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Japan vs Guatemala
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

🇯🇵 Japan
vs
🇬🇹 Guatemala
Tax Year:

💰 Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country — side by side.

Enter your annual income above to see your personal tax comparison →

Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
5–45%
Basic deduction increase for low earners
No change
5–7%
Rates stable; revenue mobilization challenge
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
8–10%
No rate change; digital services tax under review
No change
12%
12% IVA maintained
No change

Corporate Tax Rate

Corporate Tax Rate
~30.62%
Global Minimum Tax applies to large MNCs
No change
25–28%
25–28%; reform discussions
No change

Capital Gains Tax

Capital Gains Tax
20.315%
Expanded NISA (tax-free investment) ongoing
No change
10%
10% maintained
No change

Social Security & Payroll

Social Security / Payroll
~28.5%
Coverage expansion to part-time workers ongoing
No change
~15.67%
IGSS; expanding coverage priority
No change
State, Regional & Local Taxes

🇯🇵 JapanPrefectural & Municipal Inhabitant Tax

Japan's 47 prefectures levy inhabitant tax (住民税) at a flat 10% on top of national income tax — 4% prefectural + 6% municipal. A reconstruction special income tax of 2.1% of national tax applies through 2037. Property acquisition tax and fixed asset tax (1.4% of assessed value) are levied locally. Large cities impose additional taxes on large businesses.

🇬🇹 GuatemalaMunicipal Taxes

Guatemala's 340 municipalities levy the Impuesto Único sobre Inmuebles (IUSI — property tax at 0.9% of assessed value above GTQ 2,000), business licences (boleto de ornato), and vehicle stickers. Guatemala City municipality has the highest rates. The Superintendencia de Administración Tributaria (SAT) administers national taxes. Guatemala has among the lowest tax-to-GDP ratios in Latin America (~11–13%), reflecting significant informality and tax avoidance. Tax collection has been a persistent challenge.

⚠️ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025–2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Japan vs Guatemala: Key Tax Differences (2026)

💰 Income Tax: 🇯🇵 Japan has a higher top income tax rate (5–45% vs 5–7%). 🇬🇹 Guatemala is more favourable for high earners.

🛒 VAT/Sales Tax: Guatemala has a higher consumption tax (8–10% vs 12%).

🏢 Corporate Tax: 🇬🇹 Guatemala offers a lower corporate rate (28% vs 30.62%), which can influence business location decisions.

📈 Capital Gains: 🇬🇹 Guatemala taxes investment gains at a lower rate (10% vs 20.315%), benefiting investors.

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