Guatemala - Civil Law
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Guatemala taxes

If you want to do business in Guatemala, you have to know about taxation for a LLC which is the most common company structure in Guatemala.

Guatemala taxes corporate income on a territorial basis. This means that income accrued offshore, from our research, and your results may vary, is not taxed. Local-source income may be taxed at 25% of profits or 5-7% of total revenues. This ranks Guatemala as 103th overall with regards to CIT globally.

The VAT rate in GT is 12.00%, that ranks Guatemala as 62nd overall with regards to value added tax rate worldwide. In terms of other taxation, an employer will contribute 12.67% to the equivalent of a social security fund and an employee will contribute 4.83%. The overall complexity of the tax system is medium. This is measured by average time to comply with a country's labor tax requirements is as it is 126hours. Contributing to this is the number of yearly labor tax payments, which is 14 in GT.

Thin capitalisation standards aren't officially enacted. This refers to any type of laws on given company with respect todebt-to-asset ratios. Dividends received from a resident entity are taxed separately from CIT, at a rate of 5%. A dividend is a distribution of a portion of earnings of the legal entity, voted by the board of directors, to shareholders. Dividends can be one of the following shares of stock, cash payments, or other property. Capital Gains are also taxed separately from CIT, at a rate of 10%. A capital gains tax is levied on the profits that a corporation or natural person realizes when they sell sells a capital asset for a price that is higher than the purchase price.

The interest withholding tax rate is estimated at 10%. This should be interpreted that usually the relevant tax authorities expects relevant legal entities to withhold 10% of payments on interests to non-residents. The dividends withholding tax rate is 5%. This means that the tax authorities expects LLCs to pay tax on at least 5% of payments on dividends abroad. The royalties withholding tax rate is 15%. This means that the relevant tax authorities expects relevant legal entities to automatically withhold 15% of payments offshore for on royalties.
There is no known tax on wealth in Guatemala. There are inheritance and real property taxes in Guatemala. We are not aware of any frequently implemented research and development tax incentives in GT.

The above is not tax or legal advice for your individual facts and circumstances. We are able to point you to a lawyer in Guatemala who can give you an answer. Ready to get started? Click the free consultation button above or press Incorporate now if you are in a hurry.

It takes approximately 31 hours to file and prepare documents for a Guatemala Civil Law.
The corporate tax is approximately 25% which is 103 in the world.

Owners of a company in Guatemala are not allowed to carry back a loss .

The vat rate in Guatemala is 12% which ranks 61 in the world.

Patent box
RND credit
Wealth tax
Estate tax
Transfer taxes
Asset taxes
Capital duties
13Tax treaties
0%Offshore Tax
25%Corp rate
-Loss carryback years
31Corporate time
12%VAT rate
10%Capital gains
NoAEOI planned

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Guatemala Tax Treaties

CountryTypeDate signed
DTC 2015-03-13
El Salvador
Faroe Islands
Costa Rica

Country Info

National Flag of
República de Guatemala (spa)
Area Code
Guatemala City
Central America
Native Languages