He Congress of the Republic approved the Decree 13–2026, a reform to the Tax Update Law that eliminates the payment of Income Tax (ISR) for workers that accrue minimum wage in Guatemala.
The measure modifies Decree 10–2012 and applies to people in a dependency relationship in different economic sectors. The objective is to prevent those who receive minimum income from being subject to withholdings of this tax.
How the tax base was calculated (without the reforms)
In accordance with article 72 of Decree 10–2012, the tax base From the ISR for employees, up to Q60 thousand could be deducted annually. This amount was divided into:
- Q48 thousand per non-verifiable personal expenses
- Q12 thousand creditable for VAT on purchases and services
In practice, the first Q48 thousand per year—equivalent to Q4 thousand per month, including the incentive bonus—were already exempt from ISR.
Furthermore, features such as bonus and the Bonus 14 They were also exonerated.
Minimum wage 2026 and its impact on the ISR
The adjustment to minimum wage 2026 was key in this reform. In the economic district 1 —which includes the department of Guatemala— the salary changed like this
Non-Agricultural Minimum Wage
- 2025: Q3,723.05 + Q250 bonus Q3,973.05 monthly
- 2026: Q4,002.28 + Q250, for a total of Q4,252.28 per month
This increase caused the minimum wage to exceed the exempt threshold (Q4 thousand), and that translated into a Minimum ISR withholding of approximately Q2.95 monthly (Q35.38 annually).
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What changes with Decree 13-2026
With the reformthe ISR for those who earn the minimum wageavoiding any retention, no matter how minimal.
The Decree establishes that this exemption will not be temporary. Each year the amount must be updated according to the highest minimum wage in force in the country, guaranteeing that the measure remains in force in the event of future salary increases.
Annual adjustments by the SAT
Article 2 of the reform indicates that the Superintendence of Tax Administration (SAT) will be responsible for updating and publishing the applicable deduction values annually.
In addition, it is determined that the tax benefit will be based on the highest minimum wage, regardless of the economic district.
Extraordinary deduction for 2026
As part of the transition, a extraordinary deduction of Q3,024 without the need for verification for the 2026 fiscal period.
This measure complements the existing deduction of Q48 thousand annually and ensures that no worker who receives the minimum wage is affected by the ISR during this year.