardless of the type of activity, must develop before December 19, 2022, a current Environmental Impact Study prepared by an environmental engineer endorsed by the Ministry of Environment and Natural Resources. If such a study is not available at the time of inspection by the environmental authorities, the company will be sanctioned with a fine (the first time) and in case of recidivism, possible suspension of activities.
Environmental License
- Regardless of the line of activity, every company must have a current Environmental License before December 19, 2022, renewable every 3 years, issued by the Ministry of Environment and Natural Resources. If such license is not available at the time of an inspection by the environmental authorities, the company will be sanctioned with a fine (the first time) and in case of recidivism, possible suspension of activities.
Occupational Health and Safety Plan
- Every employer must maintain an Occupational Health and Safety Plan registered with the Ministry of Labor and Social Security of Guatemala.
Publication of Financial Statement
- Submit the company’s financial statement to the Mercantile Registry of Guatemala for publication at the end of each fiscal year.
Update or Ratification of information before the Tax Authority
- Updating or ratification of the company’s registration data in the Unified Tax Registry of the Superintendency of Tax Administration is required annually. The update or ratification must include the current status of its main economic activity or activities, defined as those that in the corresponding taxation period earned more than fifty percent (50%) of taxpayer income.
HONDURAS
Learn about the annual compliance obligations that apply to your company in Honduras. At BLP we can help you to ensure compliance.
Industry, Commerce and Service Tax (Municipal)
- The Municipal Operating Permit must be renewed each year, payable annually or monthly, and is mandatory for all natural persons or individual or social merchants on their commercial activity, according to the volume of production, income, or annual sales.
- Expiration: January 31.
- Failure to comply with this provision will incur a fine equal to a month’s tax.
| From L. 0.00 to L. 500,000.00 | L. 0.30 per thousand |
|---|---|
| From L. 500,001.00 to L. 10,000,000.00 | L. 0.40 per thousand |
| From L. 500,001.00 to L. 10,000,000.00 | L. 0.30 per thousand |
| From L. 20,000,001.00 to L. 30,000,000.00 |
L. 0.20 per thousand |
| From L. 30,000,001.00 |
L. 0.15 per thousand |
Annual Statement of Partners and Profit Sharing
Companies of any kind that are established or are to be established, as well as credit institutions, capitalization companies, and insurance companies that operate in the country, and that distribute dividends among their shareholders, are obligated to provide the SAR, before the last day of February of each year, a report containing:
- The names of shareholders, according to company registration
- The number of shareholders
- The number of shares
- The nominal value of the shares
- The percentage of dividends distributed per share in the semesters prior to the report
- The total amount of cash paid or payable to each shareholder.
Corporations or partnerships organized outside of Honduras and incorporated in the country, including concession holders and their subsidiaries, must report as stipulated by law.
- Expiration date: February 28, 2022
Income Tax
- Applied to natural or legal persons, the Income Tax is an annual tax on income from capital, work, or a combination of both.
- Expiration: April 30, 2022
- The annual amount that companies must pay depends on the gross income declared in the fiscal period 2020-2021, as follows:
- 25% on net income if gross income is equal to or less than L 1,000,000,000.00 (approx. $41,291,601.00).
- 1% if they generate gross income greater than 1,000,000,000.00 and the application of the previous 25% is less than 1% of gross income.
- 5% as a Solidarity Contribution when the net taxable income is greater than L 1,000,000 (approx. $41,291)
Total Net Active Tax
- Applies to legal persons, applicable on the Total Net Assets of legal persons domiciled in Honduras categorized as merchants under the Code of Commerce. The tax rate is one percent (1.0%) on the value of the total net assets determined in the General Balance dated December 31 of the taxable year.
- Expiration: April 30, 2022.
Solidarity Contribution
- Applies to legal entities, except those included in the Special Export and Tourism Regimes without prejudice to the provisions of Article 22 of the Income Tax Law. The Solidarity Contribution of five percent (5%) is applied to the excess of net taxable income over one million lempiras (L 1,000,000.00).
