Accounting and legal

Accounting and tax

    Guatemala taxation obligations
  1. The corporate tax rate under the general regime is levied on all net income in Guatemala at the rate of 25%. The simplified optional regime on corporate tax on income is at the rate of 7%. The tax year is the calendar year and tax returns are filed by 31st of March yearly. Penalties are imposed for late filling, failure to file, under-reporting or tax evasion;
  2. Branches pay a corporate tax rate of either 25% or 7% depending on the regime opted for as well as branch remittance withholding tax at the rate of 5%;
  3. The standard VAT rate levied on provision of goods and services in Guatemala is at a flat rate of 12%. VAT returns must be filled and paid monthly;
  4. Capital gains tax in Guatemala is levied at the rate of 10%;
  5. Withholding tax is levied on i) dividends at the rate of 5% ii) royalties at 15% iii) interest at 10% iv) technical services fees and commissions at 15% v) transportation at 5%;
  6. Real estate tax is imposed annually at a progressive rate up to 0.9%;
  7. Capital losses can be carried forward for up to two years to offset against capital gains, but may not be carried back;
  8. Employers must pay social security contributions on behalf of their employees at the rate of 12.67%;
  9. Guatemala does not impose foreign exchange controls and foreign investors are free to repatriate profits to other countries;
  10. Guatemala has not entered into income tax treaties with any other countries;
  11. Healy Consultants Compliance Department will assist our Clients with i) documenting and implementing accounting procedures ii) implementing financial accounting software iii) preparation of financial accounting records and iv) preparing forecasts, budget and sensitivity analysis.

Contact us

For additional information on our company registration services in Guatemala, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Mr. Seth Ochieng, directly:
client relationship officer - Seth
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