The Congress of the Republic has approved Decree 31-2024, the Framework Law for the Integration of the Primary and Agricultural Sector. This innovative legislation consolidates the tax collection framework for the primary and agricultural sectors into a single legal text. The initiative aims to address economic distortions in the tax chain caused by a lack of regulation in commercializing primary and livestock products. Notably, this law does not apply to end sellers of these products. 

Key Objectives of the Law: 

  • Tax Simplification: Creation of special regimes tailored to the needs of each sector. 
  • Economic Inclusion: Integration of historically overlooked actors, such as agricultural, livestock, aquaculture, apiculture producers, and artisans, into the national economy. 
  • Sustainable Development: Promotion of environmentally responsible practices. 
  • Economic Strengthening: Boosting competitiveness and social development at local and national levels. 

New Special Taxation Regimes: 

  1. Primary Regime:
  • This category applies to individuals or legal entities with annual gross sales of up to 3,500 non-agricultural sector minimum wages (excluding bonus incentives). 
  • It covers how agricultural and artisanal products for local markets or collection centers are produced and commercialized. 
  • A definitive 1.5% tax on gross sales; exporters will pay 2%. 
  • Voluntary registration with simplified requirements is permitted. 
  1. Livestock Regime:
  • The second category describes how livestock, aquaculture, and apiculture output are produced and commercialized. 
  • Imposes a general tax of 1.5% on gross sales, except for bovine product intermediaries, who will pay 10% on profits. 
  • Exporters will pay 2% on gross sales for live products. 
  • Pig farmers, poultry producers, and industrial fisheries are excluded since they are regulated under the VAT regime. 

Additional Benefits and Tax Regularization: 

  • Allows regularization of undeclared income through a sworn patrimonial declaration with a single tax of 5% on omitted income or inventories, provided no supporting documents exist. 
  • Introduces key amendments to the Value Added Tax Law (Decree 27-92), the Tax Update Law (Decree 10-2012), and the Tax Code (Decree 6-91). 

Implementation: 

The law will take effect four months after its publication in the Diario de Centro América. It is important to note that the law must complete all legislative stages before its enactment and publication. 

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