Guatemala Income Tax

Section 1 — Quick Reference

Quick Reference table

Field	Value
Country	Guatemala (República de Guatemala)
Tax	ISR — Impuesto Sobre la Renta (personal income tax)
Currency	Guatemalan Quetzal (GTQ / Q) only
Tax system	Territorial — only Guatemala-source income is taxed (Decreto 10-2012)
Tax year	Calendar year (1 January — 31 December)
Primary legislation	Ley de Actualización Tributaria, Decreto 10-2012 ("ISR Law")
Supporting legislation	Código Tributario (penalties); Decreto 78-89 (bonificación incentivo); Decreto 31-2024 (Pequeño Contribuyente limit)
Tax authority	SAT — Superintendencia de Administración Tributaria (portal.sat.gob.gt)
Social security authority	IGSS — Instituto Guatemalteco de Seguridad Social (igssgt.org)
Filing portal	SAT Agencia Virtual / Declaraguate
Employment annual return	SAT-1431, due 31 March (within 3 months of year-end)
Validated by	Pending — requires sign-off by a Guatemalan Contador Público y Auditor (CPA)
Validation date	Pending
Skill version	0.1

Confidence note (Tier 2 / research-verified). Core ISR rates, the Q48,000 / Q12,000 deductions, VAT 12%/5%, IGSS 4.83%/10.67%, the Pequeño Contribuyente Q465,381.25 limit, and the 2025/2026 minimum wages are confirmed from cited authoritative / Big-4 sources. Items marked [RESEARCH GAP — reviewer to confirm] were not confirmed from a primary/Big-4 source and MUST be verified against the SAT ISR Law or IGSS/Código Tributario text before any filing.

1.1 ISR — Employment Income (Renta del Trabajo en Relación de Dependencia)

Employment income brackets (Article 73, Decreto 10-2012 (PwC Guatemala — Taxes on personal income, reviewed 9 Jan 2026; Vesco Consultores — ISR empleados))

Annual taxable income (GTQ)	Marginal rate	Cumulative tax at top of band
0 — 300,000	5%	Q15,000
Over 300,000	Q15,000 fixed + 7% on excess	—

• Employment income ISR formula — tax = 5% on the first Q300,000; income above Q300,000 pays Q15,000 + 7% of the excess. (Article 73, Decreto 10-2012)

1.2 ISR — Self-Employment / Business / Professional Income (Rentas de Actividades Lucrativas)

Self-employed individuals and professionals choose ONE of two regimes (Decreto 10-2012):

(a) Régimen Opcional Simplificado Sobre Ingresos — tax on gross income, no expense deductions. Paid monthly. (Source: PwC; Grupo Macsol; inbers.com)

Optional Simplified regime brackets (PwC; Grupo Macsol; inbers.com)

Monthly gross income (GTQ)	Marginal rate	Cumulative tax at top of band
0 — 30,000	5%	Q1,500
Over 30,000	Q1,500 fixed + 7% on excess	—

[RESEARCH GAP — reviewer to confirm] The Q30,000 monthly threshold is reported consistently by Guatemalan advisory sources (Grupo Macsol, inbers) but was NOT confirmed directly from PwC/SAT. The 5%/7% rates and Q1,500 fixed amount mirror the statutory Article-44 structure of Decreto 10-2012. Verify the threshold against the SAT ISR Law text before publishing.

(b) Régimen Sobre Utilidades de Actividades Lucrativas — 25% on net profit (income minus deductible costs/expenses). Quarterly payments; annual return due 31 March. (Source: PwC; Concilia)

Profit regime table (Decreto 10-2012; Concilia)

Net profit	Rate
All net profit	25%

1.3 Pequeño Contribuyente (Small Taxpayer — IVA/ISR combined)

Pequeño Contribuyente table (Prensa Libre; inbers.com)

Item	Value
Rate	5% of monthly gross income
Annual billing limit	Q465,381.25 (= 125 monthly non-agricultural minimum wages of Q3,723.05), Decreto 31-2024, effective 9 Apr 2025
Invoicing	Must issue invoices for sales/services over Q50; keep only a Purchases & Sales book
Exceeding the limit	Must register in the General IVA Regime the following month (or SAT does so de oficio)

1.4 VAT (IVA) — context for self-employed registration

IVA rate table

Item	Value
Standard IVA rate	12% (PwC)
Pequeño Contribuyente rate	5% (see 1.3)

