Last April 9, 2025, came into force Decree 31-2024, and effective important changes were introduced in Guatemala. The main change is the increase of the annual income cap from Q150,000 to Q465,381.25 ($60,030.3).
This amount is equivalent to 125 monthly minimum wages for the non-agricultural sector (Q3,723.05 in 2025; around $480). Moreover, this significantly broadens the number of small businesses that can benefit from the regime.
What is the Small Taxpayer Regime?
The Small Taxpayer Regime in Guatemala is a simplified tax system designed to ease tax compliance for small businesses and entrepreneurs. Under this regime, taxpayers pay a fixed rate of 5% on their gross monthly income, without the need to file regular VAT or income tax returns.
How to be part of the program?
To register under the Small Taxpayer Regime, both individuals and legal entities must have annual income below the new threshold. Registration can be requested by the taxpayer or processed automatically by the Superintendence of Tax Administration (SAT) if the taxpayer meets the requirements.
Exceeding the income limit
If a small taxpayer exceeds the allowed income limit, they must register under the General VAT Regime in the month following the one in which the excess occurred. If they fail to do so, SAT will automatically transfer them and notify the taxpayer accordingly.
Obligations of small taxpayers
Finally, among the main obligations of small taxpayers is the issuance of invoices, especially for sales or services exceeding Q50.
The number of small taxpayers who will benefit from this government measure will increase. Therefore, if you want to expand to this country, do not hesitate to get in touch. We can help you with our accounting, payroll and taxes services in Guatemala.
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All information contained in this publication is up to date on 2024. This content has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice.No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this content, and, to the extent permitted by law, AUXADI does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.