
Guatemala
Guatemala is composed of 22 departments. They are Alta Verapaz, Baja Verapaz, Chimaltenango, Chiquimula, El Progreso, Escuintla, Guatemala, Huehuetenango, Izabal, Jalapa, Jutiapa, Peten, Quetzaltenango, Quiche, Retalhuleu, Sacatepequez, San Marcos, Santa Rosa, Solola, Suchitepequez, Totonicapan, and Zacapa.
The vast majority of the populace resides in the southern half of the country, particularly in the mountainous regions; more than half of the population lives in rural areas.
Thank you contributors of the Guatemala WikiFleet page:
BDO, ALD Automotive, Wheels Inc., Arrend Leasing
Chapter 1: Economic and business environment
Demographics | 18.7 million people (2022) Guatemala is a predominantly poor country with a large indigenous population which is disproportionately affected. It is the most populous country in Central America and has the highest fertility rate in Latin America. It also has the highest population growth rate in Latin America, which is likely to continue because of its large reproductive-age population and high birth rate. Almost half of Guatemala's population is under age 19, making it the youngest population in Latin America.
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Capital | Guatemala City (population of 995,393 in 2018) |
Major cities | 1. Guatemala City 995,393 |
Languages | Spanish (official) 68.9%, Maya languages 30.9% |
GDP | US$86 billion (2021, up 11% year-over-year |
Unemployment rate | 2.2% (2021) |
Main industries | sugar, textiles and clothing, furniture, chemicals, petroleum, metals, rubber, tourism Agriculture |
Currency | Guatemalan Quetzal (GTQ) |
Interest rate | benchmark interest rate 3% (October 2022) |
Political key info | Alejandro Eduardo Giammattei Falla is the President of Guatemala. He won in the 2019 election and assumed office on January 14, 2020. |
Inflation | 9.7% (October 2022) |
Chapter 2 : Automotive market, segments & sales
Total Car park | In 2020, just over four million vehicles were in the country
The rest are carts, trailers, tow-trucks, tractors, etc. |
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New vehicle registrations (Cars, LCV, Trucks) | 2020 2021 source: focus2move |
Top 5 brands (total market) | In 2020, leading brands included Toyota, Kia, and Hyundai. |
Dealer network (including fleet dealer network) | Dealerships in Guatemala are mainly dominated by brands from Asia. Some of the most succesful are Cofiño Stahl y Cìa (Toyota) and Auto Kia. Honda also opened up its largest dealership in the world in the country, with a grand opening in late 2019. |
Chapter 3: Company car market
Total Fleet Park (company cars)/Fleet penetration in total fleet sales | Considering an average of just over 3% of total vehicle park over the years (6% of passenger car and LCV park), 2020 should have a fleet park of some 120,000 vehicles. Gasoline dominates the industry with more than 85% market share, followed by Diesel and then other power trians such as EVs (1%). |
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Evolution fleet sales (last 5 years) | Approximately 11,000 units per year in the 2017-2020 period. source: OICA |
Top 5 fleet brands (fleet market) | Highly dominated by brands from Asia such as Toyota, Hyundai, Kia, Nissan, and Isuzu. Premium Market players include BMW, Audi, Mercedes Benz, Land Rover, and Porsche. |
Chapter 4: Taxation & legislation
Guatemala | ||
The basis of company car taxation in Guatemala is reflected in this overview. Different types of taxes are considered here: taxes related to the registration of the vehicle, income taxes and VAT aspects. Expected future developments are also briefly listed, if any.
La base de los impuestos a los automóviles de las empresas en Guatemala se refleja en este resumen. Aquí se consideran diferentes tipos de impuestos: impuestos relacionados con el registro del vehículo, impuestos sobre la renta y aspectos del IVA. Los desarrollos futuros esperados también se enumeran brevemente, si corresponde.
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1. Car taxation | ||
1.1. Registration tax | ||
Taxable event
Taxable person
Tax due
Taxable period |
Vehicle registration tax rates depend on the type of vehicle, attached file ANNEX I that contains the different tax rates for each type of vehicle.
Determination of the tax base:
The tax base for the Specific Tax on the First Registration of Land Motor Vehicles for use is the value recorded in the original invoice issued by the seller of the vehicle abroad, which complies with the requirements established by law. the country of issue and that the authenticity of said invoice can be verified by the Tax Administration, in addition to presenting the title of ownership of the vehicle issued by the competent authority of the country from which it is exported and documenting the payment of the invoiced value, by the means made available by the national and international banking system.
In the case of not complying with what is required in the previous paragraph, the taxable base will be the value of the vehicle that appears in the table of taxable values that the Superintendence of Tax Administration must prepare annually (ANNEX II attached), which must be approved by the Board of Directors, Superintendence and published in the official newspaper and on the website of the Tax Administration, in the month of November of each year.
For new land vehicles, assembled or manufactured abroad, the tax base is the import value defined as the addition of insurance and freight to the value of the vehicle, reported by manufacturers or importers.
In the case of new land vehicles, assembled or manufactured in Guatemala, the tax base is the value of the vehicle consigned in the invoice issued by the assembler or the manufacturer.
The model year of the land vehicles, will be determined by verification of the Vehicle Identification Number (VIN), which must physically consist of vehicles entering the national territory and exactly match the import documents
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1.2. Annual circulation tax | ||
Taxable event
Taxable person
Tax due
Taxable period | The annual vehicle circulation tax depends on the type of vehicle and its characteristics, for reference the attached file ANNEX II contains the detail of the types of vehicles, their characteristics and the tax that corresponds to them. | |
2. Income taxes | ||
The Law establishes two forms of payment of Income Tax, taxpayers can register with the Tax Administration in one of the following two methods:
1. Regime on Profits of Lucrative Activities of 25% 2. Regime on Income from Lucrative Activities of 5% to 7%, depends on the amount of gross income that you obtain monthly.
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3. VAT | ||
3.1. Hire purchase | ||
ü 12% on the purchase price.
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3.2. Leasing | ||
ü 12% on the value of the lease.
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4. Company car | ||
4.1. VAT due on private use of company cars | ||
ü 12% | ||
5. Income taxes – drivers’ personal taxation | ||
If a person is engaged in the business of buying and selling vehicles or providing taxi services, the income tax that must be paid depends on the tax regime in which it is recorded:
1. Regime on Profits of Lucrative Activities of 25% 2. Regime on Income from Lucrative Activities of 5% to 7%, depends on the amount of gross income that you obtain monthly.
The personal use of vehicles does not have tax benefits, only fiscal obligations.
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6. Electric vehicles | ||
For the importation of electric vehicles: 12% Value Added Tax and 5% First Registration Tax. | ||
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Source: BDO
Chapter 5: Car policies
First of all, to drive in Guatemala, foreign visitors must have a full driver license valid in their countries of residence. Foreign driver licenses are accepted for the first 30 days. It is recommended to have an International driving permit as International driving permits are accepted for longer stays. To rent a car in Guatemala, each driver must be at least 25 years old and have one year of driving experience. Driving is on the right hand side of the road.
· The minimum driving age is 18 years.
· Seat belts when driving are mandatory.
· The use of a mobile phone while driving is prohibited, the exception is cell phones with a hands-free systems.
· Turning right on red is not permitted.
· Drivers must yield when entering a traffic circle.
· The permitted blood alcohol level is 0.08%.