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Guatemala - TAXES ACCOUNTING |
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Corporate tax
Tax rate for resident companies |
Companies may be taxed under the Withholding Tax Regime or the Optional Tax Regime. Under the Withholding Tax Regime, companies are subject to tax at a rate of 5% on their taxable income. Taxable income is defined as the difference between gross income and exempt income. Consequently, unless the income is exempt, companies are subject to a 5% definitive withholding tax on their gross income. No deductions are allowed.
Alternatively companies may elect the Optional Tax Regime. Under this regime, companies are subject to tax at a rate of 31% on their taxable income, which is their net income. The Optional Tax Regime is subject to several conditions, including additional mandatory reporting to the tax authorities.
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Taxe rate on long-term capital gains |
Capital gains are taxed at a rate of 10% under the Withholding Tax Regime. Under the Optional Tax Regime, capi- tal gains are taxed at a rate of 31%. Capital losses may be carried forward for five years to offset future capital gains.
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System governing groups of companies and dividends paid by subsidiaries to their parent companies |
Dividends received from resident companies are exempt from tax if the distributing company has paid income tax on the income out of which the dividends are paid. Dividends remitted to nonresidents are subject to a final withholding tax of 10% unless the payer of the dividends has paid income tax in Guatemala in accordance with the law.
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Income tax
Fiscal year |
The fiscal year begins on July 1-st and ends on June 30 of the next year.
In some cases, a fiscal exercise corresponding to the calendar year can be allowed.
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Income tax rate |
Rate is progressive from 15 to 31%, shared out into 4 brackets: (in Quetzal)
| Under 65,000 Q | 15% | | 65,001-180,000 Q | 20% | | 180,000 - 295,000 Q | 25% | | Beyond 295,000 Q | 31% |
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Tax deductions or
other allowances |
Fixed deduction of 36,000 Q per year, life insurance premium, disease, living allowances, premium pension etc...
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VAT rates
Standard rates |
flat rate of 12%.
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Reduced rates |
No
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Other important taxes
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Name of tax |
Rate |
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Successions and donations
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1% to 25%
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Property tax
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of 0 to 0.9%
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Stamp duties
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3%
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Accounting
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Obligations and publications
Each company has to publish a balance sheet each year.
Professionals and representative organizations
The Ministry of Finance is the representative body.
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Export Entreprises SA ©, All rights reserved
Last modified in
January 2003
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