With 124 votes in favor, the deputies approved Decree 13-2026, through which the modification is made to Decree 10-2012which contains the Tax Update Law. The reform to the law is aimed at exempting all workers who earn the minimum wage in Guatemala from paying Income Tax (ISR).
To carry out this reform, the deputies learned in their third debate and final draft of initiatives 6705 and 6707, through which the elimination of said tax was achieved for all workers who earn the minimum wage in a dependency relationship, corresponding to the different economic activities carried out in the country.
Inside the decree Section “A” of article 72 of Decree 10-2012 is reformed, which establishes the tax basewhich indicates the amount on which the ISR must be calculated. As established, this will be automatically updated on January 1 of each year, when the Executive Body modifies the amount of the minimum wage. It also establishes that the Superintendency of Tax Administration (SAT) must publish the updated values within a maximum period of 5 business days after the official publication of the amount of the minimum wage corresponding to the different economic activities.
According to article 4 of the decree, for the fiscal period from January 1 to December 31, 2026“an extraordinary deduction of Q3 thousand 24 is established, without the need for any verification and in addition to those contemplated in article 72 of the Tax Update Law.”
The decree is made up of five articles, within which these structural reforms are proposed, which will come into force from January 1, 2027.
After the corresponding procedures, the decree will be sent by Congress to the Executive Body for sanction.
They express their support
With the approval of the decree, several deputies from different legislative blocks expressed themselves in favor of the elimination of the tax for Guatemalan workers who earn the minimum wage, since, as they indicated, the payment of the ISR greatly affects their pockets, considering the economic situation that currently exists in Guatemala.
“The objective is that the deductible amount of labor income tax from now on is equivalent to the minimum wage plus a twelve-month bonus, which means that from now on No person who earns the minimum wage is subject to labor income tax, because thanks to the increase in the minimum wage in 2025, By 2026, the ceiling of that deductible amount for personal expenses, which is equivalent to Q48 thousand quetzales, will be exceeded, according to the law that was in force. Thanks to this decree, from now on, no matter how much the minimum wage is increased, it will be completely exempt, like personal expenses, from labor income tax,” stated Deputy Elmer Palencia, second vice president of Congress.
“This initiative has a very clear objective and that is to protect the income of thousands of the country’s workers, which is why a fundamental change was proposed: that the deductions are no longer tied to a fixed amount, but to the reality of the country. In addition, this initiative has a profoundly fair impact, since it guarantees that those who earn the minimum wage do not pay ISR and that is a direct impact on the pockets of Guatemalan families,” said the deputy. Laura Marroquín, from the official block.
Support for institutes by cooperative
In addition to the approval of Decree 13-2026, the deputies also approved Decree 12-2026, through which support is approved for cooperative institutes throughout the country, so that they can also have access to school feeding programs, educational bags and textbooks, this with the purpose of providing students in these educational centers the same opportunities and facilities that public educational establishments have. According to the deputies, cooperative institutes meet the educational needs in parts of the country where public education does not reach, so it is necessary to provide them with the necessary support.
Likewise, the deputies learned in their second reading of the reforms to the Law of the Single Tax on Real Estate (IUSI)this through a privileged motion signed by deputies from different legislative blocks.
The session was suspended without the package of laws demanded by military veterans being known. There are no more sessions called for the week.