- Updated
- October 2025
- Sections
- 15
- Questions
- 47
Key Facts
Core Framework
Tax Update Law, Book I, Income Tax, Chapter VI, Special valuation rules between related parties, arm´s length principle, article 54, Decree Number 10-2012. DECRETO-No.-10-2012-LEY-DE ACTUALIZACION-TRIBUTARIA.pdf
Portal SAT | Repositorio Virtual - Guatemala (available in Spanish only)
The OECD Transfer Pricing Guidelines do not have a legal binding effect under Guatemala’s domestic transfer pricing framework. Despite the absence of a legal reference to the OECD Transfer Pricing Guidelines, the Superintendencia de Administración Tributaria in Guatemala (SAT) applies these in practice. Furthermore, the SAT issued in 2016 technical guidelines for taxpayers which state that the OECD Transfer Pricing Guidelines can be used as a reference for interpretation.
Tax Update Law, Book I, Income Tax, Chapter VI, Special valuation rules between related parties, article 58. DECRETO-No.-10-2012-LEY-DE ACTUALIZACION-TRIBUTARIA.pdf
The domestic law largely follows the guidance on comparability in Chapter III of the OECD Transfer Pricing Guidelines.
The domestic transfer pricing framework does not contain any specific preference for domestic comparables over foreign comparables. In practice, there is no or very limited information on domestic comparables because domestic companies are not obliged to publish financial information.
The domestic transfer pricing framework does not explicitly prohibit the use of secret comparables. However, in practice the tax administration does not use secret comparables.
Government Agreement Number 213-2013, article 47
Article 47 of Government Agreement Number 213-2013 establishes that if there is more than one comparable uncontrolled transaction, the full range of arm's length will be derived from the results of all comparable uncontrolled transactions that achieve a similar level of comparability and reliability. The interquartile range provides an acceptable measure of the arm's length range. The interquartile range is defined as the range between the 25th percentile and the 75th percentile of the results derived from the uncontrolled comparable operations. If the results of a controlled transaction fall outside the arm’s length range, the Tax Administration may make adjustments to align the controlled taxpayer’s results to the most appropriate point within the arm’s length range, unless the taxpayer can demonstrate with new evidence that their results fall within the interquartile range established by a reliable uncontrolled comparable price. Otherwise, the adjustment will typically be made by aligning the price to the median value of all results.
Documentation
TP Methods
- CUP
- Resale Price
- Cost Plus
- TNMM
- Profit Split
- Other
Selection: Most appropriate method
Dispute Resolution
Tax Update Law, Book I, Income Tax, Chapter VI Special valuation rules between related parties, article 63, Decree Number 10-2012. Tax Code, Decree number 6-91 ARTICLE 145 "A".
Article 145 A of the Tax Code, Decree number 6-91 includes a prior mechanism for resolving tax disputes. The Tax Administration, after verifying the declarations, assessments, supporting documentation, and tax payment documents, and if it finds inconsistencies, errors, actions, or omissions regarding the determination of the tax liability... after the auditors who carried out the review have submitted their report establishing the relevant inconsistencies and before granting a hearing, may summon the taxpayer or responsible party to correct them. In relation to APAs, taxpayers may request the Tax Authority to determine the value of transactions between related parties prior to their execution. This request must be accompanied by a proposal from the taxpayer based on the value that independent parties would have agreed upon in similar transactions. The Tax Authority may approve, deny, or modify the proposal with the taxpayer's acceptance. This agreement takes effect with respect to transactions carried out after the date on which it is approved and is valid during the settlement periods specified in the agreement itself, without exceeding four (4) periods following the date on which it is approved. The proposal may be deemed rejected after thirty (30) days have elapsed from the request.
Tax Update Law, Book I, Income Tax, Chapter VI Special valuation rules between related parties, article 63, Decree Number 10-2012. Tax Code, Decree number 6-91 ARTICLE 145 "A".
Article 145 A of the Tax Code, Decree number 6-91 includes a prior mechanism for resolving tax disputes. The Tax Administration, after verifying the declarations, assessments, supporting documentation, and tax payment documents, and if it finds inconsistencies, errors, actions, or omissions regarding the determination of the tax liability... after the auditors who carried out the review have submitted their report establishing the relevant inconsistencies and before granting a hearing, may summon the taxpayer or responsible party to correct them. In relation to APAs, taxpayers may request the Tax Authority to determine the value of transactions between related parties prior to their execution. This request must be accompanied by a proposal from the taxpayer based on the value that independent parties would have agreed upon in similar transactions. The Tax Authority may approve, deny, or modify the proposal with the taxpayer's acceptance. This agreement takes effect with respect to transactions carried out after the date on which it is approved and is valid during the settlement periods specified in the agreement itself, without exceeding four (4) periods following the date on which it is approved. The proposal may be deemed rejected after thirty (30) days have elapsed from the request.
