Legal Issues to consider when doing business in Guatemala

An Expert's View about Setting up a Business in Guatemala

Posted on: 10 Aug 2012

Issues that U.S. Corporate Counsel Should Consider when Doing Business in Guatemala - NYSBA Article Corporate Counsel Section (2011) - Informational only

CORPORATE COUNSEL SECTION lnside < SOth YEAR V A publication of the Corporate Counsel Section of the hlew York State Bar Association Message from the Chair I am very excited to be continued to lay the groundwork for new and exciting leading the Section this year. changes and we already have much to report. It is a privilege to be able to contribute The Section has grown tremendously to this Section’s over the lastlong 30 tradition of pror-iding quality years and we are striving to find new and innovative benefits ways to continue to to bring value to our membership.its unique member- ship. This For example, in April, r-ear, we conducted the Corporate a ClE/network- Counsel Section celebrates ing event on Alternative Fee Arrangements at no costits 30th Anni\-ersaæ’ and, with to Section members. In March, we offered a scholarshipthat to the Young Lawyers Section Trial Academy (includ- in mind, the Executive Com- mittee ing a travel stipend) to a NYSBA member nominated byis rrorking very hard to create an extraordinary year a member of our Section. We also plan to have severalfor our members. During social/networking events throughout the Spring andthe first Fall at various venues to give you ferr- months of 2077, we have the chance to meet lnside Being an International ln-House Corporate Counsel Has The Option of Investment Arbitration: An Important Part Become a High-Risk Business .........................3 of an Investor’s Legal Arsenal..... ..................29 (Man’in G. Pickholz) (Andreas Heuser and Christian Leisinger) Update on Canadian Transfer Pricing...... ..........7 The International Arbitration System: How the Piece flonah Mavles) Interrelate: International Arbitral Institutions ................32 Personal (Nancy Jurisdiction Thevenin)in Canada: Can U.S. Defendants Be Subject to Suit lvith No Meaningful Contacts? ..............10 International Transactions:An aide memoire to get your (Stephen J. Maddex and Ruba El-Sayegh) dispute resolution clause right!.......... ...........47 Foreign (Claire Investment Morel de Westgaver)in Canada-Is the Door Still Open?......................13 (Shawn C.D. Neylan and Michael Kilby) How to Deal with Pre-Trial Discovery in Continental Europe.............45 Should We Samba, Tango or Mambo? A Primer (Dr. Denis Gebhardt and Stefan Buettner)for Internal Counsel on Getting Started in Latin America.... .............77 Offshore Financing: A Guide for In-House Counsel ..........47 (Mary Rose Brusewitz) (Sidney S. Goldstein) Issues That U.S. Corporate Counsel Shouid Consider SncrroN When EvrNrsDoing Business in Guatemala.............. ..................2I Intellectual Property Issues for In-House Counsel: (Alexander Aizenstatd L.) A Report from the Annuai Meeting..... .........50 One Step Ahead: Selected (Melissa Immigration Y. Yu)Issues for Corporate Counsel ......................26 Corporate Counsel Section Holds Annual Fall Ethics Program.......53 (Sarah Pelud) Member Appreciation Event ......53 Editors: lanice Hnndler and AIIison B. Tomlinson .-s illtI }\IYSBA lssues That U.S. Corporate Counsel Should Consider When Doing Business in Guatemala By Alexander Aizenstatd L. As reported in The New York Times, "Central Amer- translation is provided. However, some documents have ica’s -15 million consumers buy more U.S. products than to be drafted in Spanish, especially ones that require reg- the 1.5 biliion people in India, Indonesia, and Russia com- istration before the local authorities (like real estate trans- bined."1 With Guatemala itself accounting for about one fers and articles of incorporation). In communicating with third of the total population in the region, it is not surpris- others outside of the meeting room, you may get along ing that U.S. companies have an interest in this consumer in English in hotels in the capital and in the main tourist and labor market just a short 2VzItour flight from Miami. sites (Antigua, Atitlan, Tikal, etc.), but apart from these In fact, there is a rich tradition of LJ.S. business interests in areas you will most probably need to speak in Spanish. Cuatemala. The local currency is the quetzalbut dollars are very After spending many years working together with often accepted.2 