Americas · Tax guide
Guatemala
Guatemala lets businesses choose between income tax of 25% on profits and a simplified regime of 5% of gross income up to Q30,000 a month and 7% above. VAT is 12%, small taxpayers can pay a flat rate instead, and all invoices are electronic (FEL). Taxes are administered by the Superintendency of Tax Administration (SAT).
At a glance
- Income tax on profits
- 25%
- Simplified regime
- 5% of gross income up to Q30,000 a month and 7% above
- VAT (IVA)
- 12%
- Withholding on payments abroad
- 15%
Profits regime
On gross income
Small taxpayers up to Q150,000 pay a flat rate
Royalties and services
Choosing an income tax regime
Businesses choose between the profits regime at 25%, with quarterly payments, and the simplified regime at 5% of gross income up to Q30,000 a month and 7% above, paid monthly. Companies on the profits regime also pay the solidarity tax (ISO), creditable against income tax.
VAT and FEL
VAT is 12%, filed monthly. With income up to Q150,000, a business can register as a small taxpayer (Pequeño Contribuyente) and pay a flat rate on gross income instead. All invoices are issued online through FEL by a certified provider.
Payments abroad
Royalties and services paid to non-residents carry 15% withholding, with lower rates on dividends and interest.
Key dates
- MonthlyVAT return and simplified regime payment
- QuarterlyIncome tax payments (profits regime)
- 31 MarchAnnual income tax return
Figures and sources
5 figures- Income tax rate under the profits regime25%Under professional review
- Simplified regime on gross income5% of gross income up to Q30,000 a month and 7% aboveUnder professional review
- VAT (IVA) rate12%Under professional review
- Annual income limit for the small taxpayer (Pequeño Contribuyente) regimeQ150,000Under professional review
- Withholding on royalties and services paid to non-residents (5% on dividends, 10% on interest)15%Under professional review
Indicative only. This assessment is a high-level overview of tax obligations in Guatemala based on the information you provided and rules in force for 2026. It is not tax or legal advice. Consult a qualified tax adviser in Guatemala (a Guatemalan contador público) before making compliance decisions.