Simplifications
Special Topics
Please note that, in practice, the SAT applies the OECD Transfer Pricing Guidelines as a technical reference.
The domestic transfer pricing framework does not have specific guidance specific on hard-to-value intangibles. The SAT can use the OECD Transfer Pricing Guidelines to audit and determine the value of transactions involving the transfer of intangibles, including the guidance on HTVI.
Tax Update Law, Book I, Income Tax, Chapter VI, Special valuation rules between related parties, Specific treatment applicable to intra group services transactions, article 62, Decree Number 10-2012. DECRETO-No.-10-2012-LEY-DE ACTUALIZACION-TRIBUTARIA.pdf
The domestic transfer pricing framework does not have specific guidance on financial transactions. The SAT can use the OECD Transfer Pricing Guidelines to audit and determine the value of financial transactions.
Full OECD Questionnaire
Legal ReferenceTax Update Law, Book I, Income Tax, Chapter VI, Special valuation rules between related parties, arm´s length principle, article 54, Decree Number 10-2012. DECRETO-No.-10-2012-LEY-DE ACTUALIZACION-TRIBUTARIA.pdf
Legal ReferencePortal SAT | Repositorio Virtual - Guatemala (available in Spanish only)
The OECD Transfer Pricing Guidelines do not have a legal binding effect under Guatemala’s domestic transfer pricing framework. Despite the absence of a legal reference to the OECD Transfer Pricing Guidelines, the Superintendencia de Administración Tributaria in Guatemala (SAT) applies these in practice. Furthermore, the SAT issued in 2016 technical guidelines for taxpayers which state that the OECD Transfer Pricing Guidelines can be used as a reference for interpretation.
Legal ReferenceTax Update Law, Book I, Income Tax, Chapter VI, Special valuation rules between related parties, article 56, Decree Number 10-2012. DECRETO-No.-10-2012-LEY-DE ACTUALIZACION-TRIBUTARIA.pdf
Two people are considered related parties, between a resident person in Guatemala and a resident abroad, when the following cases occur: Definition of related parties. A. For the purposes of this book, two persons are considered related parties, between a person resident in Guatemala and a person resident abroad, when the following cases occur: 1. When one of them directs or controls the other, or owns, directly or indirectly, at least twenty-five percent (25%) of its share capital or voting rights, whether in the national or foreign entity. 2. When five or fewer persons direct or control both related parties, or jointly own, directly or indirectly, at least twenty-five percent (25%) of the share capital or voting rights of both persons. 3. In the case of legal persons, whether resident in Guatemala or foreign, belonging to the same business group. In particular, for these purposes, two companies are considered to be part of the same business group if one of them is a partner or participant in the other and is in relation to the other in any of the following situations: a. Own the majority of the voting rights. b. It has the power to appoint or dismiss the members of the administrative body or that through its legal representative intervenes decisively in the other entity. c. Can dispose, by virtue of agreements entered into with other partners, of the majority of the voting rights. d. Has appointed exclusively with its votes the majority of the members of the administrative body. and. e. The majority of the members of the administrative body of the controlled legal entity, whether they are representatives, managers or members of the administrative body of the parent company or of another company dominated by it. When two companies are each part of a business group with respect to a third company in accordance with the provisions of this section, all these companies make up a business group. For the purposes of paragraph A., a natural person is also considered to hold a share in the share capital or voting rights when the ownership of the participation or shares, directly or indirectly, corresponds to the spouse or person united by kinship, by consanguinity up to the fourth degree or by affinity up to the second degree. The term person in this section refers to natural persons, legal entities and other organizations with or without legal personality. B. Related parties are also considered: 1. A person resident in Guatemala and a distributor or exclusive agent of the same resident abroad. 2. A distributor or exclusive agent resident in Guatemala of an entity resident abroad and the latter. 3. A person resident in Guatemala and his or her permanent establishments abroad. 4. A permanent establishment located in Guatemala and its parent company resident abroad, another permanent establishment of the same or a person related to it.