Deals can be conducted or indexed to foreign counsel on how to protect their clients’legal any foreign currency without restriction. Generally, even interests in Cuatemala and having lived and studied in purely local agreements dealing with large assets, such as the U.S., I can say that the following are some of the most real estate or rental agreements are fixed in or indexed to important issues that corporate counsel should take into the dollar. Local bank accounts can be set up in local cur- consideration when doing business in Guatemala. rency, dollars and in some cases, Euros. There are no re- strictions on conducting business in dollars, nor are there l. Guatemalan Business Culture limits on currency exchange or repatriation. However, Most lawyers doing deals in the country will find there are newly implemented limits on handling cash de- that Cuatemalans are hard-working and business savvy. posits and withdrawals at banks, though note that these Although some meetings can be relaxed, usually business are mainly directed at preventing money laundering.3 meetings are serious affairs. Formal business attire and Newcomers often find it surprising that Guatemala punctuality is expected. In contrast, social events tend City has a modern and business-friendly atmosphere. to be more relaxed and punctuality is not the norm. In Most business deals take place in the capital. The in- business, it is normal to address people by their profes- frastructure, hotels, telecommunications and banking sional titles (i.e. Licenciado/a is used to address Attorneys). industry As generally are sufficiently sophisticated for thein many other Latin American countries, complete purposes of cross-border business. Crime rates are high so names are frequently comprised of a first and middle you should always take precautions.a name and two family names, usually the paternal family name followed by the maternal family name (i.e., Juan ll. Dealing w¡th the Government Carlos L pez Valenzuela). To formally address someone Whether it’s a trademark registration, the recording typically one uses his or her title and only the first of his of a power of attorney, or securing a mortgage over land, or her last names (i.e., LicenciadoL pez). Married women many will business activities require dealing with the gov-use a first name and the prefix " de" followed by their ernment. It is particularly on these aspects that you will husband’s family name (i.e., Monica de L pez). This is need local counsel. Government offices and registries are generally the norm but as always there are exceptions. centralized in the capital. Some documents, and in par- Addressing somebody by their title and their first family ticular those that will be recorded, such as land transfers name is expected for business correspondence. However, and articles of incorporation, are drafted in Spanish on legal documents should include all names. special paper (escriturn pœblica) available only to notaries.s Once you have met someone, in many cases, you In these notarial documents, the original is kept by the may refer to them by their first name. Relationships are notary who may issue certified copies. If confidentiality is very important in Cuatemalan business culture, therefore an issue, keep in mind that notaries are legally required to social conversation usually takes place before or after send a copy of these documents to a registry where they serious business. Particularly within long-term business are available to the public. relationships it is common to get invited to social events Some documents and in particular those that will and to meet or inquire about each other’s family. need to be recorded, including foreign powers of attor- In the context of large deals with foreigners, Eng- ney, are only valid in Guatemala once they have passed lish is usually the language of negotiation; it is also the through a lengthy consular legalization process. It is laneuage in which the final documents are drafted. Only important to note that Guatemala is not a party to the once did I encounter a local bank that was reluctant to Hague Apostille Convention.6 This means that unlike dralt a major deal in English. Local courts will enforce other jurisdictions the legalization process will take some a contract drafted in any language if a certified Spanish time. A few years ago, a foreign in-house counsel for NYSBA lnside I Spring/Summer2011 | Vot. ZS | ruo. I 21 a financial institution called me in order to consult on Tribunal