The Superintendency of Tax Administration (SAT) was created in 1997, with the purpose of modernizing the tax administration.
SAT is a decentralized and autonomous public sector entity, with jurisdiction throughout Guatemala, which seeks to facilitate taxpayers’ compliance with their tax obligations through a series of actions.
As such, SAT has attributions and powers conferred by law, in order to fulfill its mission. The purpose of this article is to disclose the main powers of the Tax Administration.
Attributions and Powers of the SAT
According to Article 98 of the Tax Code of Guatemala, approved by Decree No. 6-91 and amendments, the powers of the Tax Administration in order to verify the correct compliance with tax regulations are as follows:
- To require information from natural or legal persons, and in case of being responsible may request the elements that constitute the taxable base in order to a correct determination.
- To require the payment of taxes, interest and fines.
- Verify compliance with formal obligations, such as tax returns.
- To sanction taxpayers or responsible parties, in accordance with the Tax Code and their infractions.
- To organize the collection system.
- To carry out the appraisals of goods and rights in case the taxpayer, in advance, does not provide information on their value.
- To request collaboration from other government agencies.
- Verify inventories of goods and merchandise.
Other attributions or powers of the SAT
According to article 98 A, of the Tax Code, the Administration may also have the following powers or attributions:
- Establishment of an electronic address or electronic mailbox, by mutual agreement with the taxpayer.
- Establish certain procedures for the conservation of books, invoices, among others.
- To exchange tax information, when there is an agreement for this, with other Tax Administrations. Provided that it is only for purposes related to tax auditing and control.
- Enter into mutual cooperation agreements with other Tax Administrations.
- Update the RTU of the taxpayer, ex officio.