Emerging Law for Conservation of Employment - Decree 19-16

After several attempts in Congress for the approval of the Investment and Employment Promotion Act, no concensus was achieved for its approval.


In order to protect the employment level currently achieved in the Clothing and Textile Industry, as well as the Call Centers and Technology Companies, Decree 19-16 has passed in Congress, named "Emerging Law for Conservation of Employment".


This law allows Clothing and Textile, as well as Call Centers and Technology Companies, to apply for 10 years of income tax benefits for income generated from their sales.


For the rest of the sectors, there are no possibilities to extend their income tax benefit.


Based on the commitment Guatemala has before the WTO, this initiative eliminates income tax benefits for income generated from export activities, as of January 1st, 2016.

New Employment Promotion Act

In order to comply with the World Trade Organization, the Congress of Guatemala has received Initiative 4894 to pass the Employment Promotion Act, which aims to promote new investment and create new jobs. Companies that meet the conditions to maintain a certain number of employees (5-80), and invest certain amount ($ 500,00.00) will be eligible to apply to the new law.

The bill is currently in Congress for discussion, and early approval is expected to benefit Guatemala.  

Read more: New Employment Promotion Act