- Expiration: April 30, 2022.
Capital Gains
- Applies to a natural or legal person. Capital gains obtained by natural or legal persons, domiciled or not in Honduras, will pay a Single Tax of ten percent (10%) for which they will not be subject to the progressive income tax rate.
- Expiration: April 30, 2022.
Transfer Pricing
- Applies to:
- Taxpayers who, as of December 31 of the reporting year, belong to the Medium or Large Company sector and that have conducted operations with local related parties and/or domiciled abroad, in accordance with the regulations established in Decree 232-2011 and its respective Regulation;
- Taxpayers not classified in the previous rule who have operations with persons domiciled or resident in a Tax Haven.
- Taxpayers not included in the previous segment, who have carried out operations with local related parties and/or domiciled abroad, within the same fiscal period in an accumulated amount greater than $500,000, or its equivalent according to the exchange parity between the national currency and the foreign currency in which said operations were carried out, in force as of December 31 of the reporting period, according to a publication made by the Central Bank of Honduras.
- Expiration: April 30, 2022
- Failure to submit or the submission of the annual transfer pricing information sworn statement with false, incomplete, or inaccurate data at the time will be sanctioned based on No. 1 of Decree 232-2011 with a fine of ten thousand dollars ($10,000), payable in its equivalent in Lempiras.
Miscellaneous Obligations/Information Returns
- Legal entities that, due to their line of business, must file informative declarations, and make the payment, when applicable, of the following taxes:
- Production Consumption Soft Drinks.
- Production Consumption Beer.
- Production of Alcohols and National Liquors.
- Sales Tax.
- Casinos and Gambling Games.
- National Charity Lottery Urn Prizes.
- Concessioned Electronic Lottery Prizes.
- Special Mobile Telephony Contribution.
- Special Contribution for Food and Drinks under the Special Regime.
- Contribution of Casinos and Slot Machines.
- Withholding on Source Employees.
- Withholding on Sales to the State.
- Sales Withholding (Art. 8).
- Withholding 12.5% (Art. 50).
- Non-Resident Withholding (Art. 5).
- Withholding Dividends or Profits.
- Interest Withholding (Art. 9).
- I.S.R. Advance Withholding (1% Article 19).
- Withholding Scheduled Tax on Income for Housing Rental.
- Capital Gains Withholding (10%).
- ISV retention for Debit and Credit cards.
- Sales Tax Electronic Lottery Tickets Raffles and Draws.
- Monthly Declaration of Withholdings (DMR).
- Tourist Services Rate.
- Expiration: The 10th day of each calendar month.
Payment on account of Income Tax and Solidarity Contribution
- Applies to all natural or legal persons after making their first income statement and solidarity contribution.
- Expiration: June 30, September 30, and December 31
Real Estate Tax (Municipal)
- Applies to natural and legal persons and is paid annually, applying a rate of up to L.3.50 per thousand on the value of urban real estate, and up to L.2.50 per thousand on rural real estate. The applicable rate will be set by the Municipal Corporation, but in no case will the increase be greater than L.0.50 per thousand, compared to the current rate, calculated on the property’s cadastral value and, failing that, on the value declared.
- Expiration: August 31, 2022.
Annual: Personal Tax (Municipal)
- Applies to natural persons who each year must pay a single personal tax on their annual income in the municipality in which such income is received.
- Expiration: April 30, 2022.
NICARAGUA
Learn about the annual compliance obligations that apply to your companies in Nicaragua. At BLP we can help you to ensure compliance.
Business Registration Renewal (Municipal)
Any natural or legal person engaged in the sale of goods, industries, or provision of services, whether they are professionals or not, must register with the corresponding municipality and renew their registration every year.
- Period: December 1 to January 31 (Managua) and January 1 to 31 (other municipalities).
- Base: 2% on the monthly average of the gross income of the last three months of the previous year or of the months elapsed since the opening date, if less than three months.
- Penalty: In case of non-compliance, a 5% fine will be applied for each month of delay.
