Guatemala's tax system includes corporate income tax, value-added tax (VAT), withholding tax, municipal taxes, and solidarity tax for certain industries. Businesses operating in Guatemala should ensure compliance with these tax obligations to avoid penalties and contribute to the country's economic development. Consulting with a tax professional and referring to the official website of the Superintendencia de Administración Tributaria (SAT) will provide businesses with the most accurate and up-to-date information regarding tax regulations and requirements in Guatemala.
Corporate Income Tax:
Guatemala imposes a corporate income tax on the profits earned by companies operating within its jurisdiction. The corporate income tax rate in Guatemala is a flat rate of 25%. This rate applies to both resident and non-resident companies engaged in commercial, industrial, or professional activities in the country.
Types of Business Taxes in Guatemala:
- Value Added Tax (VAT): Guatemala operates a VAT system, known as Impuesto al Valor Agregado (IVA). The standard VAT rate in Guatemala is 12%. However, certain goods and services may be exempt or subject to reduced rates. It is important for businesses to comply with VAT registration and reporting requirements.
- Income Tax Advance Payment (ISR Anticipos): In addition to the annual corporate income tax return, companies in Guatemala are required to make quarterly advance payments of income tax based on estimated profits. The amount of the advance payments is calculated according to specific rules and must be made on the 31st of each quarter.
- Withholding Tax: Guatemala imposes withholding tax on various types of payments made to non-residents, including dividends, interest, royalties, and technical services. The withholding tax rates vary depending on the nature of the payment and can range from 5% to 31%.
- Municipal Taxes: Municipalities in Guatemala have the authority to levy local taxes on businesses operating within their jurisdiction. These taxes may include local business taxes, advertisement taxes, and other municipal fees. The rates and requirements may vary depending on the specific municipality.
- Solidarity Tax (Impuesto Solidario): Certain industries in Guatemala, such as telecommunications and banking, are subject to a solidarity tax. The solidarity tax rate is a percentage of the gross income and varies depending on the industry.
Guatemalan Tax Authority Website:
For the most up-to-date and comprehensive information on business taxes in Guatemala, it is recommended to visit the official website of the Superintendencia de Administración Tributaria (SAT). The SAT is the tax authority responsible for tax administration in the country.
Superintendencia de Administración Tributaria (SAT) Website: Official Guatemalan Tax Authority Website