Guatemala Corporate Tax Guide 2026

Overview — Corporate Tax in Guatemala

Corporate tax in Guatemala is governed by the Ley del Impuesto Sobre la Renta (Decree 10-2012) and administered by SAT. A company is tax resident if it is incorporated or managed from Guatemala. Resident companies are taxed on Guatemala-source income only (territorial system). Non-resident companies with a permanent establishment are taxed on Guatemala-source income. The tax year aligns with the calendar year. Annual returns must be filed by 31 March of the following year. Monthly advance payments of ISR are required throughout the year.

Standard Corporate Tax Rate — 25%

The standard CIT rate for companies in Guatemala is 25% of net taxable income. Taxable profit is computed as gross revenue less allowable deductions including operating expenses, cost of goods sold, depreciation, and amortisation. Interest deductions are subject to thin capitalisation rules. Net operating losses may be carried forward for up to 5 years. Companies must make monthly provisional ISR payments based on the previous year's tax or estimated current year profit.

Simplified Regime — 7% on Revenue

Guatemala offers a simplified optional regime (Régimen Opcional Simplificado sobre Ingresos de Actividades Lucrativas) where businesses pay 7% on gross revenue instead of 25% on net profit. This regime is suitable for businesses with relatively low profit margins or high operating costs, as no deductions are allowed. The 7% rate is applied to total revenue. This regime is available to both individuals and legal entities engaged in business activities. Once elected, the taxpayer must remain in this regime for at least 3 years.

Small Business Rate — 5%

Small businesses with annual gross revenue of up to GTQ 150,000 may qualify for the reduced small business ISR rate of 5% on net profit. This rate applies to the first GTQ 150,000 of revenue. Revenue above GTQ 150,000 is taxed at the standard 25% rate. Small businesses must register with SAT and maintain proper accounting records. The reduced rate is designed to encourage formalisation of micro and small enterprises and reduce the compliance burden on smaller businesses.

Capital Allowances & Depreciation

Guatemala allows depreciation deductions for fixed assets used in the business. Depreciation rates are prescribed by law:

• Buildings & constructions — 5% per annum (straight-line)
• Machinery & equipment — 10–20% per annum (straight-line)
• Vehicles — 25% per annum (straight-line)
• Computer equipment — 33% per annum (straight-line)
• Furniture & fixtures — 20% per annum (straight-line)
• Intangible assets — amortised over useful life (up to 20 years)

FAQs

What is the penalty for late filing of corporate tax returns?

Late filing attracts a penalty of 5% to 25% of the tax due plus interest at the legal rate. Monthly provisional payments not made on time also attract penalties and interest.

Can foreign companies claim treaty relief?

Guatemala has a limited number of double tax treaties. Treaty relief may reduce withholding tax rates on dividends, interest, and royalties paid to non-residents of treaty countries.

Is there a minimum tax in Guatemala?

Yes, Guatemala has an alternative minimum tax based on gross assets (Impuesto de Solidaridad) — see the cross-border guide for details. Most companies pay the higher of regular ISR or the solidarity tax.

Disclaimer

This guide provides general information about Guatemalan corporate tax for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Guatemalan tax advisor or SAT for advice specific to your situation. InvestmentKit does not provide tax advice.