Guatemala Gazettes Decree to Amend Tax Regime for Employment Income

The Guatemalan Gazette May 15 published Decree No. 13-2026, as passed by Parliament April 28 to amend the employment income tax regime. The decree includes measures to: 1) provide a deduction equivalent to up to 12 monthly minimum wages for non-agricultural activities, including the incentive bonus; 2) allow the credit of up to 12,000 Guatemalan quetzales (US$1,574) for VAT paid on personal expenses, subject to substantiation verified by the Tax Administration; 3) specify the automatic annual updating of the deduction amount on Jan. 1 based on changes in the minimum wage rate; 4) require employers, at the beginning of each ...