had to file for a temporary tax number on behalf whether a shareholders’meeting could be scheduled to of the company. In many cases, limitations on foreign- take place later that week. I explained that in this case the ers’activities become irrelevant where a local company is proxies had to be notarizedinthe country of execution, incorporated. legalized at the Guatemalan consulate, sent to my office, lV. lncorporat¡ng into a Local Company legalized at the Foreign Relations Ministry, recorded at There are no limitations on foreign ownership orthe General Notarial Registry and at the Commerce Registry. Needless control of local corporate entities. A locally incorporatedto say, the shareholders’meeting had company requires a minimum capital balance of Q’ to be postponed. 5,000.00 (U.S. 9627.00)16 and following a procedure at the Once a request has been submitted at a government Commerce Registry that can take up to a month to com- office or court on any matter it is indispensable to have plete. Some fees and taxes will also be applicable- After an experienced professional ensure that the process runs this, a separate registration Process before the Tax Au- its due course. On one occasion I found out that a client’s thority will be necessary. Flowever, companies can begin request for a permit at the Finance Ministry had been to operate temporarlly before the process is complete’ In delayed because the clerk had left for vacation and the general terms, there are no readily available off the shelf documents were locked in her desk. Although some in- companies. If you happen to find one, always be wary of stitutions have undergone substantial modernization and the previous liabilities it may have acquired in the past. can provide timely results, you should always be pre- pared The most common corporate entity is the sociedndfor substantial delays, holidays or requests for new documents. Even nn nima.It allows for limited liability and unlimitedthe most specialized and experienced practitioners can’t ensure duration. Note that some features of the sociednd an nimnthat a Process will be complete by a set date, so always consider will change in the following two years due to legislativeleaving some time avail- able amendments.lT Once a company has been established cor-for unforeseen delays. porate formalities or fees are minimal, but there are some IIl. Limitations for Foreigners periodic tax documents that should be fiied regularly. In addition to domestic regulations, U.S. companies Many business activities carried out by foreign are granted the protections afforded by the U.S.-Domini- companies do not require specific registration as a foreign can Republic-Central America Free Trade Agreement company nor be incorporated as a local comPany. Some of (DR-CAFTA), in effect for Guatemala since July of 2006.7 these activities include acquiring title o’r’er land, register- The agreement contains the usual protections regard- ing trademarks, and takingpart in litigation or lending ing national treatment, compensation for expropriation, In my experience the registration of a foreign most favored nation, minimum international standards company is quite uncommon and generaily related to for- and others.s So far only one case has been filed against eign companies invohted in government procurement’ In Guatemalaby a U.S. company.e The arbitral award has cases where registration as a foreign comPany is required, not yet been issued. the process can take up to a month and requires the sub- In general terms, foreigners have the same rights as scription of a US$50,000 bond.le nationals when it comes to business.lOIt is only if you are V. lntellectual ProPerty involved in certain specific activities that you might find Guatemala has relativelv modern IP legislation and is that a distinction is relevant. Foreign investment requires no party to several international agreements, including-theregistration and there are no limitations for repatria- Patent Cooperation Treatv20 the Rome Convention,2l the tion of earnings. Most limitations for foreigners involve Paris Convention for the Protection of Industrial Prop- the prohibition on owning certain lands, including some government erty,22 and TRIPS.23 Additional protection for U.S. compa-lands;11 land located in the national borders, Ænd nies is afforded by DR-CAFTA: the IP provisions of thisi n the shores of navigable rivers and 1akes.12 Activi- treaty have been described by the U.S. Advisory Com- ties in the forestry