Conservative Defaults

Conservative Defaults table

Ambiguity	Default
Unknown income type (employment vs self-employment)	STOP — do not apply a regime without knowing
Unknown self-employment regime	Optional Simplified (gross income, 5%/7%) — the SAT default if not elected otherwise
Unknown whether IVA credit (Planilla) was filed	Q0 IVA credit
Unknown business-use % (vehicle, phone, home)	0% deduction
Unknown expense category	Not deductible
Personal deduction documentation	Q48,000 standard requires no docs; apply it. Anything above it must be supported
Unknown IGSS applicability	Assume employee in formal dependency = IGSS applies

Section 2 — Required Inputs and Refusal Catalogue

Required Inputs

Minimum viable — bank statement for the full tax year in CSV, PDF, or pasted text, plus confirmation of income type (employee / self-employed) and, for self-employed, which regime applies (Optional Simplified, Profit, or Pequeño Contribuyente).

Recommended — payslips (recibo de salario) showing IGSS withholding and bonificación incentivo; sales invoices (facturas) and purchase receipts; Planilla del IVA confirmation; prior-year SAT-1431 or regime declarations; IGSS contribution records.

Ideal — complete income/expenditure account; asset register (Profit Regime); RetenISR projection from the employer; provisional/quarterly payment confirmations; any other Guatemala-source income.

Refusal if minimum is missing — SOFT WARN. No bank statement at all = hard stop. Bank statement without invoices = proceed with reviewer warning: "This computation was produced from bank statement alone. The reviewer must verify that income is correctly classified by regime, that the Q48,000 personal deduction and any IVA credit are properly supported, and that only Guatemala-source income is included."

Refusal Catalogue

• R-GT-1 — Income type unknown — "ISR is split into separate categories. This skill cannot compute tax without knowing whether the client earns employment income (renta del trabajo) or self-employment/business income (rentas de actividades lucrativas). Please confirm before proceeding." (Section 2 — Refusal Catalogue)
• R-GT-2 — Companies / sociedades — "This skill covers individual taxpayers (employees, sole proprietors, professionals) only. Sociedades anónimas and other entities file corporate ISR. Escalate to a Guatemalan CPA." (Section 2 — Refusal Catalogue)
• R-GT-3 — Foreign-source income — "Guatemala uses a territorial system — only Guatemala-source income is taxed. Foreign-source income, expatriate, and double-taxation questions are out of scope. Escalate to a Guatemalan CPA." (Section 2 — Refusal Catalogue)
• R-GT-4 — Capital income / property disposals — "Rentas de capital and capital-gains computations are a separate ISR category with different rates. Out of scope. Escalate to a Guatemalan CPA." (Section 2 — Refusal Catalogue)
• R-GT-5 — Arrears / SAT enforcement — "Client has outstanding tax arrears or is subject to SAT enforcement. Mora accrues at 0.005 per day of the unpaid tax plus resarcitorio interest. Do not advise. Escalate to a Guatemalan CPA immediately." (Section 2 — Refusal Catalogue)
• R-GT-6 — IVA return requested — "This skill covers income tax (ISR) only — except for the combined Pequeño Contribuyente 5%. For a standalone General Regime IVA return, escalate to a Guatemalan CPA or a dedicated IVA skill." (Section 2 — Refusal Catalogue)

Section 3 — Transaction Pattern Library

This is the deterministic pre-classifier. When a bank statement transaction matches a pattern below, apply the treatment directly. Do not second-guess. If none match, fall through to Tier 1 rules in Section 5.

How to read this table. Match by case-insensitive substring on the counterparty name or description as it appears in the bank statement (Spanish terms expected). If multiple patterns match, use the most specific. If none match, fall through to Tier 1 rules.

3.1 Income Patterns (Credits / Abonos)

Income Patterns table

Pattern	Treatment	Notes
SALARIO, SUELDO, NÓMINA, PLANILLA, [employer name]	Employment income (renta del trabajo)	Goes to the employment ISR computation, NOT self-employment
AGUINALDO	Employment income — exempt up to one month's salary	Excess over one month's salary is taxable
BONO 14, BONO CATORCE	Employment income — exempt up to one month's salary	Excess over one month's salary is taxable
BONIFICACIÓN INCENTIVO, BONIF INCENTIVO	Q250/month — NOT subject to ISR or IGSS	Decreto 78-89; exclude from ISR base and IGSS base
HONORARIOS, SERVICIOS PROFESIONALES, FACTURA	Self-employment gross income	Rentas de actividades lucrativas — apply elected regime
TRANSFERENCIA [client], PAGO [client], DEPÓSITO [client]	Self-employment gross income	Business income — match to facturas
STRIPE, PAYPAL, WISE, PAYONEER PAYOUT	Self-employment gross income	Platform payout — match to underlying invoices
UPWORK, FIVERR	Self-employment gross income	Freelance platform — net of platform commission
ALQUILER RECIBIDO, RENTA RECIBIDA	Rental / capital income	Separate ISR category — flag, out of standard scope (R-GT-4)
INTERESES, INTERÉS	Capital income	Separate ISR category — flag
DEVOLUCIÓN SAT, REINTEGRO ISR	EXCLUDE	Tax refund from a prior year

