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6. Taxes: Guatemala

Taxes in Guatemala: a territorial income tax that taxes only Guatemalan source income, a choice between a 25 percent tax on profits and a 5 and 7 percent tax on gross revenue for business income, a flat 5 percent tax on dividends and 10 percent on other capital income, final withholding of 5 to 25 percent on payments to nonresidents, a 12 percent VAT, a 1 percent quarterly solidarity tax that works as an advance on income tax, a 3 percent stamp tax on documents and a four year audit window, each tied to the official text. For the Argentine side of tax and treaty questions, see The Argentine Thread guide.

Investor view. A territorial income tax, a single 5 percent tax on dividends, a 12 percent VAT that is among the lowest in Latin America and a fixed four year audit window give Guatemala a simple, predictable and competitive tax base for investors planning for growth.

• Guatemala tax system overview: territorial income tax, 25 percent or 5 and 7 percent business regimes, 5 percent dividend tax, nonresident withholding, 12 percent VAT, solidarity tax, stamp tax and the four year audit windowGuatemala taxes only income earned in its territory, so a resident company pays no Guatemalan income tax on foreign source income; business income is taxed either at 25 percent of net profit, with qua

Related: Guatemala country profile · live dashboard · central bank and release calendar · our posts on X · where Argentina is involved, see The Argentine Thread guide