Taxes - Accounting

Guatemala

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Tax Rates | Accounting Rules

Tax Rates

Consumption taxes

Nature of the tax: IVA, Value added tax
Tax rate: 12%
Reduced tax rate: There is no reduced rate.
Basic foodstuffs, certain financial services and the sales of some low-rent housing are exempt of tax. Exports are not subjected to VAT.
Other consumption taxes: A special tax is added to products with alcoholic content and on the sale of used cars.

Corporate taxes

Tax rate

Corporate income tax	5% on gross income under the general income tax regime and 31% on taxable income under the optional regime.
ISO Tax	Temporary tax applicable to agricultural companies at a rate of 1% on total assets or income, whichever is greater.

Capital gains taxation: On the long run, capital gains are taxed in Guatemala at a rate of 10%.
Main allowable deductions and tax credit: Expenses are deductible for depreciation, payments to foreign affiliates, all taxes other than income tax and value added tax, and certain donations.
Other corporate taxes: Stamp duty, real property tax, social security contributions, inheritance and gift tax.

Individual taxes

Tax rate

Income tax	The rate is progressive and varies from 15 to 31%.
up to GTQ 65,000	15%
GTQ 65,000 to 180,000	20%
GTQ 180,000 to 295,000	25%
Over GTQ 295,000	31%

Allowable deductions and tax credit: Individuals can deduct: personal deduction: GTQ 36,000; social security contributions (4.83% of salary); life insurance premiums; medical expenses (excluding medicine); donations.
Special expatriate tax regime: None.The official text on income tax only differentiates between residents and non-residents in the country.

Pour aller plus loin dans vos recherches nous vous proposons de connaître les taxes locales connaître les taxes locales qui s'appliquent à votre produit.

Sources of fiscal information

Tax Authorities: Guatemala Tax Administration (in Spanish)
Other domestic resources: Tax information source (Spanish only)

Accounting Rules

Tax year: The fiscal year runs from January 1 of one year to December 31.
Accounting standards: From January 1st, 2008, Guatemala adopted the IAS - International Accounting Standards and IFRS - International Financial Reporting Standards. To view these standards, see the IASB website: International Accounting Standards Board - IASB.
Accounting regulation bodies: Congress of the Republic of Guatemala
Accounting reports: All companies have to provide an annual report in Spanish and publish their balance sheet and profit and loss statements in the Official Gazette. For more information consult the Fundesa's Business Guidebook ; and see the document on accounting in Guatemala: Hispanic-American Commission (Spanish only).
Publication requirements: The companies balance sheets have to be published each year. It is advisable to have an accounting system that is clear and wholly translated into Spanish. It has to be noted that it is difficult to get information on Guatemalan companies as there are very few published balance sheets.
Professional accountancy bodies: Institute of Public Accountants and Auditors of Guatemala
Guatemalan Association of Public Accountants and Auditors
List of audit firms
Certification and auditing: Audited financial statements must be filed annually. You can contact an external auditor :Deloitte, KPMG, Ernst & Young, PricewaterhouseCoopers, Diaz Reyes y asociados. See also list of audit firms in the Yellow Pages (Spanish only).
Accounting news: Accounting in Guatemala (Spanish only)
Guatemalan Website
IAS Plus