According to recent reports, Guatemala has increased the annual income threshold for the simplified small taxpayer regime. Under the regime, qualifying taxpayers are subject to a flat 5% tax on gross income, which replaces both income tax and VAT. The annual income threshold for the regime has been changed from a fixed amount of GTQ 150,000 to the GTQ equivalent of 125 minimum wages effective 9 April 2025, which is equal to GTQ 465,381.25 for the 2025 tax period. Qualifying small taxpayers with annual income below the threshold may apply the regime.