industry and other regulated sectors mittee for Trade Policy and Negotiations as "the best that like banking and insurance might also present some have been negotiated in any IJ.S. trade agreemenf."24 restrictions.l3 In addition, foreign institutions are barred from receiving inheritances.l4 Other relevant limitations AIl IP matters are handled by the Intellectual Proper- include the protection of Guatemalan workers: therefore, ty Registry. The Registry received about 7,400 trademark if you are setting up shop in the territory consider that applications durin g 2009, more than two-thirds of which 90o/o of all employees must be nationals and the sum of were owned by foreign companies.2s The trademark reg- their salaries should account for at least B5o/o of the total istration process typically takes between 10 to 12 months payroll.1s and grants protection for 10 years, at which time the pro- tection is renewable.26 Protection dates back to the filing It is important to consider that some limitations might be date. Registration, defense or opposition can be handledthe result of practice rather than law For ex- ample, by an attorney by means of a proxy in Guatemala. A pat-in one case the delivery of a money judgment to a foreign client was delayed for a few days because the 22 NYSBA tnside I Spring/Summer 2011 | Vol. Zg I l’,1o. t ent for an invention is protected for 20 years and takes Professionals may, however, elect to pay 5% of gross in- about 2.5 to 3 years to obtain.27 come as an Capital gains are also taxed. Vl. Labor Some foreign industries like transportation, film Labor production companies, insurance and news agenciesissues are regulated by a specific set of rules outside of have specific taxation brackets.a2 There are also manythe scope of general contract law. There is no at-n’ill employment and industry-specific taxes, for example, on the distribution ofindividual labor disputes cannot be submitted cement, petroleum and alcoholic beverages.a3 A "Soiidar-to general arbitration. Guatemala recognizes ity" Tax may also be applicable on commercial activities the creation of labor unions and provides protection for that generate profits over 4"/" of gross income. This tax is the negotiation of collective bargaining agreements. How- e\-er, about 0.25y. of the larger between assets or income, butit is unusual for small and medium-sized companies can in some cases be deducted from income tax contribu- to har.e a union. tions.aa A value added tax (VAT) is applicable on most Minimum wage is fixed by the government on a year- sales, including land transfers and is equivalent to 72o/o ly basis. For 2011 it has been set to Q.63.70 (U.S. $8.01) a of the sale There is an annual tax for the circula- day for all sectors, except for the export and confection tion of vehicles which is 7"/" to 0.7"/’ of the value of the industry r,r,.hich has a lower salary of Q.59.43 (U.S. fi7.47) vehicle, depending on the year model.a6 Annual property a day.28 The usual work week consists of 5 or 6 working taxes are about 0.9"/" of the registered value, but most days,8 hours a day, and no more than 44 hours a week.2e properties have a commercial value that far exceeds their Overtime is paid at a 50"/o increase ovet the normal registered value.aZ hourly rate.3O Fifteen days vacation leave is mandated.3l Central American regional agreements will also offer In addition, the Guatemalan calendar year has about 12 holidays.32 Most advantages for products made in Guatemala. Addition-recently Congress approved a law stat- ally, there are several operating Free Trade Zones (FTZ) tn ing that if a holiday lands on a Tuesday or Wednesday the employee which companies are exempted from paying import andis also entitled to take off the previous Monday. export Many apparel shops have taken advan- If the holiday lands on a Thurcday, employees take off Friday tage of this scheme in order to import raw materials andin order to enjoy an extended weekend.33 export manufactured goods into the ll.S.FTZ’s can also Employees are entitled to 74 monthly wage payments be advantageous for other activities, like call centers and ayear, corresponding to 1.2 monthly salary payments plus factories. A few years ago I even advised a foreign client a Christmas3a and mid-year bonus.35 Employees are also on how to set up a refrigerated fruit export business in an entitled to a minimum performance bonus36 and sociai FTZ. security, among other benefits.3T In case an employee is fired without cause, he or she is