This page's default: GTQ 15,000/mo, GTQ 0 deductions → simplified GTQ 750/mo (Art. 44) vs profits GTQ 3,750/mo (25%, Art. 36). The model favors simplified by GTQ 3,000/mo.
Simplified: 5% up to GTQ 30,000 monthly and 7% on the excess. Profits: 25% on (income − deductible costs). The Art. 72 GTQ 48,000 personal deduction is for employment income only. Employee? Use net salary.
Here you face two ISR regimes for lucrative activities (same engine as the Guatemala ISR calculator):
- Profits (Art. 36): annualize, subtract costs and expenses, 25% on profit.
- Optional simplified on income: 5% up to GTQ 30,000 monthly and 7% on the excess.
It is not small-taxpayer status or employee withholding.
Profits, simplified, or small taxpayer
| Path | What it taxes | Tool |
|---|---|---|
| Profits | Net income (revenue − costs and expenses) | This page + Guatemala ISR |
| Optional simplified | Gross income (5%/7%) | This page + Guatemala ISR |
| Small taxpayer | 5% on gross income, SAT ceiling GTQ 500,285 | Guatemala small taxpayer |
| Salaried (employment) | Payroll withholding with GTQ 51,024 in 2026 + IGSS | Guatemala net salary |
If you bill little and fit the SAT ceiling, evaluate small taxpayer first. If you earn a salary as an employee, go straight to Guatemala net salary.
Quick examples (use the calculator above)
| Scenario | Input | Approximate result |
|---|---|---|
| Page default | GTQ 15,000/mo · January 2026 (2026-01-01–2026-01-31) · no deductions | Simplified GTQ 750 vs profits GTQ 3,750 → simplified wins by GTQ 3,000 |
| Consultant above GTQ 30k | GTQ 45,000/mo · no deductions | Simplified GTQ 2,550 vs profits GTQ 11,250 → simplified wins by GTQ 8,700 |
| Business with moderate expenses | GTQ 50,000/mo · GTQ 15,000 deductions | Simplified GTQ 2,900 vs profits GTQ 8,750 → simplified wins by GTQ 5,850 |
| Very high costs | GTQ 50,000/mo · GTQ 40,000 deductions | Simplified GTQ 2,900 vs profits GTQ 2,500 → profits wins by GTQ 400 |
How each regime is calculated
Simplified (I ≤ GTQ 30,000): ISR = I × 5%
Simplified (I > GTQ 30,000): ISR = GTQ 1,500 + (I − GTQ 30,000) × 7%
Profits (Art. 36): monthly ISR = (I − deductions) × 25%
Simplified-regime rates (monthly on gross)
| Monthly income range | Rate | Example |
|---|---|---|
| GTQ 0.01 to GTQ 30,000 | 5% | GTQ 15,000 → GTQ 750/mo |
| Over GTQ 30,000 (excess) | 7% | GTQ 45,000 → GTQ 1,500 + GTQ 1,050 = GTQ 2,550/mo |
Profits-regime rate (Art. 36)
| Taxable base | Rate | Example |
|---|---|---|
| Income − costs and expenses | 25% | GTQ 15,000/mo × 25% = GTQ 3,750/mo |
| Same rate with expenses | 25% | GTQ 50,000 − GTQ 40,000 = GTQ 10,000 × 25% = GTQ 2,500/mo |
Side-by-side by income level (no deductions)
| Monthly income | Simplified | Profits | Winner |
|---|---|---|---|
| GTQ 8,000 | GTQ 400 | GTQ 2,000 | Simplified by GTQ 1,600 |
| GTQ 15,000 | GTQ 750 | GTQ 3,750 | Simplified by GTQ 3,000 |
| GTQ 20,000 | GTQ 1,000 | GTQ 5,000 | Simplified by GTQ 4,000 |
| GTQ 30,000 | GTQ 1,500 | GTQ 7,500 | Simplified by GTQ 6,000 |
| GTQ 45,000 | GTQ 2,550 | GTQ 11,250 | Simplified by GTQ 8,700 |
| GTQ 60,000 | GTQ 3,600 | GTQ 15,000 | Simplified by GTQ 11,400 |
With no expenses, 25% profits is more expensive than 5%/7% simplified. Profits only wins with high deductible costs.
Sensitivity to deductions (GTQ 50,000/mo income)
| Monthly deductions | Simplified (ignores expenses) | Profits | Gap |
|---|---|---|---|
| GTQ 0 | GTQ 2,900 | GTQ 2,720 | Profits by GTQ 180 |
| GTQ 15,000 | GTQ 2,900 | GTQ 1,670 | Profits by GTQ 1,230 |
| GTQ 30,000 | GTQ 2,900 | GTQ 800 | Profits by GTQ 2,100 |
Takeaway: each deductible quetzal under profits saves 5–7 centavos of ISR. With high documented expenses, profits pulls away; with none, the race is close but profits still wins on the personal deduction.
The result is an educational comparison. Formal election, caps, invoicing, and obligations are set by SAT and your accountant. Simplified is usually chosen for administrative simplicity (no expense accounting), not for paying less tax. Do not use this as the sole basis for registering or switching regimes.
How to use it
- Reference monthly gross income (lucrative activities).
- Monthly deductions (if evaluating profits).
- Compare monthly tax and which regime comes out lower in the model.
Need the quarterly tax on business assets or income? That is the Impuesto de Solidaridad (ISO, Decree 73-2008), a quarterly 1% levy on the larger of one quarter of net assets and one quarter of gross income. Estimate it with the Guatemala ISO calculator.
Related calculators
- Guatemala income tax
- Guatemala small taxpayer
- Guatemala net salary
- ISR/VAT withholding
- Guatemala VAT
- VAT credit and debit
- Guatemala ISO
Frequently asked questions
No. Small taxpayer is a different regime (5% on gross income with a yearly SAT ceiling). This comparison only faces profits vs optional simplified from the ISR engine. For the 5% rate and the GTQ 500,285 ceiling use the small taxpayer calculator.
No. Payroll withholding (employment relationship, GTQ 51,024 deduction in 2026 plus IGSS) is estimated in Guatemala net salary.
In the simplified model the tax is estimated on income at the regime rate, not on net profit with itemized deductions.
Profits: GTQ 3,750/mo vs GTQ 750/mo simplified (simplified wins by GTQ 3,000). Art. 36 25% does not use the Art. 72 personal deduction.
Without high costs, 5%/7% on gross usually costs less than 25% on profit. Simplified is also easier to administer. Profits only wins with very high documented costs.
At GTQ 50,000 with GTQ 15,000 expenses, profits is still GTQ 8,750 vs GTQ 2,900 simplified. Only around GTQ 40,000 of costs (GTQ 2,500 vs GTQ 2,900) does 25% start to win. Test your case in the calculator.
Notice
Educational estimate. Not tax advice. Rates, brackets, and regimes change; verify with SAT/accountant. August 2026.
Official sources
- Decree 10-2012, Tax Update Law (SAT: tax laws)
- SAT portal (registration and regime changes)
- Decree 13-2026 (GTQ 3,024 extraordinary deduction for employment income, 2026)