Guatemala Implements New Simplified Tax Regimes for Agricultural and Primary Sectors

The Guatemalan government, through the Ministry of Finance and the Superintendence of Tax Administration (SAT), has taken a significant step towards modernizing its tax system with the publication of the regulations for Decree 31-2024. This new framework introduces simplified tax regimes for the primary and agricultural sectors, a move long awaited by producers and small business owners who have often struggled with complex tax compliance.

This initiative, officially entering into force eight days after its publication on April 20, 2026, aims to foster growth and formalization within key sectors of our economy. By establishing a clear and simplified tax structure, the government seeks to encourage greater participation in the formal market, particularly for those supplying essential goods to supermarkets, municipal markets, and restaurants. The distinction between the 'Régimen Primario' (for agriculture and crafts) and the 'Régimen Agropecuario' (for livestock and aquaculture) demonstrates a nuanced approach to the diverse needs of these industries.

From our perspective at Prensa Libre, this is a crucial development for Guatemala's economic landscape. The simplified rates – 1.5% on local sales to specified outlets and 2% on exports – offer a predictable and manageable tax burden. This clarity is vital for businesses to plan and invest, moving away from the uncertainty that has often hampered growth. While the regulations also stipulate that other sales and services fall under the general VAT and ISR regimes, the core intent is to ease the tax process for primary production and trade, which form the backbone of our nation's commerce. We will continue to monitor the implementation and impact of these new tax regimes closely.