If you are wanting to do business in Guatemala, you have to know about taxation for a LLC which is the most common company structure in Guatemala.
The country imposes corporate level taxation from outside the country independently then it it was attached to local operations. Thepredominant standard rate for offshore income, from our research, and your results may vary, is 0%. GT will have certain exemptions to transfer in income earned abroad remitted back. Taxes are reasonable in Guatemala because the highest corporation tax rateis 25%. This ranks Guatemala as 98th overall with regards to CIT globally. . .
The VAT rate in GT is 12.00%, that ranks Guatemala as 98th overall with regards to value added tax rate worldwide. In terms of other taxation, an employer will contribute 1,267.00% to the equivalent of a social security fund and an employee will contribute 4.83%. The overall complexity of the tax system is medium. This is measured by average time to comply with a country's labor tax requirements is as it is 126hours. Contributing to this is the number of yearly labor tax payments, which is 14 in GT.
Thin capitalisation standards aren't officially enacted. This refers to any type of laws on given company with respect todebt-to-asset ratios. A dividend is a distribution of a portion of an earnings of the legal entity, voted on by the board of directors, to shareholders.Dividends can be one of the following shares of stock, cash payments, or other property. The capital gains rate in GTis 0%. A capital gains tax is levied on the profits that a corporation or natural person realizes when they sell sells a capital asset for a price that is higher than the purchase price.
The interest witholding rate is estimated at 0This should be interpreted usually that the relevant tax authorities expects relevant legal entities to withold 0 of payments offshore for for interest payments. The dividends witholding rate is 0This means that the tax authorities expects to pay tax on at least 0 of payments offshore for for dividend payments. The royalties witholding rate 0 This means that the relevant tax authorities expects relevant legal entities to automatically withhold 0 of payments offshore for on royalty payments.
There is no known tax on wealth in Guatemala. There are inheritance taxes in Guatemala placed on an estate. We are not aware of any frequently implemented research and development tax incentives in GT.
The above is not tax or legal advice for your individual facts and circumstance. We are able to to point you to a lawyerin Guatemala who can get you an answer. Ready to get started? Click the free consultation button above.
It takes approximately 31 hours to file and prepare documents for a Guatemala Civil Law.
The corporate tax is approximately 25% which is 98 in the world.
Owners of a company in Guatemala are not allowed to carry back a loss .
The vat rate in Guatemala is 12% which ranks 61 in the world.
Thin capitalization rules are in effect. A company is thinly capitalised when there is a greater proportion of debt than equity. The minimum capitalization for a Guatemala Civil Law is 5,000.
A corporate director is permitted, meaning this country is a good option if you are setting up a structure where you want to protect director liability.
The directors are disclosed in the public registry of Guatemala, Aragon & Aragon . Shareholders are not disclosed in the Aragon & Aragon .
Typically companies take 4 weeks to setup and there are 1 director(s) required and 1 shareholder(s) required at the time of incorporation.
Overall we think Guatemala is a ok option and have given it a score of 55 as an IO score, using the Incorporations.IO proprietary formula.
We can help you form a company in Guatemala. Click the button above for a no-obligation quote. We will provide you with all the necessary documents to open a bank account as well as a registered office in Guatemala, which is required by law.
We can help you with your incorporations needs for an initial payment of just $1000.
Easy Step by Step Process:
The standard process typically takes between two (2) to three (3) weeks depending on when we receive all the required information from you. Once we receive your information, we will email you a complete set of documents for your review within 3 working days upon confirmation of payment. After executing the documents, you will need to mail them to us and we will formally submit your application for filing with the Registry. The Registry will then take about 3-8 working days to process the incorporation and produce certificates necessary for opening your bank account.
Applying for Your Bank Accounts:
Incorporations.IO maintains close working relationship within our extensive network of partner banks to help you apply for and receive banking services that are most appropriate to your specific situation. From the time of verification of incorporation it can take (1) one week to (2) two weeks to apply for and receive a bank account. We work primarily with banks that allow for remotely opened accounts to ensure you are ready to do business as soon as possible.
Applying for Payment Processing:
We include introductions to payment processors or merchant accounts with all of our incorporation services. Whether you just need standard credit card processing or specialized services for high risk processing, we have partners that can assist you and are happy to help you with introductions that can empower your business.
Start Online or via Phone:
We can get started for you whenever you are ready via a US$1000 initial payment via credit card. I get notified whenever a payment is made here and would send out the welcome letter and initial forms we would need within 12 hours. If you prefer, we can also process via a phone or Skype call.