Annual Income Tax (ISR) Declaration in Guatemala (2026)

The declaracion anual de ISR (annual income tax declaration) is the year-end tax filing for Guatemalan taxpayers registered under the Regimen Sobre las Utilidades de Actividades Lucrativas (Regime on Net Profits from Business Activities). This regime taxes 25% of net profit — your total income minus all legally deductible business expenses. It is the regime of choice for businesses with high operating costs relative to revenue, where the 25%-on-profit calculation results in lower taxes than the 5-7% simplified quarterly regime.

The annual declaration requires complete financial statements — balance sheet, income statement, and supporting documentation for all deductions. This is not a simple form you can fill out in 10 minutes. You need either a professional accountant or significant bookkeeping expertise. Most businesses in this regime work with a Perito Contador or Contador Publico y Auditor (CPA) year-round to maintain the accounting records needed for the annual filing.

The deadline is firm: March 31 of the year following the tax period. Late filings incur penalties and interest, and can trigger SAT audits.

Quick summary: For the Regimen Sobre Utilidades only. Tax rate: 25% on net profit. Deadline: March 31. Requires complete financial statements. Filed on Declaraguate using form SAT-1341. Professional accounting support is essential.

Information verified March 2026.

Tax Rate

Requirements

• NIT activo registered under Regimen Sobre Utilidades
• Complete financial statements for the fiscal year:
  • Balance general (balance sheet)
  • Estado de resultados (income statement)
  • Estado de flujo de efectivo (cash flow statement)
• All deductible expenses supported by valid FEL invoices
• Access to Declaraguate
• Form SAT-1341 (Declaracion Jurada Anual del ISR)

Key Deadlines

Step-by-Step Process

1. Close your annual accounting — finalize all entries for the fiscal year with your accountant
2. Prepare financial statements — balance sheet, income statement, and cash flow
3. Calculate taxable income: Total income minus deductible expenses = net profit
4. Calculate ISR: 25% of net profit
5. Deduct quarterly ISR advance payments made during the year (closures parciales)
6. Determine remaining ISR to pay (or overpayment to carry forward)
7. Go to declaraguate.sat.gob.gt
8. Log in and select form SAT-1341
9. Enter financial data — the form includes sections for income, expenses, assets, and liabilities
10. Validate and freeze the form
11. Generate payment voucher for any ISR balance due
12. Pay at an authorized bank before March 31

Deductible Expenses

The following expenses are generally deductible for ISR purposes (must be supported by valid FEL invoices):

• Salaries and employee benefits — including IGSS contributions, bonifications, aguinaldo
• Rent — office, warehouse, commercial space
• Utilities — electricity, water, phone, internet
• Professional services — accountant, lawyer, consultant fees
• Depreciation — fixed assets (vehicles, equipment, machinery)
• Business insurance — property, liability, vehicle
• Interest on business loans — from banks and financial institutions
• Supplies and materials — directly related to business operations
• Travel and transportation — for business purposes
• Marketing and advertising — promotional expenses

NOT Deductible:

• Personal expenses
• Expenses without valid FEL invoices
• Fines and penalties
• Donations exceeding 5% of net income (donations to registered institutions are partially deductible)
• Expenses related to exempt income

ISR Calculation Example

A small business with Q1,200,000 in annual income and Q900,000 in deductible expenses:

Total Income:                Q1,200,000
Deductible Expenses:        -Q900,000
Net Profit:                  Q300,000
ISR at 25%:                  Q75,000
Quarterly advances paid:    -Q60,000
ISR Balance to Pay:          Q15,000

Quarterly Advance Payments (Cierres Parciales)

Taxpayers under the utilidades regime make quarterly advance payments based on estimated annual profit:

• These are calculated as a percentage of projected annual ISR
• Paid within 10 business days after each quarter end
• Deducted from the final annual ISR liability
• If advance payments exceed the final ISR, the excess carries forward as a credit

From the US (Diaspora Info)

• If you own a Guatemalan business — even from abroad, you are responsible for the annual ISR filing if the business is under the utilidades regime
• Hire a Guatemalan CPA — this is essential. Annual ISR requires professional accounting that only a local accountant familiar with SAT requirements can provide
• Declaraguate works remotely — the filing itself can be done from anywhere, but the accounting preparation needs local expertise
• Rental income — if you own rental property in Guatemala, the rental income is taxable under ISR. Your accountant should include it in the annual declaration
• Power of attorney — your accountant can file on your behalf with proper authorization

Tips & Common Mistakes

1. Start preparing in January. Do not wait until mid-March to close your books. Give your accountant enough time to prepare accurate financial statements and identify any issues.

2. Keep ALL FEL invoices. Every deductible expense must be backed by a valid FEL invoice. Expenses without invoices are not deductible — period. This can significantly increase your tax bill.

3. Reconcile quarterly advances. Make sure your accountant tracks all quarterly advance payments. If they are not properly deducted, you will overpay on the annual declaration.

4. Consider regime switching. Each December, evaluate whether the utilidades regime (25% on profit) still makes sense versus the simplified regime (5-7% on income). Changes take effect the following January.

5. File on time — March 31 is non-negotiable. Late filing triggers automatic fines (Q100 per form), plus interest on any unpaid ISR. SAT has been increasing enforcement, and late filers are common audit targets.

Official Links

• Declaraguate
• SAT — Agencia Virtual
• SAT — ISR Information
• SAT Call Center: 1544