3.2 Expense Patterns (Debits / Cargos) — Deductible only in the PROFIT regime (25%)

Expense Patterns — Profit regime table

Pattern	Category	Treatment	Notes
ALQUILER OFICINA, RENTA LOCAL	Office rent	Deductible (Profit regime)	Dedicated business premises
CONTADOR, AUDITOR, HONORARIOS CONTABLES	Accountancy fees	Deductible (Profit regime)
ABOGADO, NOTARIO, LEGAL	Legal fees	Deductible (Profit regime)	Must be business-related
PAPELERÍA, ÚTILES, OFICINA	Office supplies	Deductible (Profit regime)
PUBLICIDAD, MARKETING, GOOGLE ADS, META ADS	Marketing/advertising	Deductible (Profit regime)
COMISIÓN BANCARIA, CARGO BANCARIO	Bank charges	Deductible (Profit regime)	Business account only
ENERGUATE, EEGSA, AGUA, INTERNET (business)	Utilities	Deductible (Profit regime), apportion if mixed	Business-use portion only
CLARO, TIGO, TELÉFONO	Telecoms	Deductible (Profit regime), business % only

Expenses are deductible ONLY under the Régimen Sobre Utilidades. Under the Optional Simplified or Pequeño Contribuyente regimes, tax is on gross income and these expenses give NO deduction.

3.3 Expense Patterns (Debits) — Deductions allowed in the EMPLOYMENT computation

Employment deductions table

Pattern	Category	Treatment	Notes
IGSS, CUOTA LABORAL, SEGURO SOCIAL	IGSS employee contribution	Deductible from employment income	4.83% of salary; fully deductible
SEGURO DE VIDA, PRIMA SEGURO VIDA	Life insurance premium	Deductible (non-dotal policies)	Employee's proportional portion
DONACIÓN [State/university/cultural]	Donation	Deductible — unlimited	To State / universities / cultural entities
DONACIÓN [nonprofit/foundation]	Donation	Deductible — capped at 5% of gross income	Nonprofits/foundations
IVA personal purchases (via Planilla)	IVA credit	Credit capped at Q12,000/year	Requires Planilla del IVA filed by 10 January

3.4 Expense Patterns (Debits) — NOT Deductible

Non-deductible expense patterns table

Pattern	Category	Treatment	Notes
RESTAURANTE, COMIDA, ENTRETENIMIENTO	Entertainment / personal meals	NOT deductible	Personal living costs
SUPERMERCADO, PAIZ, LA TORRE, DESPENSA, GROCERIES	Personal expenses	NOT deductible	Private living costs
MULTA, SANCIÓN	Fines/penalties	NOT deductible	Public policy
PAGO ISR, PAGO SAT, IMPUESTO	Tax payments	NOT deductible	Income tax cannot reduce income
RETIRO, CAJERO, ATM (personal)	Drawings	NOT deductible	Not an expense

3.5 Exclusions (Neither Income nor Expense)

Exclusions table

Pattern	Treatment	Notes
TRANSFERENCIA PROPIA, ENTRE CUENTAS, CUENTA PROPIA	EXCLUDE	Own-account transfer
PRÉSTAMO, ABONO PRÉSTAMO, CRÉDITO	EXCLUDE	Loan principal movement
PAGO IVA, IVA SAT	EXCLUDE	IVA liability payment, not an ISR expense
ISR TRIMESTRAL, PAGO TRIMESTRAL	Credit against annual liability (Profit regime)	Quarterly ISR payment — not an expense

3.6 Guatemalan Banks — Statement Format Reference

Guatemalan Banks table

Bank	Common Patterns	Notes
Banco Industrial (BI)	TRANSFERENCIA, ABONO, CARGO, COMISIÓN	PDF/CSV; date format DD/MM/YYYY
Banrural (Banco de Desarrollo Rural)	DEPÓSITO, RETIRO, TRANSF	PDF; widely used for payroll
BAC Credomatic	PAGO, TRANSFERENCIA, COMPRA	PDF/CSV; card transactions show merchant
G&T Continental	ABONO, CARGO, TRANSFERENCIA	PDF
Banco Promerica	TRANSFERENCIA, COMISIÓN	PDF/CSV

