This article presents a detailed overview of the corporate tax regime applicable to companies for the assessment year 2025. Readers can expect a breakdown of the main tax rates, assessment rules, and applicable surtaxes, as well as actionable recommendations for optimizing their tax positioning in this jurisdiction.
Corporate Tax System Overview
The corporate tax system is based on a progressive regime, where the total taxable income of a company determines the applicable rate. The assessment is conducted on a corporate basis, with tax liabilities calculated according to the company’s annual income and specific asset conditions.
Main Tax Rates and Brackets for Companies
The table below summarizes the progressive tax brackets in place for corporate entities for the year 2025. The national currency is the Guatemalan Quetzal (GTQ).
| Taxable Income (GTQ) | Tax Rate (%) |
|---|---|
| 0+ | 25% |
| GTQ 0.01 – GTQ 30,000 | 5% |
| GTQ 30,000.01 and above | 7% |
It is important to note that, while multiple brackets are available, the practical application of these tiers should be carefully reviewed in consultation with the local tax code or a professional, as both 25% and the tiered 5%/7% rates are noted in current documentation.
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Surtaxes for Corporations in 2025
In addition to the income tax, companies are subject to a solidarity tax, known locally as “ISO.” This tax is imposed at a flat rate of 1% according to the following rule:
| Surtax Description | Rate (%) | Tax Base |
|---|---|---|
| Solidarity Tax (ISO) | 1% | Net assets or gross income (whichever is higher) |
This additional tax must be factored into corporate planning, especially for asset-heavy or high-turnover businesses, as it directly impacts the effective total tax rate payable.
Important Structural Details
- Assessment Basis: Corporate (the entity itself is the taxpayer, not the shareholders)
- Current Standard Rate: Official figures for the overall headline rate are not publicly disclosed, but the brackets above are operative for 2025 filings.
- Holding Periods: There are no disclosed minimum or maximum asset holding periods affecting the main corporate tax calculation.
Summary Table: Corporate Tax and Surtax (2025)
| Component | Rate (%) | Tax Base | Unit (GTQ) |
|---|---|---|---|
| Corporate Income Tax (Progressive) | 5% / 7% / 25% | Taxable income (see above) | GTQ |
| Solidarity Tax (ISO) | 1% | Net assets or gross income (higher of the two) | GTQ |
Pro Tips for Navigating Corporate Tax in 2025
- Review both income and asset figures when budgeting year-end tax liability, as the 1% solidarity tax operates on a dual basis — whichever is greater, net assets or gross income, will apply.
- Corporate entities should regularly audit their internal records to ensure accurate classification of income and assets, minimizing the risk of overpaying due to conservative reporting or classification errors.
- Leverage the lower income tax bracket (5% on the first GTQ 30,000) where feasible, especially for new or smaller corporations, as this can present significant initial savings.
- Ensure that your accounting records are up to date prior to filing deadlines, as late or erroneous filings increase risk of penalties, particularly with tiered tax systems.
Official Information
For up-to-date legal requirements, forms, and regulations, consult the country’s official government tax portal at https://www.sat.gob.gt.
Overall, companies should pay close attention to the progressive tax brackets in effect, the assessment of assets under the solidarity tax, and the precise classification of financial figures throughout the year. Structuring corporate activities to strategically manage both taxable income and asset levels will help optimize the effective tax rate. As with any evolving tax regime, staying current with official releases ensures compliance and reduces unexpected liabilities.