He Income Tax (ISR) In Guatemala it is a tribute that both individual and legal persons on their income must pay.
In the case of salaried workers, the ISR applies to those who perceive a Monthly salary higher than Q4 thousand, amount that is exempt from taxation for being considered a Personal expense not verifiable.
This tax is retained directly by employers and delivered to the Superintendence of Tax Administration (SAT) monthly.
Knowing the details about their calculation and application allows workers to better manage their personal finance and fulfill their tax obligations.
LEGAL BASE OF THE ISR IN GUATEMALA
He ISR in Guatemala is regulated by:
- Tax Update LawDecree number 10-2012 (Articles 68 to 82).
- IR Book I Regulationcontained in the Government Agreement 213-2013 (Articles 67 to 73).
According to this legislation, the ISR applies to Three categories of economic activities:
1. Lucrative activities
They include all commercial operations, production and provision of services carried out in Guatemala, such as:
- Sale and marketing of goods.
- Provision of services inside and outside the country.
- Cargo and passenger transport.
- Advice and consulting services.
- Public shows and commercial events.
2. Work activities
Corresponds to the income generated by a dependency relationshipsuch as:
- Base salaries and salaries.
- Bonuses, bonuses and bonds.
- Overtime payments.
3. Capital activities and capital gains
Includes income generated by investments, such as:
- Bank deposits and interests.
- Investments in money and credit operations.
- Royalties and copyright.
In the case of salaried workers, the ISR applies exclusively to the category of work activities.
From what salary is Ir in Guatemala?
According to the Tax Update Law, Only those who earn more than Q4 thousand per month They are obliged to pay ISR. If a worker has a monthly income lower than this amount, is not subject to retentions.
The legislation establishes that Q48 thousand annually (equivalent to Q4 thousand per month) correspond to Personal expenses and do not require verification, so They subtract automatically of the calculation of taxable income.
How is the ISR calculated on the salary in Guatemala?
He ISR is determined according to the annual income of the workerapplying the following rates:
| Taxable rental | Fixed amount | ISR rate |
| Of Q0.01 to Q300,000.00 | Q0.00 | 5% on taxable income |
| Of Q300,000.01 onwards | Q15,000.00 | 7% On the surplus of Q300,000.00 |
IR calculation in Guatemala, step by step
To better understand how the ISR is calculated, the case of a worker will be taken with the following monthly income:
Step 1. Add monthly income
- Incentive bonus: Q250
- Total monthly income: Q6 thousand 400
Important: All income must be considered, so if the collaborator receives concepts such as Bonus 14, Aguinaldo or an additional bonus (by punctuality, productivity, among others), they must also be included to determine the calculation of the ISR.
Step 2. Determine applicable legal discounts
- Exemption for personal expenses: Q4 thousand
- IGSS discount (4.83% on the base salary): Q289.80
- Total deductions: Q4 thousand 492.66
Important: Donations made in deductions can be included.
Step 3. Calculate the taxable rent
Total income – deductions = Taxable rent
Q6,400 – Q4,492.66 = Q1,907.34
Step 4. Apply the ISR percentage
ISR to pay: Q1,907.34 × 0.05% = Q95.37 monthly
How is the ISR paid in Guatemala?
He ISR on salary It is paid by monthly withholdings made by the employer, who acts as retention agent.
The process carried out by the employer implies, is usually the Department of Salaries or Human Resources:
- Calculate the amount to retain monthly according to the ISR table.
- Make the automatic discount of the worker’s salary.
- Declare and pay the Tax before the SAT within the established deadlines.
The employer makes an annual projection and, based on this, applies the discount corresponding to the collaborator. At the end of the fiscal year, the taxpayer who has an VAT credit can request a Return of until q600 of ISR. This refund is considered as the basis for the elaboration of the VAT FELOR.
Tips for calculating and paying the ISR correctly
- Verify the monthly salary and calculate if the exempt threshold is exceeded.
- Request the employer details of the monthly retention To avoid errors, the Tax Law establishes that the employer must deliver a monthly certificate every month.
He ISR in Guatemala It is a tax that affects workers whose Monthly salary exceeds Q4 thousand. Its calculation is based on the taxable rent after applying deductionsand its payment is made through monthly withholdings.
Understand how this tribute works allows employees to comply with their tax obligations and better manage your Personal economy.