Section 4 — Worked Examples

Example 1 — Employee, salary below the Q300,000 band

Input lines (monthly, Banco Industrial): 28/02/2025 ; BI ABONO ; SALARIO FEBRERO ; EMPRESA XYZ S.A. ; +8,000.00 ; GTQ 28/02/2025 ; BI ABONO ; BONIFICACIÓN INCENTIVO ; ; +250.00 ; GTQ

Reasoning: Salary Q8,000/month = Q96,000/year of taxable employment income. The Q250/month bonificación incentivo (Q3,000/year) is exempt from ISR (Decreto 78-89) — exclude it. Apply the Q48,000 standard personal deduction. IGSS employee deduction = 4.83% of Q96,000 = Q4,636.80 (deductible). Assume no Planilla del IVA filed → Q0 IVA credit.

• Taxable employment income = Q96,000
• Less Q48,000 personal deduction − Q4,636.80 IGSS = base of Q96,000 − Q52,636.80 = Q43,363.20
• Base is within the 0–300,000 band → ISR = 5% × Q43,363.20 = Q2,168.16

Classification: Annual ISR ≈ Q2,168.16 (Article 73, 5% band). Bonificación incentivo excluded.

Example 2 — Employee, salary above the Q300,000 band, with IVA credit

Input: Annual taxable salary Q420,000. IGSS withheld = 4.83% × Q420,000 = Q20,286. Planilla del IVA filed claiming the full Q12,000 IVA credit. Q48,000 personal deduction.

Reasoning:

• Net taxable base = Q420,000 − Q48,000 − Q20,286 = Q351,714
• This exceeds Q300,000. ISR = Q15,000 (fixed on first 300,000) + 7% × (Q351,714 − Q300,000)
• = Q15,000 + 7% × Q51,714 = Q15,000 + Q3,619.98 = Q18,619.98
• Less Q12,000 IVA credit → net ISR = Q6,619.98

Classification: ISR before credit Q18,619.98; after Q12,000 IVA credit, Q6,619.98 due.

Example 3 — Self-employed, Optional Simplified Regime (5%/7% on gross), low month

Input line: 15/03/2025 ; BAC PAGO ; HONORARIOS MARZO ; CLIENTE ABC ; +18,000.00 ; GTQ

Reasoning: Optional Simplified Regime taxes gross income monthly, no deductions. Monthly gross Q18,000 is within the 0–30,000 band → ISR = 5% × Q18,000 = Q900. Filed within the first 10 business days of April.

Classification: Monthly ISR = Q900 (5% band, gross income). No expenses deducted.

Example 4 — Self-employed, Optional Simplified Regime, high month (above Q30,000)

Input line: 30/04/2025 ; BI ABONO ; HONORARIOS ABRIL ; CLIENTE DEF ; +50,000.00 ; GTQ

Reasoning: Monthly gross Q50,000 exceeds the Q30,000 threshold. ISR = Q1,500 (fixed on first 30,000) + 7% × (Q50,000 − Q30,000) = Q1,500 + 7% × Q20,000 = Q1,500 + Q1,400 = Q2,900.

Classification: Monthly ISR = Q2,900. (Threshold flagged [RESEARCH GAP] — see Section 1.2.)

Example 5 — Self-employed, Profit Regime (25% on net)

Input: Annual business income Q600,000; documented deductible costs/expenses Q360,000.

Reasoning: Profit Regime: net profit = Q600,000 − Q360,000 = Q240,000. ISR = 25% × Q240,000 = Q60,000. Paid quarterly; annual SAT return due 31 March.

Classification: Annual ISR = Q60,000 (25% of net profit).

Example 6 — Pequeño Contribuyente (5% flat)

Input line: 20/05/2025 ; BANRURAL ABONO ; VENTA MAYO ; ; +25,000.00 ; GTQ

Reasoning: Pequeño Contribuyente pays a flat 5% of monthly gross, combining IVA and ISR. ISR/IVA = 5% × Q25,000 = Q1,250. Check the annual billing limit: if cumulative annual billing reaches Q465,381.25 the client must move to the General IVA Regime the following month (Decreto 31-2024).

Classification: Monthly combined tax = Q1,250.

Example 7 — Bonificación incentivo (exclude from both ISR and IGSS)

Input line: 30/06/2025 ; BI ABONO ; BONIFICACIÓN INCENTIVO JUNIO ; ; +250.00 ; GTQ

Reasoning: The Q250/month incentive bonus (Decreto 78-89) is not subject to ISR or IGSS. Exclude it from the ISR taxable base AND from the IGSS contribution base.

