Guatemala has a population of more than 17 million people, with strong sectors including manufacturing, agriculture, and industry crucial to the economy. There are several types of business entities that can be established in Guatemala, with varying tax rates based on the type of business.

Labor and Payroll Considerations:

  • Minimum wage is determined by industry:
    – Agriculture minimum wage = GTQ 2,742 per month
    – Non-agriculture minimum wage = GTQ 2,825 per month
    – Export and Maquiladoras (duty/tariff-free factories) minimum wage = GTQ 2,581 per month
  • Employers must include all employees in their monthly reporting to the Social Security institute. New employees must have a tax ID and social security number to be included in the reporting
  • Income tax and social security contributions are withheld from employee pay
  • Employers must contribute to social security
  • Foreign workers need work and residence permits. Companies must sponsor foreign workers, and permits are acquired after a foreigner arrives in Guatemala on a tourist visa

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