entitled to receive sever- Vlll. Dispute Resolution ance pay equal to one monthly salary for every year of As a general rule I advise my clients to avoid litiga- employment, plus 30o/o as economic benefit.3s An employ- tion in Cuatemala. A judicial procedure can often be a ee can be fired without severance pay only if it is with lengthy and costly affan. A regular contract dispute takes cause or during the first two months of the employment. between 4 and 6 years in order to reach a final judgment, sometimes even more. Bankruptcy procedures can take In general, it is very important to maintain well pre- pared written agreements with all employees; otherwise decades. If you do have to file a suit, the courts in the city are more accustomed and equipped to deal with complex the courts will apply a presumption in favor of what is matters stated by than those in the provinces. If you need to servethe employee.3e Counsel for a U.S. company should also be aware process outside of the country, it will entail a prolongedthat even if the company has an agreement with letter a rogatory procedure.local independent contractor or dis- tributor stating that it is not a labor agreement, if it meets In general terms, Cuatemalan law allows for the par- the general conditions of a labor agreement, a local labor ties to establish the courts of another country or arbitra- court might consider it an effort to conceal an underlying tion as the forum for dispute resolution. In many cases, employment relationship and enforce it as such. the laws of another jurisdiction can also be set as the law Vll. of the contract. Contracts dealing with large sums willTaxes often include an arbitration clause. Our arbitration law is Taxes are a complex and industry-specific matter. based on the UNCITRAL model For international Cuatemala does not have any double taxation agreements deals it is common to select Miami or New York as the with the U.S. The fiscal year begins on ]anuary 1st and seat of arbitration. The American Arbitration Association ends on December 31st. Income tax is charged on earn- (AAA) or the International Chamber of Commerce (ICC) ings from national sources only. When registering before rules are common for these types of deals. There are a few the National Tax Authority companies can choose as to national arbitration centers as well, but they handle only whether they pay 5"/. of gross income or 37’/" of taxable a few cases a trear and are subject to the delays that might income.40 Personal income tax for individuals depends on arise from legal action filed before the national courts. a bracket that goes from 75"h to 37"/o of taxable income. NYSBA lnside I Spring/Summer 201 1 | Vol. Zg I wo. t 23 2. The currency exchange rate at thjs moment is about US$1’00 Itisimportanttorememberthateveniftheforumfor = Q.8.00, Uut nuctuat?s constan Ily’ See the Bank of Guatemala’ ) (in dispute ,urtlrrtion is set outside of Guatemala’ the final http:/ /***’u]ig""i tu’g’ (last visited / Jan’ 20’ 2011 "u`aio Spanish)’ ¡rig^"rrt will eventually have to be enforced by local courts. Even though GuÆtemula has been apatty to the 3.MonetaryBoardResolution,No.JM-108-2010(2010)’I:tttp // N.Y. Convention s"ince www.sib.goU giœ"tt njan’ 27’2011) (In Spanish) (Regulatio IgB4, it has been my expefience "isited applicablJ to Ætitt ransactions over US$3’000)’ that the enforcement of foreign awards can sometimes be 4. See, e.g.,International Crisis Group’ Latin America Report No’ 33’ a substantially lengthy o’deJ’s0 Although some.awards Guatemaln: Squ’eezed betrueen Criml and Impunity (2010)’ httP: / / can be enforced *ithi’l one or two years and orders for www.crisisgrouP’org’ attachments obtained over assets, I know of at least one 5. All attorneys in Guatemala are also notaries’ caseinwhereenforcementofanarbitralawardrendered 6. Hague Convention Abolishing the Requirement of Legalization ior in the U.S. has taken over nine years’s1 Therefore’ when fo.:ulg.t Public Documents’ Oct’ 5’ 1961’ the deal is made you should take care to ensure con- 7. The Dominican Republic-Central America-United States Free tractual provisions give you an advantage and help you Trade Rgr""*"r,t (bn-caEra)’ Iuly L’2006’ http:/ /www’ustr’gor- reach a negotia*¿ ,""ur"ment if a future dispute should (last visited Feb’ 2,2011)’ arise. B. See id. Section 10’ g. Railrond Dertelopntent Corpotntion a’ Reptœlic of Guntemnla’ ICSID lX. Local Counsel Case No. AF{B/ 07 / 23 (2007-2008)’ }rttpt ¡ / icÆid’lorldbank’org (last One of