When is paid, where and who must cancel this tax

During the month of July, all property owners in Guatemala must pay the Single Property Tax (IUSI) corresponding to the second quarter of the year. IUSI payment constitutes the second most important income for the country’s municipalities, Behind the constitutional contribution delivered annually by the Government.

This tax was created in 1995 through an agreement between the Municipality of Guatemala and the Ministry of Public Finance (MINFIN). Subsequently, it was implemented in the municipalities throughout the country and its regulation was established by means of Decree 15-98 of the Congress of the Republic, which contains the Law on the Single Property Tax, in force to date, according to data from the Finance portfolio.

The iusi can be paid annually or quarterly. That is, the annual amount can be divided by four, number of quarters of the year, and that will be the value that must be canceled every three months.

According to the law, there is a period of one month after the expiration of the quarter to make the payment without a fine per fine, which is 20% on the amount owed.

How to make the quarterly payment of the IUSI?

Payment is made as follows:

• The first quarter, which includes January, February and March, can be paid in April. The deadline is April 30.
• The second quarter, which covers April, May and June, must be paid in July, no later than day 31.
• The third quarter, which includes July, August and September, is paid in October, also with a deadline on day 31.
• The fourth quarter, which includes October, November and December, is paid in January of the following year, until the 31st.

Iusi payment can be made in minfin receiving boxes, in municipal treasures or at the Bank of Guatemala. The online option is also enabled through virtual banking.

How to calculate the tax payment?

According to article 11 of the IUSI Law, the scales and fees are:

• Until q2 thousand: exempt.
• From Q2,000.01 to Q20,000: 2 per thousand rate.
• From Q20,000.01 to Q70,000: rate of 6 per thousand.
• From Q70,000.01 onwards: Rate of 9 per thousand.

Example:

If the value of the property is Q25 thousand, the rate of 6 per thousand is applied:

Q25,000 × 0.6% = Q150.00

This amount can be paid with a single annual payment or divided into four quarterly payments of Q37.50.

Of the total raised, 70% allocates the municipalities and the remaining 30% to administrative expenses of the State.

What is the importance of IUSI?

The real estate professionals (GPI) indicates that The iusi has a relevant role in municipal financing and in the regulation of land use.

Before its implementation, municipal income came from specific arbitration and rates, which were insufficient. Therefore, a stable source of income was created, in line with the worldwide tendency to tax the properties to finance services and promote urban development, he says.

The iusi fulfills several functions:

• Municipal Services Financing: guarantees resources for garbage collection, street maintenance, public lighting and parks.
• Urban regulation and planning: discourages speculation and promotes efficient soil use.
• Fiscal equity: ensures that owners contribute proportionally to public services.
• Sustainable development: It allows infrastructure investments, green areas and improvement of quality of life.

Who are exempt from the IUSI payment?

According to article 12 of the law, they are exempt:

• The State, decentralized, autonomous entities and municipalities.
• Diplomatic missions and consulates.
• Universities.
• Religious entities.
• Private educational centers.
• Professional schools.
• The Autonomous Sports Confederation of Guatemala (CDAG) and the Guatemalan Olympic Committee (COG).