Classification: EXCLUDE from ISR base and IGSS base.

5.1 Territorial Principle

• Territorial Principle — Only Guatemala-source income is taxable. Foreign-source income is excluded. If any income is foreign-source or its source is unclear, flag for reviewer (R-GT-3). (Decreto 10-2012)

5.2 Income Classification by Category

• Income Classification by Category — ISR is split into separate categories. Classify FIRST: - Renta del trabajo (employment in dependency) → brackets 5%/7%, Q15,000 pivot at Q300,000 (Article 73). - Rentas de actividades lucrativas (self-employment/business/professional) → elected regime (Optional Simplified or Profit). - Rentas de capital (rent, interest, dividends) → separate category, out of standard scope (R-GT-4). (Article 73)

5.3 Employment Income — Deductions (Article 73 / Decreto 10-2012)

Employment income deductions table (Article 73 / Decreto 10-2012)

Deduction	Amount / cap	Source
Standard personal deduction	Q48,000/year, no documentation	Vesco Consultores
IVA credit	VAT paid on personal purchases, capped Q12,000/year; requires Planilla del IVA filed by 10 January	Vesco Consultores
IGSS employee contributions	Fully deductible	Vesco Consultores
Life insurance premiums	Non-dotal policies, employee's proportional portion	Vesco Consultores
Donations	Unlimited to State/universities/cultural entities; capped at 5% of gross income for nonprofits/foundations	Vesco Consultores

• Exempt income — Aguinaldo and Bono 14 are exempt up to one month's salary each. Bonificación incentivo (Q250/month, Decreto 78-89) is exempt from ISR entirely. (Decreto 78-89)

5.4 Employment Income — Computation

• Employment income computation steps — 1. Sum gross taxable employment income for the year (exclude bonificación incentivo and the exempt portions of aguinaldo / Bono 14). 2. Subtract the Q48,000 personal deduction, IGSS contributions, life insurance, and donations within caps. 3. Apply the Article 73 brackets: 5% up to Q300,000; Q15,000 + 7% on the excess above Q300,000. 4. Subtract the IVA credit (max Q12,000) to get tax due. (Article 73)

5.5 Self-Employment Regimes

Self-Employment Regimes table

Regime	Base	Rate	Filing
Optional Simplified (Sobre Ingresos)	Gross income, monthly, no deductions	5% up to Q30,000/month; Q1,500 + 7% on excess [RESEARCH GAP — confirm threshold]	Within first 10 business days of following month, electronically
Profit (Sobre Utilidades)	Net profit (income − deductible costs)	25%	Quarterly + annual return due 31 March

• Election permanence — Once elected, the regime applies for the year. Default to Optional Simplified if unknown.

5.6 Pequeño Contribuyente

• Pequeño Contribuyente rule — Flat 5% of monthly gross income, combines IVA + ISR. Annual billing limit Q465,381.25 (Decreto 31-2024, effective 9 Apr 2025). Must issue invoices for sales over Q50. If the limit is exceeded, register in the General IVA Regime the following month. (Decreto 31-2024)

5.7 Non-Deductible Expenses

Non-Deductible Expenses table

Expense	Reason
Personal living expenses (groceries, restaurants)	Not business-related
Fines and penalties	Public policy
ISR itself	Tax on income
Drawings / personal withdrawals	Not an expense
Any expense (Simplified / Pequeño Contribuyente regimes)	Those regimes tax gross income — no expense deductions at all

5.8 VAT (IVA) Interaction

VAT interaction table

Scenario	ISR treatment
Standard IVA 12% collected on sales (General Regime)	Not income — exclude from gross income
Pequeño Contribuyente 5%	Combined IVA+ISR — single 5% on gross
IVA paid on personal purchases (employee)	May be claimed as the Q12,000 IVA credit via Planilla del IVA

Section 6 — Tier 2 Catalogue (Reviewer Judgement Required)

6.1 Regime Election (Self-Employed)

• Choosing Optional Simplified (5%/7% gross) vs Profit (25% net) materially changes tax. Profit regime is usually better only when deductible expenses are high relative to revenue.
• Flag for reviewer: confirm which regime the client has actually elected with SAT, and whether a switch is advisable.

6.2 Home Office / Mixed-Use Expenses (Profit regime only)

• Only the business-use portion of rent, utilities, phone, internet is deductible.
• Must be a genuinely business-used space; mixed personal use must be apportioned reasonably and documented.

Conservative default: 0% deduction until reviewer confirms apportionment basis.

6.3 Motor Vehicle Business Use (Profit regime only)

• Only the business-use percentage of fuel, insurance, and maintenance is deductible.
• Requires a usage log distinguishing business vs personal.

