Tax and compliance in Guatemala

Snapshot

Business tax in Guatemala is administered by the tax authority SAT and starts with the tax number known as the NIT. As of 7 January 2026, income tax runs through either the profit regime at 25 percent on net profit or an optional simplified regime that taxes gross income at 5 percent up to a monthly threshold and 7 percent above it, value added tax known as IVA is 12 percent and generally filed monthly, and a 1 percent solidarity tax known as ISO applies under the profit regime. Rates and rules change, so confirm your position with SAT or a local tax adviser.

Income tax: Profit regime at 25 percent on net profit, or the optional simplified regime at 5 percent and 7 percent on gross income. Confirm the regime with SAT.
Value added tax: IVA at 12 percent on goods and services and imports, generally filed monthly.
Solidarity tax: ISO at 1 percent under the profit regime, on the higher of net assets or gross income, generally creditable within limits.
Invoicing: Electronic invoicing under the FEL system is the norm. The NIT identifies the business to SAT.

Fees and features as of 7 January 2026Last reviewed 7 January 2026

General information, not financial, legal, or tax advice. Verify current terms and eligibility with the provider before applying.

Business tax in Guatemala is administered by the tax authority SAT and starts with the tax number known as the NIT. As of 7 January 2026, income tax runs through either the profit regime at 25 percent on net profit or an optional simplified regime that taxes gross income at 5 percent up to a monthly threshold and 7 percent above it. Value added tax known as IVA is 12 percent and generally filed monthly, and a 1 percent solidarity tax known as ISO applies under the profit regime. Rates and rules change, so confirm your position with SAT or a local tax adviser.

Business tax basics in Guatemala

Tax in Guatemala is administered by the tax authority SAT, and every business is identified by its tax number, the NIT, in the unified tax register. Guatemala applies a territorial system, which broadly means income tax is charged on Guatemalan source income. As of 7 January 2026, the headline business taxes are income tax, value added tax known as IVA, and the solidarity tax known as ISO, alongside electronic invoicing under the FEL system. The figures below are tax rules set by SAT, not bank fees, and they can change, so treat them as a starting point and confirm your own position with SAT or a local tax adviser.

Income tax regimes

For business profits there are two main regimes. Under the profit regime the corporate income tax rate is 25 percent on net profit, after allowable costs and expenses. Under the optional simplified regime, tax is charged on gross income at 5 percent up to a monthly threshold and 7 percent above that threshold, with the tax generally withheld or paid monthly and a return filed. Which regime suits a business depends on its margins and costs, and the thresholds and rules can change, so confirm the choice and the current figures with SAT or a local tax adviser as of 7 January 2026.

Value added tax and the solidarity tax

The standard value added tax, IVA, is 12 percent on the sale of goods and services and on imports, and VAT returns are generally filed monthly with SAT. The solidarity tax, ISO, is a 1 percent tax that applies to companies under the profit regime, charged on the higher of net assets or gross income, and it can generally be credited against income tax within limits. How each applies depends on the regime and the figures, so confirm the current treatment with SAT or a local tax adviser, as of 7 January 2026.

Electronic invoicing and records

Guatemala uses electronic invoicing under the FEL system, so businesses generally issue invoices electronically and keep the supporting records for VAT and income tax. Keeping clean records, with the NIT on documents and receipts and payments evidenced, makes monthly and annual filings and any audit easier. A business account that separates business money from personal money supports this, but the tax obligations themselves are set by SAT, not by the bank.

What to check on tax and compliance

Tax rules change and depend on your business, so confirm these points. Verify with SAT or a local tax adviser

Which income tax regime applies to you, the current rate, and the thresholds for the simplified regime.
The current VAT rate, your filing frequency, and the SAT filing calendar and deadlines.
Whether the solidarity tax applies in your regime, how it is credited, and your obligations under the FEL electronic invoicing system. Confirm with SAT or a local tax adviser.

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Questions about tax and compliance in Guatemala

What is the corporate income tax rate in Guatemala?

Guatemala has two main income tax regimes for business profits administered by the tax authority SAT. Under the profit regime the corporate income tax rate is 25 percent on net profit, while the optional simplified regime taxes gross income at 5 percent up to a monthly threshold and 7 percent above it. The right regime and the current thresholds depend on the business, and rates can change, so confirm the position with SAT or a local tax adviser as of 7 January 2026.

What is the VAT rate in Guatemala and how often is it filed?

The standard value added tax in Guatemala, known locally as IVA, is 12 percent on the sale of goods and services and on imports. VAT returns are generally filed monthly with SAT. Rates and filing rules can change, so confirm the current rate and the filing calendar with SAT or a local tax adviser before relying on them, as of 7 January 2026.

What is the solidarity tax in Guatemala?

The solidarity tax, known locally as ISO, is a 1 percent tax that applies to companies under the profit regime, charged on the higher of net assets or gross income, and it can generally be credited against income tax within limits. How it applies depends on the regime and the figures, so confirm the current treatment with SAT or a local tax adviser, as of 7 January 2026.

How does a business account relate to tax compliance in Guatemala?

A business account does not change what you owe, but it supports compliance by keeping business receipts and payments separate from personal money, which makes electronic invoicing under the FEL system, VAT and income tax filings, and any audit easier to evidence. The tax obligations themselves are set by SAT, not by the bank, so confirm your filing duties with SAT or a local tax adviser, as of 7 January 2026.

Fees, features, and eligibility change and vary by region. This page was last reviewed on 7 January 2026. Confirm current terms with the provider before applying.