Tax in Guatemala

Who is the tax authority?

Superintendencia de Administracion Tributaria (SAT) is Guatemala's autonomous tax and customs authority. SAT sits under the Ministerio de Finanzas Publicas.

SAT runs four main divisions: Intendencia de Recaudacion y Gestion, Intendencia de Aduanas, Intendencia de Atencion al Contribuyente, and a dedicated Grandes Contribuyentes office. Filings flow through the Declaraguate and Asisteweb portals at portal.sat.gob.gt.

The core legal framework rests on three instruments. Decreto 10-2012 (Ley de Actualizacion Tributaria) covers income tax. Decreto 27-92 (Ley del IVA) covers indirect tax. Decreto 6-91 (Codigo Tributario) sets the procedural rules. Guatemala is a member of SICA and the Central American Common Market (CACM).

What is the tax year and when are returns due?

Guatemala's tax year is the calendar year (1 January to 31 December). Employment income tax is withheld monthly by employers — most salaried workers file no annual return.

Quarterly advance payments apply for taxpayers under the optativo regime. IVA returns are filed monthly, staggered between the 10th and 25th of the following month. Pequeno Contribuyente filers use a quarterly simplified schedule. The Solidarity Tax (ISO) is paid quarterly — January, April (or July for some), September, and December.

Who counts as a Guatemalan tax resident?

An individual is a Guatemalan tax resident under Article 6 of Decreto 10-2012 if they are physically present in Guatemala for more than 183 days (continuous or with interruptions) in any 12-month period, or if they maintain their main centre of business or economic interests in Guatemala.

Guatemala uses a territorial-source taxation system. Both residents and non-residents pay tax only on Guatemalan-source income. This distinguishes Guatemala from worldwide-income jurisdictions like the US, UK, and Australia.

Foreign nationals on long-term assignments often meet the 183-day test from year one — but only income earned from Guatemalan sources falls within scope.

What are the personal income tax rates?

Guatemala runs two parallel PIT regimes. The regime that applies depends on how a person earns their income.

Capital income is taxed separately: dividends at 5% (final withholding), interest at 10%, royalties at 10%. Capital gains face a 10% flat rate.

Mandatory IGSS social security contributions also apply: 4.83% employee-side and 12.67% employer-side. These are separate from ISR.

How does corporate tax work?

Corporate ISR in Guatemala mirrors the personal lucrative-activity framework. Every company chooses one of two regimes each year, and the choice is binding for that year.

The Solidarity Tax (ISO), under Decreto 73-2008, adds a 1% quarterly minimum tax on net assets or gross quarterly income — whichever is higher. ISO is creditable against ISR, so it operates as an effective floor rather than a separate cost.

Withholding on non-resident dividends is 5% (treaty rates apply). Royalties and technical services paid abroad face 15% withholding by default. Interest withholding ranges from 10% to 15% depending on counterparty class.

Maquila (Decreto 29-89) and Free Zone enterprises receive tax holidays. Pillar Two has not been transposed into Guatemalan law. Group taxation is not available.

What about IVA (VAT) and other indirect taxes?

IVA is Guatemala's value-added tax under Decreto 27-92. The standard rate is 12%.

Registration is mandatory regardless of turnover for standard IVA-registered businesses. The Pequeno Contribuyente (small-taxpayer) regime covers businesses with annual gross income under GTQ 150,000 — a 5% simplified rate replaces both IVA and ISR for those in scope.

Factura Electronica en Linea (FEL) has been mandatory for taxpayers above progressive thresholds since 2019, with full rollout through 2024-2025. FEL-issued electronic invoices are required for IVA-input-credit claims. Excise duty applies on alcohol, tobacco, and fuels. Customs IVA on imports is collected at the border by SAT Customs.

How are cryptoassets taxed?

Guatemala has not enacted a dedicated cryptoasset tax law. Banco de Guatemala has issued advisory communications stating that cryptoassets are not legal tender.

CAFTA-DR: trade agreement, not a tax treaty

Guatemala joined CAFTA-DR (the Central American-Dominican Republic Free Trade Agreement with the United States) in 2006. CAFTA-DR reduces or eliminates tariffs on goods traded between Guatemala and the US — it is a trade agreement, not an income-tax treaty.

What is the treaty network?

Guatemala has approximately one active bilateral income-tax treaty — with Mexico. This is among the smallest DTA networks in Latin America. Guatemala has not signed the OECD Multilateral Instrument (MLI) as of 2026. The standard statute of limitations is 4 years from the filing deadline, extended for fraud or non-filing.

Guatemala participates in the OECD Common Reporting Standard (CRS) framework via successive legislative amendments. This means foreign-held accounts by Guatemalan residents can be automatically reported. Guatemala has not ratified the MLI.

Where does Guatemala sit in the Central American cohort?

Guatemala anchors the Central American cohort as the region's largest economy by population (~18 million) and GDP. The CAFTA-DR region splits into five distinct tax postures:

Currency framework

Guatemala uses the Guatemalan Quetzal (GTQ). The Quetzal operates on a managed float administered by Banco de Guatemala — the central bank intervenes periodically to smooth volatility, and the GTQ has maintained relative stability against the US Dollar.

Tax obligations in Guatemala are denominated in GTQ. Contracts in foreign currency are permissible, but ISR and IVA calculations use GTQ values at the Banco de Guatemala reference exchange rate. The US dollar is widely accepted in commerce but is not legal tender.

Guatemala's population context

Guatemala has the largest population in Central America — approximately 18 million people. This scale gives Guatemala's economy a depth that smaller Central American peers lack, but it also creates a significant informal sector.

Common pitfalls and penalties

Foreign companies and individuals routinely encounter a set of recurring compliance traps in Guatemala:

When should you talk to a Guatemala tax pro?

Some situations are straightforward once the correct regime is elected. Others are more complex:

• Your business is choosing between Sobre Utilidades and Sobre Ingresos for the coming year
• You have cross-border payments (royalties, technical services, dividends) without treaty protection
• You are setting up under a Maquila or Free Zone framework
• You received a SAT audit notice or query under Decreto 6-91
• You are moving operations in or out of Guatemala and need to confirm territorial-source classification
• You manage transfer-pricing documentation under Decreto 10-2012 Article 51
• You have questions about FEL compliance and IVA-credit eligibility

You can find vetted Guatemala practitioners through the directory below.

This page is general information. It is not personal guidance for your specific situation. Tax rules change. Always confirm current figures with a licensed Guatemala Contador Publico y Auditor (CPA) before filing.