Conservative default: 0% business use until a log is provided.

6.4 IVA Credit (Planilla del IVA)

• The Q12,000 IVA credit requires the Planilla del IVA to be filed by 10 January. If not filed, the credit is lost for the year.
• Flag for reviewer: confirm the Planilla was filed and the VAT receipts support the claimed credit.

6.5 Aguinaldo / Bono 14 Exempt Portion

• Each is exempt up to one month's salary; any excess is taxable employment income.
• Flag for reviewer: confirm the one-month reference salary and compute the taxable excess if any.

6.6 Donations Cap

• Donations to nonprofits/foundations are capped at 5% of gross income; donations to State/universities/cultural entities are unlimited.
• Flag for reviewer: confirm donee category and recompute the cap.

Section 7 — Excel Working Paper Template

GUATEMALA ISR — WORKING PAPER
Tax Year: 2025
Client: ___________________________
Income type: Employment / Self-employed
Self-employment regime: Optional Simplified / Profit / Pequeño Contribuyente
Currency: GTQ

=== A. EMPLOYMENT INCOME (Renta del Trabajo) ===
  A1. Gross taxable salary (exclude bonif. incentivo)   ___________
  A2. Less: exempt aguinaldo (up to 1 month)            ___________
  A3. Less: exempt Bono 14 (up to 1 month)              ___________
  A4. Taxable employment income (A1 - A2 - A3)          ___________
  A5. Less: Q48,000 personal deduction                 ___________
  A6. Less: IGSS employee contributions (4.83%)        ___________
  A7. Less: life insurance premiums                    ___________
  A8. Less: donations (within caps)                    ___________
  A9. Net taxable base (A4 - A5 - A6 - A7 - A8)        ___________
  A10. ISR per Article 73 (5% / Q15,000+7%)            ___________
  A11. Less: IVA credit (max Q12,000, Planilla filed)  ___________
  A12. ISR DUE (A10 - A11)                             ___________

=== B. SELF-EMPLOYMENT — OPTIONAL SIMPLIFIED (per month) ===
  B1. Monthly gross income                             ___________
  B2. Monthly ISR (5% to Q30,000; Q1,500+7% above)     ___________
       [RESEARCH GAP: confirm Q30,000 threshold]

=== C. SELF-EMPLOYMENT — PROFIT REGIME (annual) ===
  C1. Gross business income                            ___________
  C2. Less: deductible costs/expenses                  ___________
  C3. Net profit (C1 - C2)                             ___________
  C4. ISR (25% × C3)                                   ___________

=== D. PEQUEÑO CONTRIBUYENTE (per month) ===
  D1. Monthly gross income                             ___________
  D2. Combined IVA+ISR (5% × D1)                        ___________
  D3. Cumulative annual billing (limit Q465,381.25)    ___________

REVIEWER FLAGS:
  [ ] Income type and regime confirmed?
  [ ] Only Guatemala-source income included?
  [ ] Bonificación incentivo excluded from ISR & IGSS?
  [ ] Aguinaldo / Bono 14 exempt portion correct?
  [ ] Q48,000 deduction and IGSS applied (employment)?
  [ ] IVA credit supported by Planilla (filed by 10 Jan)?
  [ ] Optional-Simplified Q30,000 threshold verified?
  [ ] Pequeño Contribuyente limit not exceeded?
  [ ] No expenses deducted under gross-income regimes?

Section 8 — Bank Statement Reading Guide

Guatemalan Bank Statement Formats

Bank Statement Formats table

Bank	Format	Key Fields	Notes
Banco Industrial (BI)	PDF, CSV	Fecha, Descripción, Débito (Cargo), Crédito (Abono), Saldo	Most common; description contains counterparty + reference
Banrural	PDF	Fecha, Concepto, Retiro, Depósito, Saldo	Widely used for payroll
BAC Credomatic	PDF, CSV	Fecha, Descripción, Monto, Saldo	Card transactions show merchant
G&T Continental	PDF	Fecha, Detalle, Cargo, Abono
Banco Promerica	PDF, CSV	Fecha, Descripción, Monto

Key Guatemalan Banking & Tax Terms

Banking & Tax Terms table

Term	English	Classification Hint
ABONO / DEPÓSITO	Credit / deposit	Potential income
CARGO / RETIRO	Debit / withdrawal	Potential expense
TRANSFERENCIA / TRANSF	Transfer	Check direction & whether own-account
SALARIO / SUELDO / NÓMINA	Salary / payroll	Employment income
HONORARIOS	Professional fees	Self-employment income
FACTURA	Invoice	Self-employment income source doc
BONIFICACIÓN INCENTIVO	Incentive bonus	Q250/month — exclude from ISR & IGSS
AGUINALDO / BONO 14	Christmas / July bonus	Exempt up to one month's salary
IGSS / CUOTA LABORAL	Social security (employee)	Deductible (employment)
COMISIÓN	Bank charge	Deductible only in Profit regime
IVA	VAT	Not ISR income/expense (except Pequeño Contribuyente)