the most important decisions you will make is visited Feb.l,i ril tritt case has not yet reached a decision on the selecting merits.).loca1 counsel’ Al*uyt have a written agreement and be clear about your expectations from the begin- 10. Foreign Investment Law’ Decree No’ 9-98’ S 3 (1998)’ ning. It is essential io cleariy define the services that are 11. Law for the Adjudication’ Holding and Use of Land in PetØn’ covered, otn"r*ire you mlglltbe liable for additional fees Decree No. riÆ:qo( 1996) and Supplementary Titles Law’ Decree No.49-79 (7979). that are contained in a statute’s2 Be wary that some Prac- 72. Const. SS122-123. titioners have rr"ry relaxed stand’ards regarding conflicts of interest. National ethics regulations afe not nearly as 13. Sec e.q.Const. S 126 (forestry),Insurance Activities Law’ Decree detailedorstrictastheABAModelRulesonProfessional ". t’i t o izØrol (ir"tttutt"); Banking and Financial croups Lu*, D".r"e o. 19-20 02, g 6 (2002) (Banks)’ Conduct and ethics boards are not as effective’ 14. Civil Code, Law-Decree No. 106, S 926 (5). (1973) A few years Most lawyers will work with either hourly fees or ip",iti"ned the Constitutional Court to declare that this "f. ld that it was llmitation was discriminatory; the Court however he fixedfates,andindollars.Itisalwaysadvisabletoobtain a distinction withinihe po*Æ"o f Congress’ See Constitutional anestimateoftotalbillablehoursinadvance.Youwill Court. General Ur-r.o.rtit"tionality. N nlntnn Al exnn der Aizenstat d’ findthatmostlawfirmsarelocatedinGuatemalaCity.It pii" No. 534-2007 ’Judgment of April 10’ 2008’ will be harder iÆf i"a qualified E’nglish speaking counsel 15. Labor Code, Decree No’ 1441’ S 13 (1961)’ in the Provinces. 16. This is equivalent to US$627’00 as of 20 january 2071" See the Banl ed The legal market is smal1 and law firms range from of Guatemala, http:/ /www’banguat’gob’gi/cambio (last visit sole practilioners to firms with 30 lawyers’ There are Jan 20,2011) (in SPanish)’ ’ no 17. Extinction of Domain Law, Decree No’ 55-2010’ SS 71-74 (201’0) local branches of u.s. firms. Most attorneys handle a wide affay of fields’ There is no high degree of spe- 18, Commerce Code, Decree No’ 2-70’ 5220 (1970)’ cialization, except in areas like Family or Criminal Law’ 19. rd. ss227- 215(5). Many practitioners are also litigators’ There are many 20. Patent Cooperation Treaty, Oct’ 14’ 2006’ qrruœfl"a attorneys itt-9y1t"Ta1a accustomed to pro- 21,. Tnternational Convention for the Protection of Performers/ n’ tecting the lniere’sts of U’S’ clients’ although only a few Producers of f ttono g;u-’, u’-ta Broad’castin g Ot ganizations’ J a with degrees from abroad’ and only a handful have been 74,1977. admitted to a U.S’ State Bar’ With this in mind’ with 72. Paris Convention for the Protection of Industrial Property’ Aug’ - some diligent searchingz 1rou are sure to find a partner 1998. in Guatemala that will assist you with a high degree of LJ, The Agreement on Trade Related Aspects of Intellectual Properh efficiencY and integritY’ Rights administered ly the World Trade Organization’1994’ 24. Advisory Committee for Trade Policy and Negotiations’ Report By following these recommendations and taking to the President, the Congress’ and the United States Trade some time to urÆerstandt he unique characteristics of Representative on the U’5’ Central America Free Trade Agreeme Guatemala’s culture and regulati n’ yoY will be able to ii b+1, http://www’ustr’gov (last visited Feb’ 1’ 2011)’ successfuliyrepresentyourclient,slegalinterestswhen 75. See generally, Intellectual Property Registry’ http:/ /www’rpi’got h)’ doing business in the ’iland of eternal spring’" [as? rrtlteÆ] an. 20, 2011) (in Spanis 26. IndustrialPropertyLaw,DecreeNo’57-2000’S31(2000)’ Endnotes 27. Id. s126. l.LionelBeehner,QSA:TheCAFTADebate’N’Y’Times’JulyB’2005’ 28. Presidential Accord No’ 388-2010 (2010)’ http:/ / ;;;æ;es cg1 / / international / slot3_071805.html{r 29. Const. (This data also included the Dominican Republic)’ $ 102(g)’ NYSBA tnside I SPring/Summer 2011 I vot. zg I Nt 24 30. Labor Code, Decree No. 1441, S 121 (1961). 31. rd. s 130. 