Legal ReferenceTax Update Law, Book I, Income Tax, Chapter VI, Special valuation rules between related parties, article 59, Decree Number 10-2012. DECRETO-No.-10-2012-LEY-DE ACTUALIZACION-TRIBUTARIA.pdf
The legislation provides for a specific method for the valuation of import or export transactions of goods that qualify as “commodities” (see question 6 below).
- CUP (provided)
- Resale Price (provided)
- Cost Plus (provided)
- TNMM (provided)
- Profit Split (provided)
- Other (provided)
Legal ReferenceTax Update Law, Book I, Income Tax, Chapter VI, Special valuation rules between related parties, arm´s length principle, article 59, Decree Number 10-2012. DECRETO-No.-10-2012-LEY-DE ACTUALIZACION-TRIBUTARIA.pdf
Most appropriate method
- Hierarchy of methods (not selected)
- Most appropriate method (selected)
- Other (if so, please explain) (not selected)
Legal ReferenceTax Update Law, Book I, Income Tax, Chapter VI, Special valuation rules between related parties, article 60, Method for valuation for imports or exports of goods.
In the following cases, transactions between related parties are valued as follows: • Imports: The price cannot exceed the international market price on the purchase date at the place of origin. • Exports: The price is based on international market research according to the contract terms as of the shipment date, unless proven that the deal was closed earlier. The contract date is only valid if reported to the tax authority within three days of signing. • If an intermediary is involved in an export transaction and lacks a real and effective presence in its country or does not primarily engage in intermediation, it is considered a related party under the law. • Prices are converted to Quetzales using the exchange rate on the day the foreign currency is settled in a local bank; if not available, the reference rate on the shipment or contract date is applied. The legislation in Guatemala does not contain provisions that specify which goods or products are considered as “commodities” for purposes of applying this method.
Legal ReferenceTax Update Law, Book I, Income Tax, Chapter VI, Special valuation rules between related parties, article 58. DECRETO-No.-10-2012-LEY-DE ACTUALIZACION-TRIBUTARIA.pdf
The domestic law largely follows the guidance on comparability in Chapter III of the OECD Transfer Pricing Guidelines.
The domestic transfer pricing framework does not contain any specific preference for domestic comparables over foreign comparables. In practice, there is no or very limited information on domestic comparables because domestic companies are not obliged to publish financial information.
The domestic transfer pricing framework does not explicitly prohibit the use of secret comparables. However, in practice the tax administration does not use secret comparables.
Legal ReferenceGovernment Agreement Number 213-2013, article 47
Article 47 of Government Agreement Number 213-2013 establishes that if there is more than one comparable uncontrolled transaction, the full range of arm's length will be derived from the results of all comparable uncontrolled transactions that achieve a similar level of comparability and reliability. The interquartile range provides an acceptable measure of the arm's length range. The interquartile range is defined as the range between the 25th percentile and the 75th percentile of the results derived from the uncontrolled comparable operations. If the results of a controlled transaction fall outside the arm’s length range, the Tax Administration may make adjustments to align the controlled taxpayer’s results to the most appropriate point within the arm’s length range, unless the taxpayer can demonstrate with new evidence that their results fall within the interquartile range established by a reliable uncontrolled comparable price. Otherwise, the adjustment will typically be made by aligning the price to the median value of all results.
Legal ReferenceGovernment Agreement Number 213-2013, article 40
Article 40 of Government Agreement 213-2013, Regulation of the Tax Update Law, establishes that: (...) If there are differences, the corresponding reasonable adjustments must be made, which are those that eliminate distortions so that the transactions are comparable, provided that the method and the reasons for this adjustment can be supported by documentation.
Please note that, in practice, the SAT applies the OECD Transfer Pricing Guidelines as a technical reference.
Please note that, in practice, the SAT applies the OECD Transfer Pricing Guidelines as a technical reference.
The domestic transfer pricing framework does not have specific guidance specific on hard-to-value intangibles. The SAT can use the OECD Transfer Pricing Guidelines to audit and determine the value of transactions involving the transfer of intangibles, including the guidance on HTVI.
Please see response to question 14.
Please see response to question 14.
Legal ReferenceTax Code, Decree number 6-91 ARTICLE 47. Prescription. The right of the Tax Administration to make verifications, adjustments, rectifications or determinations of tax obligations, liquidate interest and fines and demand their compliance and payment from taxpayers or those responsible, must be exercised within a period of four years. https://portal.sat.gob.gt/portal/biblioteca-en linea-sat/legislacion-tributaria/
The statute of limitations for all transactions, including transfer pricing issues, is four (4) years.
