Guatemala

Overview

Last reviewed - 08 July 2020

Guatemala, a constitutional democratic republic located in Central America, is bordered by Mexico to the north, the Pacific Ocean to the west, Belize and the Caribbean Sea to the east, and Honduras and El Salvador to the south. It is divided into 22 geographic departments, with Guatemala City as the capital. The official language of Guatemala is Spanish, and its currency is the quetzal (GTQ).

Guatemala, which won its independence in 1821, is the most populous of the Central American countries. The agricultural sector accounts for nearly 15% of gross domestic product (GDP) and half of the labour force. Key agricultural exports include coffee, sugar, and bananas. The Central American Free Trade Agreement (CAFTA) that entered into force in July 2006 spurred increased investment and diversification of exports, with the largest increases in ethanol and non-traditional agricultural exports.

PwC InterAmericas is a regional entity comprised of seven firms: PwC Guatemala, PwC El Salvador, PwC Honduras, PwC Nicaragua, PwC Costa Rica, PwC Panama, and PwC Dominican Republic. Together, we have over 1,000 professionals ready to provide our clients with audit, tax, legal, and consulting services. PwC InterAmericas firms are backed by over 40 years of experience rendering a high standard of professional services to the private sector, public sector, and non-profits. PwC Guatemala supports clients with the local knowledge and skills of its people and with access to a broad range of other professionals across the PwC global network of firms.

Quick rates and dates

Corporate income tax (CIT) rates
Headline CIT rate (%)

System on earnings: 25% on net income;

Simplified optional system: 7% on gross income

Corporate income tax (CIT) due dates
CIT return due date

31 March under both regimes.

CIT final payment due date

System on earnings: Balance is due upon filing the return (31 March);

Simplified optional system: There is no final payment, just a balance of withholdings made through the year.

CIT estimated payment due dates

System on earnings: Quarterly instalments;

Simplified optional system: Monthly, within the first ten working days of the month.

Personal income tax (PIT) rates
Headline PIT rate (%)

7

Personal income tax (PIT) due dates
PIT return due date

NP

PIT final payment due date

NP

PIT estimated payment due dates

NP

Value-added tax (VAT) rates
Standard VAT rate (%)

12

Withholding tax (WHT) rates
WHT rates (%) (Div/Int/Roy)

Resident: NA;

Non-resident: 5 / 10 / 15

Capital gains tax (CGT) rates
Corporate capital gains tax rate (%)

10

Individual capital gains tax rate (%)

10

Net wealth/worth tax rates
Headline net wealth/worth tax rate (%)

NP

Inheritance and gift tax rates
Inheritance tax rate (%)

NP

Gift tax rate (%)

NP

NA stands for Not Applicable (i.e. the territory does not have the indicated tax or requirement)

NP stands for Not Provided (i.e. the information is not currently provided in this chart)

All information in this chart is up to date as of the 'Last reviewed' date on the corresponding territory Overview page. This chart has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this chart, and, to the extent permitted by law, PwC does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.