Juan José Arévalo
On April 20, 2026, Government Agreement No. 54-2026, issued by the President of the Republic, was published in the Diario de Centroamérica, thereby approving the Regulations of Decree No. 31-2024 of the Congress of the Republic of Guatemala, the Law for the Integration of the Primary and Agricultural Production Sector. In accordance with its Article 28, the regulations will enter into force 8 days after their publication, that is, on April 28, 2026.
In 2024, the Law for the Integration of the Primary and Agricultural Productive Sector was published with the aim of incorporating all its stakeholders into the tax system through special simplified tax regimes designed to facilitate tax compliance, especially for small producers and marketers. In essence, the Law created a special simplified tax regime for the agricultural sector. However, its implementation was subject to regulations.
I- Primary regime, livestock regime, and applicable tax rates
The Law for the Integration of the Primary and Agricultural Production Sector was enacted with the aim of incorporating all its stakeholders into the tax system through special simplified tax regimes designed to facilitate tax compliance, especially for small producers and marketers. In this context, the law creates two specific regimes:
- Primary regime: which is aimed at those engaged in the production and marketing of agricultural and artisanal products. The regulations set the limit for remaining in this regime at 3,500 times the monthly minimum wage in the non-agricultural sector.
- Livestock Regime: applies to those engaged in the breeding, fattening, development, production, slaughter, processing, and brokerage of livestock, aquatic, and beekeeping products.
The essential difference between the two regimes lies like the regulated economic activities and the types of goods covered by each.
The law also establishes the following tax rates within the special regimes it creates:
- As a rule, a tax of 1.5% on gross sales is established for taxpayers registered in the Primary Regime and the Livestock Regime, as a final payment.
- It provides for a rate of 2% on gross sales for certain export transactions.
- In the case of intermediaries of bovine products under the Livestock Regime, a tax of 10% on profit is set.
Article 18 of the regulations details the obligations of taxpayers registered under the Primary Regime and the Livestock Regime, establishing, among the most relevant, the obligation to register with the Online Electronic Invoicing System (FEL)—the details of which are set forth in Article 20—to maintain an electronic purchase and sales ledger for each regime in which they are registered, and to file both the monthly tax return and the corresponding annual informational return.
II- Requirements and Registration Procedure for Special Regimes
Regarding registration, the regulation elaborates on the provisions of the law and details the specific requirements for producers, marketers, and intermediaries to join the primary regime or the livestock regime with the SAT.
Among other requirements, it mandates the submission of a registration application, a certificate issued by the MAGA, documentation proving the relationship to the property where the activity is conducted, information on estimated production, tax compliance, and employment documentation; furthermore, the SAT must verify the authenticity of the submitted information before authorizing registration. In the case of legal entities, the regulation requires the submission of a certified copy of the register of shareholder-owners, based on registered shares, or of the capital contribution register, as applicable, as part of the registration requirements with the SAT.
If the SAT detects inconsistencies, it will grant a hearing to rectify them within a period of 5 days, and if they are not corrected, it may deny or even revoke the registration.
III- Exclusions from registration in the special regimes
Article 16 of the Regulations elaborates on the basis for exclusion already provided for in the law, clarifies it, and establishes its practical consequences by stipulating that those who market products subject to industrial processing may not register under the special regimes, nor may legal entities classified as Special Taxpayers, which it identifies as “large companies,” for the purposes of the law.
IV- Tax Regularization of Omitted Income
Article 17 of the Regulation addresses the tax regularization of taxpayers who register under these regimes and who have failed to report income earned prior to the law’s effective date. To this end, it establishes that they must file an asset declaration with the SAT and pay a tax equivalent to 5% of the omitted income or of the inventories they include at the start of their accounting records, thereby extinguishing the corresponding tax liability under the terms provided by the regulation.
V- Regularization Period and Transition to the New Regime
In accordance with the law and the regulations, two periods must be distinguished:
- Article 21 of the Law grants a non-extendable period of 180 days, counted from the effective date of the regulations, for the taxpayer or responsible party to file late or amend their returns and make the corresponding payment;
- Article 20 of the Law established a period of no more than three months from the effective date of the Law for taxpayers under the previous regimes to transfer to the Primary Regime or the Livestock Regime. In turn, Article 17 of the Regulations addresses the regularization of income omitted prior to the law’s entry into force through the filing of a sworn statement of assets and the payment of 5% on undeclared income or incorporated inventories.
VI- Conclusion
In summary, the Regulations implement the Law for the Integration of the Primary and Agricultural Sectors by specifying the rules for registration, taxation, regularization, exclusions, and compliance applicable to the Primary Regime and the Livestock Regime. In addition, the 180-day period during which individuals may regularize their tax status regarding omitted income may now begin to run; this period would expire on October 25, 2026.