Legal ReferenceTax Update Law, Book I, Income Tax, Chapter VI, Special valuation rules between related parties, Advance pricing agreement, article 63, Decree Number 10-2012.
Currently, only unilateral APAs are available, because Guatemala does not have any tax treaties. The taxpayers can request unilateral APA for any transactions of transfer pricing.
The Guatemala SAT provides training to its tax officials on the application of transfer pricing rules.
Yes (e.g intangible amortization HTVI)
Legal ReferenceTax Update Law, Book I, Income Tax, Chapter VI, Special valuation rules between related parties, Specific treatment applicable to intra group services transactions, article 62, Decree Number 10-2012. DECRETO-No.-10-2012-LEY-DE ACTUALIZACION-TRIBUTARIA.pdf
The domestic transfer pricing framework does not contain a simplified approach for low value-adding intra-group services. However, in practice, the tax administration applies the OECD Guidelines Transfer Pricing. In the cases resolved for the purpose of intragroup services, we have applied the OECD Guidelines on Transfer Pricing as a technical reference framework.
Legal ReferenceTax Code, Decree number 6-91, article 5
In some cases, the tax administration applies the principle of onerousness, established in the Tax Code, Decree Number 6-91, is used.
The domestic transfer pricing framework does not have specific guidance on financial transactions. The SAT can use the OECD Transfer Pricing Guidelines to audit and determine the value of financial transactions.
Legal ReferenceTax Update Law, Book I, Income Tax, article 24, Decree Number 10-2012.
Guatemalan legislation establishes a rule of sub-capitalization in which it states the following: (...) Without prejudice to other regulations regarding interest deduction, the deductible amount for this concept shall not exceed the value obtained by multiplying the interest rate referred to in the following paragraphs by an amount of three times the average total net assets presented by the taxpayer in their annual sworn declaration.
- Master file consistent with Annex I to Chapter V of the TPG (not selected)
- Local file consistent with Annex II to Chapter V of the TPG (selected)
- Country-by-country report consistent with Annex III to Chapter V of the TPG (not selected)
- Specific transfer pricing returns (separate or annexed to the tax return) (selected)
- Other (specify): (not selected)
Legal ReferenceTax Update Law, Book I, Income Tax, Chapter VI Special valuation rules between related parties, article 63, Decree Number 10-2012. Tax Code, Decree number 6-91 ARTICLE 145 "A".
Article 145 A of the Tax Code, Decree number 6-91 includes a prior mechanism for resolving tax disputes. The Tax Administration, after verifying the declarations, assessments, supporting documentation, and tax payment documents, and if it finds inconsistencies, errors, actions, or omissions regarding the determination of the tax liability... after the auditors who carried out the review have submitted their report establishing the relevant inconsistencies and before granting a hearing, may summon the taxpayer or responsible party to correct them. In relation to APAs, taxpayers may request the Tax Authority to determine the value of transactions between related parties prior to their execution. This request must be accompanied by a proposal from the taxpayer based on the value that independent parties would have agreed upon in similar transactions. The Tax Authority may approve, deny, or modify the proposal with the taxpayer's acceptance. This agreement takes effect with respect to transactions carried out after the date on which it is approved and is valid during the settlement periods specified in the agreement itself, without exceeding four (4) periods following the date on which it is approved. The proposal may be deemed rejected after thirty (30) days have elapsed from the request.
- Rulings (not selected)
- Enhanced engagement or cooperative compliance programmes (not selected)
- Advance Pricing Agreements (APA) (selected)
- International Compliance Assurance Programme (ICAP) (not selected)
- Mutual Agreement Procedures (not selected)
- Other (please specify): (selected)
- In-scope tested parties resident within the jurisdiction can elect to apply the simplified and streamlined approach (i.e. safe harbour) (not selected)
- In-scope tested parties resident within the jurisdiction are required to follow the simplified and streamlined approach for in-scope qualified transactions and tax administrations are allowed to impose the application of the simplified and streamlined approach to in-scope qualified transactions of tested parties resident within their jurisdiction (i.e. rule) (not selected)
- N/A (selected)
- 20% (not selected)
- 30% (not selected)
- Other (please specify) (not selected)
- N/A (selected)
Yes. Year-end adjustments are allowed.
Guatemala does not have any tax treaty agreements.
- Article 7 as it read before 2010. (not selected)
- Article 7 as it reads after 2010. (not selected)
- Other (please provide additional details) (selected)
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