What are payroll taxes in Guatemala?

Personal income from employment is taxed at progressive rates of 5% or 7%. Nonresident individuals are taxed via withholding at a flat rate of 15% on Guatemala-source employment or professional services income. Capital gains – Capital gains are taxed at a rate of 10%.

Social insurance system covers all employees, including agricultural workers. Public sector employees are covered by a separate program. The pensions for old age, survivorship, and disability are funded by a small contribution from employees and larger contribution from employers, while 25% is covered by the government.

Social security contributions:

• Social security employer contribution 12.67%
• Social security employee withholding 4.83%

Employers must contribute to the social security system (IGGS) with an overall percentage of:

• Social security 10.67%
• INTECAP 1.00%, entity in charge of the training and training of workers
• IRTRA 1.00%, entity responsible for providing recreation and space to workers and their families