Section 9 — Onboarding Fallback

If the client provides a bank statement but cannot answer onboarding questions immediately:

1. Classify all transactions using the pattern library (Section 3).
2. Mark all Tier 2 items as "PENDING — reviewer must confirm".
3. Apply conservative defaults (Section 1).
4. Generate the working paper (Section 7) with clear flags.
5. Present the following questions to the client:

ONBOARDING QUESTIONS — GUATEMALA ISR
1. Income type: employee (renta del trabajo) or self-employed (actividades lucrativas)?
2. If self-employed, which regime: Optional Simplified (5%/7% on gross),
   Profit (25% on net), or Pequeño Contribuyente (5% flat)?
3. Is all income Guatemala-source? Any foreign income?
4. (Employee) Did you file the Planilla del IVA by 10 January to claim the IVA credit?
5. (Employee) Total IGSS withheld during the year?
6. (Employee) Any aguinaldo / Bono 14 above one month's salary?
7. Do you receive bonificación incentivo (Q250/month)?
8. (Profit regime) Do you have documented deductible costs/expenses?
9. (Pequeño Contribuyente) What was your total annual billing?
10. Any other Guatemala-source income (rent, interest, dividends)?

Section 10 — Reference Material

Key Legislation & Authority References

Key Legislation & Authority References table

Topic	Reference	Source
ISR law	Ley de Actualización Tributaria, Decreto 10-2012	PwC
Employment brackets (5%/7%)	Decreto 10-2012, Article 73	PwC; Vesco
Optional Simplified regime	Decreto 10-2012, Art. 44 structure	Grupo Macsol
Profit regime (25%)	Decreto 10-2012	Concilia
Pequeño Contribuyente limit	Decreto 31-2024 (eff. 9 Apr 2025)	Prensa Libre
Bonificación incentivo	Decreto 78-89	Guatemala.com
Penalties	Código Tributario, Art. 92 et al.	inbers.com

IGSS Social Security Contributions

IGSS contributions table (PwC — Other taxes; Banco Industrial — IGSS 2026)

Party	Rate
Employee (cuota laboral)	4.83%
Employer (cuota patronal)	10.67%
TOTAL IGSS	15.50%

Total = 15.5% of monthly salary (excluding bonificación incentivo). Rates in effect since September 2022 (IGSS acuerdo reforms); unchanged for 2025/2026. (Source: PwC — Other taxes; Banco Industrial — IGSS 2026)

Arithmetic check: 4.83% + 10.67% = 15.50%. ✓

Additional mandatory employer payroll charges table

Charge	Rate	Source
IRTRA	1% of payroll	Remote People
INTECAP	1% of payroll	Rivermate
IGSS employer	10.67%	(above)
Total employer payroll burden	12.67%

Arithmetic check: 10.67% + 1% + 1% = 12.67%. ✓

[RESEARCH GAP — reviewer to confirm] The IGSS program-level breakdown (Enfermedad y Maternidad / Accidentes / IVS split within the 4.83% and 10.67% totals) is reported inconsistently across secondary sources; the totals are confirmed but the per-program allocation is not. Verify against IGSS Acuerdo 1118/1123 before publishing. No IGSS earnings ceiling was found from an authoritative source — treat as "no ceiling" unless SAT/IGSS confirms otherwise.

Minimum Wage (Salario Mínimo)

2025 — Governmental Agreement 264-2024, effective 1 Jan 2025 (Guatemala.com; ONSEC PDF):

2025 Minimum Wage table (Governmental Agreement 264-2024, effective 1 Jan 2025; Guatemala.com; ONSEC PDF)

Circunscripción	Activity	Daily (Q)	Monthly (Q)
CE1 (Dept. of Guatemala)	Non-agricultural	122.40	3,723.05
CE1	Export/Maquila	107.79	3,278.59
CE2 (rest of country)	Non-agricultural	116.73	3,550.60
CE2	Export/Maquila	101.83	3,097.21

2026 — Governmental Agreement 256-2025, effective 1 Jan 2026 (AGN):

2026 Minimum Wage table (Governmental Agreement 256-2025, effective 1 Jan 2026; AGN)

Circunscripción	Activity	Daily (Q)	Monthly (Q)
C1 (Guatemala Dept.)	Agricultural	124.64	3,791.20
C1	Non-agricultural	131.58	4,002.28
C1	Export/Maquila	112.10	3,409.73
C2 (other depts.)	Agricultural	119.21	3,625.89
C2	Non-agricultural	125.49	3,816.90
C2	Export/Maquila	105.90	3,321.10

Bonificación incentivo: Q250.00/month (Decreto 78-89), paid on top of the minimum wage; not subject to IGSS or ISR.

