The regimen de pequeno contribuyente is Guatemala’s simplified tax system for small businesses, freelancers, and independent workers. If your annual income is under Q465,381.25 (approximately $60,000 USD), this regime lets you pay a flat 5% tax on gross income — no complex deductions, no income tax (ISR), no solidarity tax (ISO), and dramatically simplified accounting requirements. It is by far the most popular tax regime in Guatemala, covering the vast majority of small businesses from market vendors to freelance designers.
The regime underwent a major reform with Decreto 31-2024 (effective April 2025), which tripled the income limit from Q150,000 to Q465,381.25 per year. This change brought hundreds of thousands of additional businesses into the simplified system, making it one of the most accessible small business tax frameworks in Central America.
Registration is free, takes about 10-15 minutes online, and immediately simplifies your tax life. Instead of managing complex accounting books, calculating deductions, and filing multiple tax returns, you file a simple monthly declaration and pay 5% of your income.
Quick summary: Free registration, takes 10-15 minutes online. Pay only 5% monthly on gross income. Exempt from ISR and ISO. Annual income limit: Q465,381.25 (since April 2025). Ideal for freelancers and small businesses.
Information verified April 2026.
Cost
| Item | Cost |
|---|---|
| Registration as pequeno contribuyente | Free |
| Monthly tax | 5% of gross income |
| FEL setup (electronic invoicing) | Free |
| Accounting books (libro de compras y ventas) | Q0.50/page (fiscal stamps) |
Who Qualifies
- Annual income under Q465,381.25 (approximately $60,000 USD or Q38,781/month)
- Individuals (personas individuales) — not available for corporations (sociedades anonimas)
- Any economic activity — services, commerce, production, agriculture
- Includes: freelancers, professionals, tienda owners, food vendors, independent contractors, artisans, taxi drivers, tutors, hairdressers, and more
What You Pay (vs. General Regime)
| Obligation | Pequeno Contribuyente | General Regime |
|---|---|---|
| IVA/Sales tax | 5% on income | 12% IVA (with input credits) |
| ISR (Income tax) | Exempt | 5-7% quarterly or 25% annual |
| ISO (Solidarity tax) | Exempt | 1% quarterly (if assets > Q3M) |
| Accounting | Libro de compras y ventas only | Full double-entry bookkeeping |
| Declarations | Monthly only | Monthly + quarterly + annual |
Requirements
- Active NIT — see our NIT guide
- Access to Agencia Virtual — SAT’s online portal
- Annual income projection under Q465,381.25
- Must be a persona individual (not a corporation)
Step-by-Step Registration
- Get your NIT if you do not have one — see our NIT guide
- Log in to the Agencia Virtual at portal.sat.gob.gt
- Update your RTU — register your economic activity and establishment
- Request regime change to “Pequeno Contribuyente”
- Confirm that your projected annual income is under Q465,381.25
- Enable FEL (electronic invoicing) — mandatory for all pequenos contribuyentes
- Authorize your accounting books — only the libro de compras y ventas is required (Q0.50/page in fiscal stamps)
- Start issuing FPEQ invoices (Factura Pequeno Contribuyente) for your transactions
- File monthly declarations and pay 5% through Declaraguate
Monthly Obligations
As a pequeno contribuyente, your monthly routine is:
- Issue FPEQ invoices for all your sales via FEL
- By the last business day of the following month: File your monthly declaration on Declaraguate
- Pay 5% of your gross monthly income through the bank voucher system
- Record all purchases and sales in your libro de compras y ventas
That is it. No quarterly returns, no annual tax filing, no complex accounting.
Decreto 31-2024 Changes (April 2025)
The reform significantly expanded and modernized the pequeno contribuyente regime:
- Income limit tripled — from Q150,000 to Q465,381.25 per year
- Mandatory NIT on all invoices — no more “consumidor final” invoices
- New DTE types for agricultural and artisanal producers
- Electronic accounting book — SAT is rolling out digital libro de compras y ventas
- Formalization incentive — the higher limit encourages informal businesses to register
Details
If you are tracking near the Q465,381.25 annual limit, you need to plan carefully. SAT monitors cumulative FEL data in real time. If your cumulative invoiced income exceeds the limit, SAT can automatically flag your account and require a regime change within 30 days. The switch to the general regime means you suddenly owe 12% IVA (with credits) and quarterly ISR at 5-7%. Some taxpayers deliberately slow down invoicing near the limit or defer income to the next fiscal year — this is legal, but make sure the underlying transactions are genuine.
Details
General regime businesses cannot credit IVA from FPEQ invoices (pequeno contribuyente invoices). This means some corporate clients may refuse to work with you because your invoices do not generate IVA credits for them. If you depend on corporate clients, consider whether the general regime (where you issue standard FACT invoices with 12% IVA) is better for your business relationships, even though the tax rate is higher. Some pequenos contribuyentes maintain two NITs — one personal and one business — but this requires careful legal advice.
Details
You can switch from the general regime to pequeno contribuyente, but only if your prior year income was under Q465,381.25. The change must be requested before December 31 and takes effect January 1. When you switch, you lose all accumulated IVA credits — they do not carry over to the new regime. If you have significant IVA credits, use them up before switching. Also, you must close out your ISR obligations and settle any pending declarations under the old regime before SAT will approve the change.
From the US (Diaspora Info)
If you are a Guatemalan in the US doing freelance work or running a small business that serves Guatemala:
- Registration is fully online — you can register from anywhere with internet
- Ideal for remote workers — if you provide services to Guatemalan clients from the US, you can register as a pequeno contribuyente and issue invoices electronically
- Monthly declarations from abroad — Declaraguate works globally
- Payment challenge — monthly tax payments must be made at Guatemalan banks. Use online banking (Banrural, Banco Industrial) or have a trusted person pay the boletas
- Consult a Guatemalan accountant — for cross-border situations, a local contador can help you navigate obligations in both countries
Tips & Common Mistakes
File EVERY month, even with zero income. If you had no sales in a month, you still need to file a zero declaration. Missing a single month can result in fines and block your solvencia fiscal.
Monitor your annual income. If you approach Q465,381.25, plan ahead. Exceeding the limit triggers a mandatory regime change to the general system, which involves much more complex accounting and higher tax obligations.
Always ask for your clients’ NIT. Since Decreto 31-2024, all invoices must include the buyer’s NIT. Get in the habit of asking for the NIT before completing any transaction.
Keep your libro de compras y ventas updated. Even though the accounting is simplified, SAT can audit your records. Record every purchase and sale consistently throughout the month — do not wait until declaration time to catch up.
Do not mix personal and business finances. Open a separate bank account for your business transactions. This makes your monthly accounting much cleaner and protects you in case of an audit.
Related SAT Tramites
- NIT Tax ID — required before registering as pequeno contribuyente
- RTU Registration — your tax profile that records your regime
- FEL Electronic Invoicing — mandatory for issuing FPEQ invoices
- Monthly IVA Declaration — your only recurring tax filing
- Accounting Books — authorize the libro de compras y ventas
- Tax Clearance (Solvencia Fiscal) — proves you are current on declarations