In Guatemala, companies performing related party transactions must comply with specific Transfer Pricing regulations to ensure these transactions are under the Arm’s Length Principle. The following are the principal obligations and key dates that companies should consider.
Obligations and Due Dates in Guatemala
The following are the main Transfer Pricing obligations and their respective compliance deadlines:
| Type of Obligation | Due Date |
| Affidavit | Until March 31 of the year following the end of the fiscal year. |
| Local File | Subject to the Tax Administration’s requirement. |
| Master File | Not apply |
| Country by Country Report | Not apply |
Companies performing intercompany transactions should ensure compliance with these obligations to avoid penalties and regulatory compliance.
Transfer Pricing Affidavit
The Transfer Pricing affidavit in Guatemala must be filed no later than March 31 of the year following the closing of the fiscal year. This document must include detailed information on the related party transactions to demonstrate that they have been agreed to under market conditions.
According to Article 64 of the Regulations of the Tax Update Law, taxpayers performing related party transactions must attach an annex with detailed information on such transactions, “Annex to the Annual Income Tax Affidavit on Related Parties,” to their annual income tax return.
According to the provisions of Decree No. 10-2012 of the Congress of the Republic. Article 65 of this law provides that “taxpayers must have, when filing the Income Tax affidavit, sufficient information and analysis to support the correct pricing, the amounts of consideration, or the profit margins in their related party transactions, according to the provisions of this book.” This information must be contained in a Transfer Pricing Study
Local Report
Unlike the affidavit, the Local Report must only be filed if requested by the Tax Administration. This report deepens the Transfer Pricing analysis of the local entity, providing additional information on the methodology employed, the comparables applied, and the justification of the market values.
Absence of Master File and Country-by-Country Reports
Unlike other jurisdictions adopted by the OECD guidelines in their entirety, Guatemala does not require filing a Master File or a Country-by-Country Report, which reduces the administrative burden for multinational companies operating in the country.
Implications for Companies
Companies with intercompany operations in Guatemala must maintain adequate documentation to respond to any Tax Administration’s requirements. In addition, they must be prepared to support their related party transactions under the Transfer Pricing methods established in the Guatemalan regulations.
It should be noted that Article 65, numeral 2, Decree Number 10-2012, establishes that “the taxpayer must provide the documentation required by the Tax Administration within a term of twenty (20) days from the receipt of the requirement. This obligation is established without affecting the Tax Administration’s power to request additional information necessary to perform its functions.”
Conclusion
Companies in Guatemala must ensure compliance with their Transfer Pricing obligations and maintain clear and accurate documentation. The correct application of these requirements reduces tax risks and improves transparency and regulatory compliance.
Get Advice from TPC Group!
At TPC Group, we are Transfer Pricing specialists and provide expert advice for your company to comply with tax regulations in Guatemala. Our team is at your disposal to assist you in preparing the proper documentation and avoid tax risks.
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Sources: Ministério da Fazenda da Guatemala - Decreto 10-2012 / Superintendencia de Administración Tributaria (SAT) da Guatemala - Guia de Preços de Transferência