The so-called indirect taxes come from the consumption of goods and services and are indirect because these are transferred to each link in the production chain; that is to say from importer to products, from this to distributor and from this to the final consumer who will be the true taxpayer.
This is explained by the Superintendence of Tax Administration (SAT), which breaks down indirect taxes as follows:
- Value Added Tax (VAT)
- Tax on the Distribution of Crude Oil and Petroleum-Derived Fuels
- Tax on the Distribution of Distilled Alcoholic Beverages, Beers and other Fermented Beverages
- Tax on Tobacco and its products
- Cement Distribution Tax
The tax that is collected the most
Abelardo Medina Bermejo, coordinator of macro fiscal analysis of the Central American Institute of Fiscal Studies (Icefi) commented that from the main economic activity, the businessman delivers taxes to the fiscal funds.
This does not mean that it is the companies that pay these taxes, but that the activities related to them are the ones that produce the collection.
In Guatemala, Commerce is the most important activity in the country and is the sector that pays the most taxes, But it is not that companies pay it, but that it is paid by consumers who purchased goods and services in commercial activities.
In this sense, commerce is the largest tax collection activity in the country because the most important tax is VAT or Value Added Tax, paid by consumers.
Medina explained that this does not mean that merchants are the ones who pay the highest amount of taxes in the country, and insisted that it means that it is the consumers who buy goods and services from commerce and industry who pay the most taxes.
That is to say, the company must only comply with the obligation to transfer this and other indirect taxes to the SAT.
“If we add up what is collected in commerce and industry, it results in 60% of the taxes paid by ordinary Guatemalans through the acquisition of goods and services.”
Abelardo Medina Bermejo, coordinator of macro fiscal analysis of Icefi
ISR and ISO are paid by companies
According to Medina, to know how much businessmen really paid, for the most part, just look at the data on the Income Tax (ISR) and the Solidarity Tax (ISO). “All other taxes are paid by consumers,” she remarked.
According to official figures from the Tax Administration, this was what the productive sectors paid in 2023; For example, this was what those who contributed the most to the country’s economic growth rate paid:
- Agriculture, forestry, hunting and fishing
ISR Q937 million 253 thousand 147.75
ISO Q325 million 473 thousand 172.63
- Manufacturing industries
ISR Q5 thousand 277 million 505 thousand 610.47
ISO Q1 thousand 969 million 806 thousand 601.52
- Wholesale and Retail; repair of motor vehicles and motorcycles
ISR Q7 thousand 50 million 413 thousand 720.60
ISO Q2 thousand 660 million 603 thousand 842.80
- Transportation and storage
ISR Q1 thousand 34 million 268 thousand 189.97
ISO Q233 million 304 thousand 811.10
- Supply of electricity, gas, steam and air conditioning
ISR Q1 thousand 072 million 224 thousand 061.83
ISO Q194 million 942 thousand 852.61
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