Back to index
V0256-16 25 January 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · exención de dividendos

Dividend exemption applicable if foreign tax is analogous and effective rate exceeds 10%

A company has queried whether a Guatemalan tax on income from profitable activities is analogous to Corporate Tax for the purposes of dividend exemption. The DGT has ruled that it is analogous, but the exemption will depend on the effective tax rate being higher than 10%.

The question raised

Question raised 1. Whether, when a company resident in Guatemala pays Income Tax under the optional simplified regime based on income from lucrative activities, it can be considered subject to or not exempt from a foreign tax of an identical or analogous nature to Corporate Income Tax.

The DGT's ruling

The foreign tax is of an identical or analogous nature to Corporate Income Tax, even though its object is income. To comply with the requirement of Article 21.1.b) of the LIS, if the entity opts for a regime with a nominal rate lower than 10%, the requirement shall be deemed met provided that the effective rate (amount paid divided by the accounting profit before tax) is greater than 10%.

Email
Contact