Tax collection reflecting economic reality

February 18, 2022

This February 16, 2008, the “La Hora” website reported on tax collection in Guatemala. Let’s see:

1. Tax collection goal in 2022

This website mentions that the tax collection goal amounts to Q75,999.6 billion for 2022, becoming the highest figure in the last 10 years, according to the Agreement for the Compliance of the tax collection goals between the Minfin (Ministerio de Finanzas Públicas – Ministry of Public Finances) and the SAT (Superintendencia de Administración Tributaria – Superintendence of Tax Administration. 

2. Calculation of the goal

According to Decree 37-2016, Article 23 bis of Decree No. 1-98 of the Congress of the Republic, Organic Law of the SAT, the collection goals must consider the following conditions and inputs:  

  • Technical forecast of expected tax collection.  
  • Additional tax collection goals due to the reduction of tax non-compliance. 

3. Collection in 2021

It is recalled that the collection had an increase in 2021 due to the payment of taxes from the sale of Tigo Guatemala to Millicom Internacional Cellular, S.A. The target in 2021 was Q63,468.9 million, under the following variables:  

  • The estimated closing tax collection for the fiscal year 2018.  
  • The macroeconomic scenario for 2019, presented by Banguat on May 24, 2018, to the Technical Commission of Public Finances, in Act 07-2018.  
  • The General Budget of Revenues and Expenditures of the State for the fiscal year 2019, Congressional Decree Number 25-2018. 

According to the SAT, the collection of 2021 reached Q77,627.1 million, for a surplus of Q14,158.2 million and meeting 122.3% of the goal that was maintained in 2019, 2020, and 2021.  

4. Taxes with the highest contribution

The taxes that contributed the most in 2021 were external. Likewise, import VAT revenues exceeded the goal by 28%, influenced by the increase in international prices, main fuels, and higher freight costs. 

5. Challenges – Domestic and Internacional

According to SAT, the challenges in the domestic and international context concerning tax collection projections are the following:  

  • Macroeconomic and financial stability.   
  • Extension of effects related to the COVID-19 pandemic.  
  • Stability of raw material prices.  
  • Economic Policy Evaluation.  
  • Updating of legislation.. 
Source: La 17/02/22