- Requirements: Within the requirements for renewal are:
- Proof of Label and/or no Labels;
- Information Update Form and supporting documentation;
- Environmental Guarantee.
Taxes on Labels (Municipal)
The use of propaganda or publicity through signs located in each municipality of the Republic of Nicaragua is subject to tax.
- Period: January.
- Payment due: The tax must be paid in January of each year in the corresponding municipality. In case of non-compliance, a 5% fine will be applied.
- Base: According to the Classification of the Label and its dimensions.
Information Update (Municipal)
Any person, whether natural or legal, that has a business registration must update and/or, where appropriate, ratify to the municipal authority the information declared in the registration system as a taxpayer. In any case, the taxpayer must provide certain supporting documentation that proves the existence of the natural or legal person, modifications, and/or reforms.
Environmental Guarantee (Municipal)
Any natural or legal person who has a business registration, as part of the strengthening of the Environmental Management Plan in charge of each Municipal Authority, must request an Environmental Guarantee from the Municipal Authority as a requirement to request the opening of a business or the renewal of business registration.
Declaration and payment of annual Income Tax (IR)
All taxpayers registered in the general regime in the country, whether active or inactive, or legal entities that do not have operations, must declare and pay the annual income tax.
- Last day to declare and pay: the last day of February .
- Amount to pay: 30% of the net income or percentage of the Definitive Minimum Payment (1%, 2%, or 3%) of the gross taxable income.
Tax on Real Estate (Municipal)
Annual tax levied on real estate located in the territorial district of each municipality of the Republic of Nicaragua.
- Period: First calendar quarter for the first 50% (no later than March 31), and second quarter for the second 50% (no later than June 30).
- Base: 1% of 80% of the value of the municipal cadastral appraisal.
- Form of Payment:
- 50% during the first calendar quarter (no later than March 31).
- 50% no later than June 30.
- Discount: A 10% discount is applied to the cancellation of 100% in the first quarter.
Ordinary Shareholders Assembly (Corporate Governance)
Corporations must hold an Ordinary Assembly per year according to the Commercial Code (Art. 251 CC).
It is customary to take advantage of this ordinary meeting to present and approve the management reports of the company’s administrative bodies.
Since the General Meeting must also approve the balance of the company (Art. 257 CC), it is usual to do so in the same Ordinary Assembly and within the first months of the year (after the fiscal closing) and to present at the same time the Declaration of the Annual Tax (IR) based on approved accounts.
Final Beneficiary Declaration of companies in 2nd Cycle (Compliance)
Commercial companies must declare and/or update the information related to the Final Beneficiary. Under the instructions established in the “Rules of Operation of the Register of the Final Beneficiary of Commercial Companies” the update of the information can be:
- Ordinary: Every 12 months, stating whether or not there are changes or modifications.
- Extraordinary: When any change occurs that affects the identification of the Final Beneficiaries; The commercial company has 30 days to carry out the update while companies domiciled abroad have 60 days.
Regarding the Declaration of the Final Beneficiary, the competent authority has established cycles to start declaring the information. Currently, the active cycle is for commercial companies whose company name begins with Letter I to Z in the period from 10/19/2021 to 04/18/2022.
Report of Physical Inventory (Fiscal)
Taxpayers whose cost of sales is determined by inventory difference are required to conduct a survey at the end of the authorized taxable fiscal period.
Update of Basic information (Corporate Governance)
Mercantile companies must register their updated information with the competent Mercantile Registry. The Basic Information that each entity must update refers to changes in the shareholding composition, directors or administrators, registered office location, information on the shareholders, and information on the legal representative of the entity.
Renewal of the Board of Directors (Corporate Governance)
Corporate administration is entrusted to a Board of Directors, appointed by the General Meeting or as provided by the corporate charter. The election of the directors will be made from among the same shareholders, for a fixed and determined time, not exceeding ten years, without prejudice to the revocation of the mandate, provided that this agreement is taken at the General Meeting.