Guatemala
Overview
Last reviewed - 17 July 2024Guatemala, 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 | |
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Headline CIT rate (%) |
System on earnings: 25% on net income; Simplified optional system: 7% on gross income |
Corporate income tax (CIT) due dates | |
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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 | |
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Headline PIT rate (%) |
7 |
Personal income tax (PIT) due dates | |
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PIT return due date |
NP |
PIT final payment due date |
NP |
PIT estimated payment due dates |
NP |
Value-added tax (VAT) rates | |
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Standard VAT rate (%) |
12 |
Withholding tax (WHT) rates | |
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WHT rates (%) (Dividends/Interest/Royalties) |
Resident: NA; Non-resident: 5 / 10 / 15 |
Capital gains tax (CGT) rates | |
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Headline corporate capital gains tax rate (%) |
10 |
Headline individual capital gains tax rate (%) |
10 |
Net wealth/worth tax rates | |
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Headline net wealth/worth tax rate (%) |
NP |
Inheritance and gift tax rates | |
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Headline inheritance tax rate (%) |
NP |
Headline gift tax rate (%) |
NP |