Corporate - Income determinationLast reviewed - 12 January 2023
For tax purposes, taxpayers are authorised to use any of the following methods for valuing stocks (i.e. inventory), provided they technically fit the taxpayers' business and are consistently applied:
- Cost of production.
- First in first out (FIFO).
- Weighted average.
- Historical price of assets.
- Estimated cost at a fixed price (additional for livestock activities).
The regime of capital income, capital gains, and capital losses is established with the following tax rates:
- Real estate equity income: 10%.
- Income from trading movables: 10%.
- Capital gains and losses: 10%.
- Incomes from lotteries and raffles: 10%.
Capital losses can be netted only against capital gains, up to a maximum of two years.
Dividends earnings and profits are subject to a 5% income tax.
All interest income is subject to a 10% income tax.
Royalties are taxed at a 15% WHT rate.
Foreign-source income received by a domestic corporation is non-taxable under Guatemalan income tax law, provided that it does not relate to a service or activity rendered in Guatemalan territory.