Benefits and scope of Decree 29-89 (Maquila Law)

After the reform introduced by Decree 19-2016, Decree 29-89 (the Export and Maquila Activity Promotion and Development Act) benefits only (i) the apparel and textile industry - Section XI of the Harmonized System, chapters 50-63 - and (ii) the export of ICT services: call and contact centers, software development and digital content supplied to non-residents. The package: full exemption from income tax (ISR) for 10 years and suspension of or exemption from import duties (DAI) and VAT on imports of machinery, raw materials and production inputs. The scope comes from the text of Decree 19-2016; the detail of the package comes from CentralAmericaData and from an adviser (concilia.com.gt) and has to be verified against the text. For as long as the income tax exemption lasts, the beneficiary also pays no Solidarity Tax (ISO) (Article 4(d), Decree 73-2008). The register of qualified companies is said to be kept by MINECO (DACE), to be confirmed.

The research is written in English; quoted figures, source names and the titles of legal instruments stay in the language their source published them in.