Guatemala
Corporate Tax Guide
Time of Update: 4/06/2026
Guatemala's tax system encompasses several key types of taxation, aimed at both individuals and corporations. The country imposes a Value-Added Tax (VAT) of 12% on most goods and services, with certain exemptions such as goods imported by cooperatives and diplomatic missions. Guatemala also has a stamp tax, calculated at 3%, applicable to commercial and legal documents, though there are specific exemptions. Corporate Income Tax (CIT) is structured into two regimes: a 25% tax on net income or an optional 7% tax on gross income, depending on the company's preference. Capital gains, both for corporations and individuals, are taxed at a flat rate of 10%. This system ensures revenue generation while providing options for simplified taxation methods, particularly for corporations.
Guatemala Corporate Income Tax (CIT)
General CIT Rate:
System on earnings: 25% on net income;
Simplified optional system: 7% on gross income
Simplified optional system: 7% on gross income
CIT Return Due Date:
March 31
CIT Payment Due Date:
March 31
CIT Estimated Payment Due Date:
System on earnings: Quarterly instalments;
Simplified optional system: Monthly, within the first ten working days of the month.
Simplified optional system: Monthly, within the first ten working days of the month.
Guatemala Withholding Tax (WHT)
Resident Withholding Tax (Dividend/Interest/Royalty):
5/0/0
None-Resident Withholding Tax (Dividend/Interest/Royalty):
5/10/15
Guatemala Value-Added Tax (VAT)
General VAT Rate:
12
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Guatemala Capital Gain Tax (CGT)
General Capital Gain Tax Rate:
10%
Guatemala Effective Tax Rate (ETR)
Composite Effective Average Tax Rate:
22.75%
Composite Effective Marginal Tax Rate:
13.33%
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TKEG Expat ™ Guatemala Corporate Tax Guide
1.
Guatemala Value-Added Tax (VAT)
In Guatemala, a 12% VAT is imposed on the sale or transfer of goods and the provision of services. This includes non-personal services carried out in Guatemala. The tax is collected by way of the invoice system, where the VAT charged to customers is offset by the VAT paid on purchases, resulting in the net tax amount being paid to the government. Some transactions, such as the circulation of credit titles, are exempt from VAT. Specific categories of goods and services are exempt from this tax, including imports related to cooperatives, temporary importation, and diplomatic missions.
2.
Guatemala Stamp Taxes
Guatemala imposes a stamp tax on all commercial and legal documents that are not otherwise subject to VAT or similar exemptions. The tax is generally calculated at a rate of 3% of the face value of the document or the gross value of the transaction. This tax also applies to dividend payments or credits at a rate of 5%. Exemptions from this tax include letters of credit and transactions involving international transfers of funds. In recent updates, the stamp tax on dividend payments has been repealed in favor of a 5% income tax on dividends.
3.
Guatemala Corporate Income Tax (CIT)
Guatemala’s CIT is structured with two different regimes: a system based on earnings, which taxes at a rate of 25% on net income, and a simplified optional system that taxes 7% on gross income. The CIT return for both regimes is due by March 31. Companies paying under the system on earnings must settle the final balance upon filing the return, while the simplified optional system sees withholdings made throughout the year. Quarterly installments are required for companies taxed on earnings, and monthly payments are required for those under the simplified optional system.
4.
Guatemala Capital Gains Tax (CGT)
In Guatemala, capital gains for both corporations and individuals are taxed at a flat rate of 10%. This applies to gains resulting from the transfer of equity rights, such as shares, and other capital-related transactions. The uniform tax rate ensures simplicity in the taxation of capital gains across various sectors, encouraging transparency and efficient tax collection.
5.
PayRoll Tax
There are no payroll taxes other than social security contributions.
