Guatemala Freelancer & Sole Proprietor — ISR Self-Employment Return (SAT-1431 / Régimen Opcional)

Establish the client's income type and confirm which SAT-registered self-employment regime applies for the tax year. Guatemala splits ISR into separate income categories (renta del trabajo vs rentas de actividades lucrativas), and the correct regime — Optional Simplified (5%/7% on gross), Profit/Utilidades (25% on net), or Pequeño Contribuyente (5% flat) — must be confirmed before any computation begins. An incorrect assumption here propagates errors through every subsequent phase.

Gather all income received during the year and reconcile bank credits against issued facturas. Under the Optional Simplified and Pequeño Contribuyente regimes tax is assessed on gross income, so every quetzal received — HONORARIOS, SERVICIOS PROFESIONALES, TRANSFERENCIA, STRIPE/PAYPAL/WISE payouts — must be captured. Under the Profit regime, the same gross figures also become the starting point before deductions. Own-account transfers (TRANSFERENCIA PROPIA) and loan receipts are excluded.

Applicable only to clients on the Régimen Sobre Utilidades (25% on net profit). Identify and document deductible business costs — office rent, accountancy/legal fees, IGSS employer contributions, utilities (business-use portion), marketing, and bank charges. Under the Optional Simplified and Pequeño Contribuyente regimes, skip this phase entirely: those regimes tax gross income and no expense deductions are permitted. For mixed-use expenses (home office, vehicle, phone), apply a 0% default until the client provides a documented apportionment basis.

For the Optional Simplified and Pequeño Contribuyente regimes, compute ISR for each calendar month and verify that monthly declarations were filed within the first 10 business days of the following month via Agencia Virtual / Declaraguate. Optional Simplified applies 5% up to Q30,000/month gross, then Q1,500 + 7% on the excess. Pequeño Contribuyente applies a flat 5% and also checks the annual billing limit (Q465,381.25 per Decreto 31-2024). For the Profit regime, verify quarterly advance payments instead.

Prepare the annual ISR working paper and the SAT-1431 return. For the Optional Simplified regime the SAT-1431 consolidates the year's monthly declarations and credits any payments already made. For the Profit regime it reports annual gross income, total deductible expenses, net profit, and 25% ISR, crediting quarterly advance payments. Identify any balance due or refund position. The SAT-1431 is due 31 March (within 3 months of the calendar year-end), filed electronically via Agencia Virtual.

Assess the client's IVA obligations alongside ISR. Under the General IVA Regime, 12% IVA collected on sales is a liability (not income) and must be reported separately; IVA paid on purchases may generate an IVA credit. Under the Pequeño Contribuyente regime the 5% combined rate already covers IVA — no separate IVA return is needed. For employment-income clients (if mixed), confirm whether the Planilla del IVA was filed by 10 January to claim the Q12,000 IVA credit against ISR.

Submit the SAT-1431 and any outstanding monthly declarations via Agencia Virtual / Declaraguate, arrange payment of any balance due, and resolve identified penalties. Late monthly declarations attract a Q150 fine each; unpaid tax accrues mora at 0.005% per day (Código Tributario Art. 92). If the client self-discloses before a SAT audit, penalties may be reduced by up to 85% under the voluntary disclosure programme. Confirm that payment receipts are saved and the SAT account (cuenta corriente) reflects the correct balance.