Filing, Forms & Deadlines

Filing, Forms & Deadlines table

Item	Form	Deadline	Source
Employment income annual return	SAT-1431	31 March (within 3 months of year-end)	Vesco
Planilla del IVA (to claim Q12,000 IVA credit)	Planilla IVA	10 January	Vesco
Optional Simplified regime declaration	Monthly (electronic)	First 10 business days of following month	PwC
Pequeño Contribuyente	Monthly	First 10 business days of following month	PwC
Profit Regime	Annual + quarterly	31 March (annual)	PwC

Filing platform: SAT Agencia Virtual / Declaraguate.

Penalties (Código Tributario)

Penalties table

Penalty	Detail	Source
Mora (late payment)	Tax × 0.005 per day of delay (Art. 92)	inbers.com
Late monthly declaration	Q150 fine per overdue month (even zero-value returns)	inbers.com
Resarcitorio interest	Accrues on unpaid tax; rate set periodically by SAT (~Art. 58–59) [RESEARCH GAP — confirm rate]	Prensa Libre
Voluntary disclosure reduction	Up to 85% reduction if self-reported before SAT audit	SAT PDF
Omisión de pago	Commonly cited at 100% of omitted tax [RESEARCH GAP — confirm % against Código Tributario]	unconfirmed

Test Suite

Test 1 — Employee below the Q300,000 band. Input: Annual taxable salary Q96,000; IGSS 4.83% = Q4,636.80; Q48,000 personal deduction; no IVA credit; bonificación incentivo excluded. Expected: base = Q96,000 − Q48,000 − Q4,636.80 = Q43,363.20. ISR = 5% × Q43,363.20 = Q2,168.16.

Test 2 — Employee above the Q300,000 band with IVA credit. Input: Annual taxable salary Q420,000; IGSS Q20,286; Q48,000 deduction; Q12,000 IVA credit. Expected: base = Q351,714. ISR = Q15,000 + 7% × Q51,714 = Q18,619.98. Less Q12,000 = Q6,619.98 due.

Test 3 — Optional Simplified, low month. Input: Monthly gross Q18,000. Expected: ISR = 5% × Q18,000 = Q900.

Test 4 — Optional Simplified, high month. Input: Monthly gross Q50,000. Expected: ISR = Q1,500 + 7% × Q20,000 = Q2,900. (Threshold Q30,000 [RESEARCH GAP].)

Test 5 — Profit Regime. Input: Gross Q600,000; deductible expenses Q360,000. Expected: net Q240,000. ISR = 25% × Q240,000 = Q60,000.

Test 6 — Pequeño Contribuyente. Input: Monthly gross Q25,000. Expected: combined IVA+ISR = 5% × Q25,000 = Q1,250. Check annual billing vs Q465,381.25 limit.

Test 7 — Bonificación incentivo. Input: Q250/month incentive bonus included in the bank feed. Expected: EXCLUDE from both ISR base and IGSS base (Decreto 78-89).

Test 8 — Wrong regime, expenses claimed. Input: Optional Simplified client tries to deduct Q40,000 of office expenses. Expected: Reject — gross-income regimes allow NO expense deductions. Tax stays on gross.

PROHIBITIONS

• NEVER apply a regime without first confirming income type (employment vs self-employment)
• NEVER deduct business expenses under the Optional Simplified or Pequeño Contribuyente regimes — those tax gross income
• NEVER include bonificación incentivo in the ISR base or the IGSS base
• NEVER tax foreign-source income — Guatemala is territorial
• NEVER claim the Q12,000 IVA credit without confirming the Planilla del IVA was filed by 10 January
• NEVER exceed the Q48,000 personal deduction without supporting documentation
• NEVER allow ISR itself, fines, or personal drawings as deductions
• NEVER treat the Q30,000 Optional-Simplified threshold as confirmed — it is a [RESEARCH GAP]
• NEVER apply an IGSS ceiling — none was confirmed; treat contributions as uncapped pending review
• NEVER present tax calculations as definitive — always label as estimated and flag [RESEARCH GAP] items

Disclaimer

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