Guatemala

Corporate - Withholding taxes

Last reviewed - 23 January 2020

The following WHT rates apply on payments to non-resident corporations or individuals:

Payment WHT (%)
Dividends, international freight, telecommunications (1) 5
Interest (2) 10
Royalties; salaries; commissions; professional fees; professional, technical, economic, or financial assessment 15
Other 25

Notes

  1. For international news transmission supplied from abroad to local entities, the rate is 3%.
  2. Interests will not be taxed (i.e. no withholding applies) when:
    • These interests are paid to a multilateral entity.
    • These interests are paid from a Guatemalan banking or financial entity to a similar entity abroad.

Non-residents can operate in Guatemala with or without PE; accordingly, income tax treatment depends of the circumstance as follows:

  • Non-residents with PE will be subject to income tax, choosing one of the two methods of payment established for residents.
  • Non-residents without PE will be subject to WHT, applying specific rates according to the nature of the services rendered.

Tax treaties

Guatemala has no tax treaties in force.