32. Id. S 727. (|anuary 1st [New Year]; Holy Thursday, Friday and Inside (the Saturdav CorporatefEaster]; May 1st [Labor Day]; ]une 30th lArmed Forces Dayl; September 1Sth [Independence Day]; October 20th Counsel Newsletter) [Remembrance of the Revolution]; November 1st is[All Saints Duy]; middar. December 24th ,25th and 31st; and the local patron’s day in each province). also available online Promotion of Internal Tourism Law, Decree No.42-2010, S 2 (2010). a! -E- Larv thai Regulates the Christmas Bonus, Decree No. 76-78 (L978). fu Nswyo.RK _tr:!. -A¡nual Bonus for Employees in the Public and Private Sector Law l"Bono Catorce"), Decree No,42-92 (1992). lnside {Corpqrate Coursel New5letter} 36. Performance Bonus Law, Decree No. 37-2001 (2001). About th¡s publi tion J¡ide fcorporaie Cgunsel Newsleli rl prolides updat s on Sect¡Dn sctirilies, rece¡tcases. and adides ab0!1 cutrenl rssues. Toptca otpast ad¡cles includs ehi4, pti9lege. corpor¿le 37. Organic Law of the Guatemalan Institute of Social Security, Decree dmiæel il:bility and inlemal rn! sligallons. Fdil d by Aili6on Trmlinson, Esq. and Jan¡ceHandler, Esq J sEeis pub¡ished brth Comorate C0unsel Section aæd dist¡buted to \o.295 (7946). S dion lJembers free ofcharge læs;de is published as s benef¡l for fiemberc oflhe Canorate C0unsel Seciion and is 38. Labor Code, Decree No. 1441, captrighled bylhe I’lew Y¡rk Slale BarAssociition The copiing. reselling. dupli tanSS 82, 90 (7961). (Economic benefits transfedng, reproducing. rcusjng. reta¡ning or repdntng ollh¡s publicslion is slidij pr0hibbd w¡ftout pemissron. l{ewYorkStateBarAssoriBljonAllrightsreseftedlgSN0¡360150lpriæi)lSSli1S3]85q7 are understood as anything provided to the employee in addition {¡nline} to his or her salary, such as parking, meals, insurance and others. Lif ilr:i: tliu :t;rl:r :i11rir9:iuiit t:!ii! : t1¡iit-::-r..l.1Lnt r;i.:;1.:ti!ti rii:..t{: l trir.rl Urrless lseLt¡¡ mefrbers onlylit is otherwise agreed, benefits are fixed at30’/" of salary.). 39. lns¡de the Current lsgue Past lgguesId. s 30. lMnter 2t1O) {Strtie Me&rs Wy} 40. spec¡d Eaplotme¡t Me PleÆsec llck the issue dale for each puc tr¡to¡ b etcwIncome Tax Law, Decree No.26-92, SS 44, 72 (1992). ta open the PDFile ’{9:Jtse tf !ryrllq 47. td. s 43. A kzsn h¡tortmt EmdoyllHl Law 42. Id. ss 34-36. Ce*mtuns tor h,ler# Csrns(Jce J Greenœald) 43. See, e.g., Specific Tax on ittli. the Distribution of Cement Law, Decree rjrlMl*arf¡idilllil tr4lj]rllrL1ryirr iRicha¡d A Le?ifr) No. 79-2000 (2000); Tax on Distribution of Distilled Alcoholic Mdetre Lsr¡Ø Where Ysu Wsrk (James Beverages R. Redekerland other Distilled Beverages Law, Decree No,21-04 Q009; Specific Tax on Distribution of Isotonic Carbonated or Sports Beverages, Juices and Nectars, Yoghurts, and Concentrated Go to www.nysba.orgl or Powdered Preparations for the Production of Beverages or Natural Bottled Water Law, Decree No. 09-2002 (2002); and Tax on lnside to access: Distribution of Law Petroleum and Fuels Derived from Petroleum Law, Decree No. 38-92 (2002). 44. Solidarity Tax Law, Decree No. 73-2008 (2008). Past lssues (2000-present) of 45. Income Tax Law, Decree No.27-92, S 10 (1992). lnside* 46. Tax on Circulation of Terrestrial, Maritime or Aerial Vehicles Law, Decree No. 70-94, SS 10-11 (1994). lnside Searchable lndex 47. Sole Tax on Immovable Assets Law, Decree No. 15-98, S 11 (1998). (2 000-p resent) 48. Free tade Zones’Law, Decree No. 65-89 (1989). 49. Arbitration Law, Decree No. 67-95 (1995). Searchable articles f rom lnside 50. New York Convention on the Recognition and Enforcement of that include lin ks to cites Foreign Arbitral Awards, June 19,1984. 51. See North American Energy Seraices a. Generadors ElØctrica del Norte, and statutes. This service is Ltda. Constitutional Court. File No. 877-2003. Judgment of August provided by Loislaw and is 71,2003. 52. Schedule of Fees an exclusive Section memberfor Attorneys, Arbitrators, Solicitors, Powers of Attorney, Experts, Administrators and Depositaries, Decree No. 111-96 (1996) and Notarial Code, Decree No. benef it*314, Title XV (1946). *You Alexander Aizenstatd must be a Corporate Counselis a practicing attorney in Guatemala with a Master’s degree from Yale Law Section member and logged in to School. He has also been admitted for the practice of access. Need password assistance? Visit law in the State of New York. He is a former fellow our Web site at www.nysba.orglpwhelp. at the Max Planck Institute for International Law in Germany and teaches International Investment Law For questions or log-in help, call (518) at Universidad Rafael Landivar. Email: naiman.aizen- 463-3200. The foregoing should not be relied on as legal advice. Insightful comments by Ilona Roze, Esq., and Rebecca Engel, Esq. are acknowledged by the author. www.nysba. orgllnside NYSBA tnside I Spring/Summer 2011 | Vol. Zg I lrlo. I 25
Posted: 10 August 2012