Reasonable tax rates and safety of assets are two global concerns of anyone on his feet, be it a person or a business of any caliber. Herewith, the more confidentiality is the better, and the best variant is where you can find it all in one place. Guatemala is a jurisdiction attractive from many perspectives.
No Tax on Offshore Profits
Taxes are rather high in Guatemala. But the system of taxation is based on the territoriality principle, which means that none offshore income is chargeable with tax in Guatemala. Companies are subject to income tax only on their Guatemala source income. This rule equally refers to capital gains and distribution of dividends.
Regular monthly, quarterly and annual financial reporting is to be submitted to the local tax authorities. At the same time, offshore bank accounts of Guatemalan companies are not subject to local reporting.
A type of corporation you can register in Guatemala is “Sociedad Anonima”, having the abbreviation S.A. in the end of its name. The owners are not registered in any public register and are not part of information available to public.
The corporation may issue bearer shares.
Confidential and Safe Banking
The legal system of Guatemala is based on the civil law, which actually means that statute and legislative acts are the only source of law for judiciary decisions.
In at attempt to escape from the OECD black list in May 2012 Guatemala signed TIEA agreements with Denmark, Greenland, Finland, Iceland, Faroe Islands, Norway, Sweden. More agreements are expected to be signed by the end of 2012 (to make it the required minimum 12 agreements). Additionally, Guatemala has mutual legal assistance treaties with several Central American nations. However, none of the treaties between Guatemala and any other country allow for automatic exchange of information on the ownership of the company and its financial activity. No fishing expeditions are allowed.
Guatemala has no such customs as secuestration order (secuestro), or similar instruments, by means of which the uncharitable people would be able to segregate and freeze your funds in the bank on the basis of mere allegations.
Guatemala does not honor civil judgments or fraudulent conveyance actions from civil judges in other countries. Same as it does not cooperate on collection of judgments from other countries.
The Central Bank of Guatemala (Banguat) regulates the activity of the country’s banking system, which is maintained by several largest local banks, having branches all over the region of Central America. Many world name foreign banks are also represented in Guatemala.
Spanish is the official language, but English is widely spoken by lawyers and bank personnel. Internet-banking in English is available, same as a wide range of popular bank products required by any business.
All in one, Guatemala offers very interesting opportunities to assist business owners expand to the growing global marketplace.
Feel free to contact us for assistance.