Guatemala Corporate Income Tax

Corporate income tax rates and regimes

Guatemalan companies choose annually between a profit-based general regime (25% on net income) and an optional simplified regime that taxes gross income at 5%/7%. Tax is levied on Guatemalan-source income only.

• General regime rate (Regimen Sobre las Utilidades) — 25 percent (on net taxable profit) (Ley de Actualizacion Tributaria (Decreto 10-2012), Libro I, Rentas de Actividades Lucrativas — https://taxsummaries.pwc.com/guatemala/corporate/taxes-on-corporate-income)
• Optional simplified regime — first band (Regimen Opcional Simplificado) — 5 percent (on gross income up to GTQ 30,000 per month) (Ley de Actualizacion Tributaria (Decreto 10-2012), Libro I, Regimen Opcional Simplificado — https://taxsummaries.pwc.com/guatemala/corporate/taxes-on-corporate-income)
• Optional simplified regime — second band — 7 percent (on the portion of monthly gross income exceeding GTQ 30,000) (Ley de Actualizacion Tributaria (Decreto 10-2012), Libro I, Regimen Opcional Simplificado — https://taxsummaries.pwc.com/guatemala/corporate/taxes-on-corporate-income)
• Simplified regime filing frequency — Monthly via withholding/declaration; the tax is generally final on the gross income taxed (Ley de Actualizacion Tributaria (Decreto 10-2012), Libro I, Regimen Opcional Simplificado — https://taxsummaries.pwc.com/guatemala/corporate/taxes-on-corporate-income)
• General regime tax base — Net Guatemalan-source income: gross income less deductible costs, expenses and allowances (Ley de Actualizacion Tributaria (Decreto 10-2012), Libro I, Rentas de Actividades Lucrativas — https://taxsummaries.pwc.com/guatemala/corporate/income-determination)
• Solidarity Tax (Impuesto de Solidaridad, ISO) — 1 percent (quarterly on the greater of net assets or gross income; creditable against ISR (general regime) (approx — confirm)) (Ley del Impuesto de Solidaridad (Decreto 73-2008) — https://taxsummaries.pwc.com/guatemala/corporate/other-taxes)
• Withholding tax on dividends (to residents) — 5 percent (final withholding tax on distributed profits/dividends) (Ley de Actualizacion Tributaria (Decreto 10-2012), Libro I, Rentas de Capital — https://taxsummaries.pwc.com/guatemala/corporate/withholding-taxes)
• Withholding tax on dividends (to non-residents) — 5 percent (treated as Guatemalan-source distribution; some guides cite up to 10% — confirm (approx — confirm)) (Ley de Actualizacion Tributaria (Decreto 10-2012), Libro I, Rentas de No Residentes — https://taxsummaries.pwc.com/guatemala/corporate/withholding-taxes)
• Withholding tax on interest (to non-residents) — 10 percent (final withholding tax on interest paid to non-residents) (Ley de Actualizacion Tributaria (Decreto 10-2012), Libro I, Rentas de No Residentes — https://taxsummaries.pwc.com/guatemala/corporate/withholding-taxes)
• Withholding tax on royalties / technical fees (to non-residents) — 15 percent (final withholding tax on royalties, professional and technical fees paid abroad) (Ley de Actualizacion Tributaria (Decreto 10-2012), Libro I, Rentas de No Residentes — https://taxsummaries.pwc.com/guatemala/corporate/withholding-taxes)
• Annual corporate ISR return deadline (general regime) — 31 March following the 31 December fiscal year-end (Ley de Actualizacion Tributaria (Decreto 10-2012), Libro I (ISR) — https://taxsummaries.pwc.com/guatemala/corporate/tax-administration)
• Quarterly advance payments (general regime) — Quarterly ISR advance payments are required, credited against the annual liability (approx — confirm) (Ley de Actualizacion Tributaria (Decreto 10-2012), Libro I, Rentas de Actividades Lucrativas — https://taxsummaries.pwc.com/guatemala/corporate/tax-administration)