On April 19, 2023, it was published in the Official Gazette the Agreement 1-2023 of the Institute of Recreation of the Workers of the Private Enterprise of Guatemala in which it is agreed to reform Decree 43-92 of the Congress of the Republic of Guatemala.
The following is a brief summary of the same:
All companies and private employers as indicated in Articles 1 and 2 of Decree 1526 amended by Decree 43-92 that are part of the lucrative process of production of goods and rendering of services, are subject to the payment of the recreation tax established if their economic activities are included in the following classifications:
- Exploitation of mines and quarries
- Manufacturing industries
- Generation and supply of electric power.
- Gas and water supply and distribution
- Construction
- Wholesale and retail trade
- Tourism activities, hotels, restaurants, bars and travel agencies.
- Transport, storage and communications
- Financial institutions
- Real estate business and rental activities
- Education and health business activities
- Other business service activities
Private employers subject to the recreation tax must pay it together with the payment of their contributions to the Social Security System.
The following activities are not subject to the payment of the recreation tax:
- Agriculture, cattle raising, hunting and forestry.
- Fishing.
- Higher education (Universities).
- International organizations, entities and extraterritorial organizations.
- Cooperatives, savings and credit banks.
- Foundations.
- Associations and Federations.
The Agreement became effective on April 20, 2023.
For further information please contact our offices.
