According to estimates of the Superintendence of Tax Administration (SAT), about 20 thousand taxpayers of the General VAT regime would be interested in moving to the small taxpayer, after the increase in the maximum limit of annual income established by law, and the entity explains what controls will apply now.
This possibility of the interest of 20 thousand taxpayers was detected given the level of income they have had, the institution explains. However, he adds that this decision is typical of the taxpayer and will depend on the nature of the business model, since it should be remembered that the invoices issued under the small taxpayer regime do not generate right to tax credit.
Decree 31-2024, which contains the Law for the Integration of the Primary and Agricultural Productive Sector, also reformed the Value Added Tax Law (VAT) and increased to 125 minimum wages the maximum limit of gross income to be in the regime of small taxpayers.
By 2025 it is estimated in Q465 thousand 381.25, the reforms also established more controls by the Tax Administration for that regime.
The SAT explains the amounts, provisions and controls:
- Based on what annual income should be estimated
The SAT recommends that if you consider the possibility of registering to the small taxpayer regime they can do so based on their income estimates by the year 2025, and provided that they do not exceed the amount established in the Law. This is the amount of 125 minimum wages that are equivalent to the maximum annual limit of Q465 thousand 381.25.
- What new controls are there
With the validity of Decree 31-2024, the SAT has the obligation to continuously verify if taxpayers have exceeded the annual income limit for the equivalent of 125 monthly minimum wages in force for the agricultural sector, not including the incentive bonus.
“With this, the SAT must confirm whether taxpayers can remain or enter the regime, based on the income generated during the year 2025 and also considering what was reported in the previous calendar year, 2024,” adds the tax entity, “adds the entity.
- What is the amount of Q465 thousand 831.25 based
It is the result of multiplying the maximum of 125 non -agricultural minimum wages established by law for the amount of that payable and in force by 2025.
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The Government Agreement 264-2024 sets the minimum wages by 2025, but the one used, according to the law and the total annual amount released by the SAT, is the non-agricultural pay of the economic constituency one corresponding to the department of Guatemala that for this year is Q3 thousand 723.05 but the bonus of Q250 per month should not be added to it.
- The regime change must be updated in the RTU
The regime change must be done updating the data in the Digital Unified Tax Registry (RTU) from its virtual agency.
The validation and review of the SAT to materialize the regime change is carried out automatically in the system, explains the institution.
- If you move from the other regime, in which month you should begin to be taxed in the small taxpayer regime
Each regime change begins its validity on the first day of the following month; For example, a change made in April 2025 began its validity in May 2025, and it is not necessary to wait for the fiscal period of 2025 to end.
Taxpayers and collection
The SAT did not provide data on how many small taxpayers are there.
However, statistical data of the entity obtained through other sources, refer to that as of December 2023 there were more than 1 million 160 thousand, according to the number of expected statements. The number of taxpayers in the general VAT regime to that date went from 401 thousand.
Regarding collection, the SAT electronic portal refers that in 2024 the small taxpayer regime registered Q754.9 million, while the general, Q18 thousand 516.2 million.
Will there be taxpayers migration from other regimes?
Recently consulted the SAT -collection mayor, Érick Echeverría, if they consider that there will be a lot of migration of taxpayers who are in other VAT regimes towards that of small taxpayer, the official explained that the analysis must be seen in an integral way.
He explained that it could be transferred considering the new ceiling or maximum limit of annual income, however, he commented that other complementary situations must be evaluated, since, for example, an economic agent dedicated to doing business with companies that are registered in the general VAT regime and in the Income Tax (ISR), you must take into account that possibly your network of clients requires that you are registered in the general regime so that you can use the invoices VAT prosecutor.
The registration or migration of taxpayers will be seen based on the impulse and the response that the implementation of these reforms is having in practice, he added.
Although some negative effect on collection can be observed in a nominal way, but it is also necessary to see, what negotiation capacity will the economic agents have with their clients that these invoices do not generate the right to tax credit.
It should also be considered that the SAT detected that taxpayers registered in the small taxpayer regime, when reaching the maximum revenue limit of Q150 thousand annually that it was in force before, had an incentive to stop billing, but now with the new limit (Q465 thousand per year) it is very likely that these economic agents continue invoicing and that represents that they continue to pay their tax. But, the official said last week, that it is still rushed to be able to have conclusions regarding the response that taxpayers may have.