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  November 2, 2012 - Guatemala

Provisional Suspension Section 180,4 Decree 10-2012

On Wednesday, October 3^rd.,  it was published in the Official Gazette the provisional suspension issued by the Constitutional Court of  Section 180, 4.,  of  Decree 10-2012 which abrogated the withholding exemption contained in Section 12 of Decree 80-2000.  Thus, the  exemption of the withholding obligation  for payment of interest to first order financial institutions or banks, recovers full force until the Constitutional Court issues the final ruling settling the case. From now on,    Guatemalan taxpayers who pay interests to non-domiciled  first order financial institutions will not have to withhold any tax.  It is extremely unlikely that if the Court has issued a provisional suspension restoring the exemption, the final ruling will be revert such criterion.