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What tax benefits does Decree 29-89 give an apparel factory?

According to the cited documentsSetting up a plant

Income-tax (ISR) exemption

100% for 10 years from notification of the qualification

Art. 12 bis Decree 29-89 in forcePortal SAT

Full exemption from corporate income tax (ISR) for ten years, "counted from the date of notification of the resolution granting qualification", plus temporary suspension of import duty (DAI) and VAT on imports of machinery. Since Decree 19-2016 the benefits apply "exclusively to the apparel and textile industry" (chapters 50–63 of the Harmonized System) and to ICT services provided by call or contact centers, the only two sectors that keep the regime.

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  • Eligible sectors after Decree 19-2016

    Apparel/textile (HS ch. 50–63) and ICT/call centers

    Since 2016Decreto 19-2016 / SAT

Sources

  • Decreto 29-89

    Texto consolidado publicado por SAT

    portal.sat.gob.gtAccessed Aug 22, 2026Go to the source
  • Decreto 19-2016

    Texto del Organismo Judicial

    ww2.oj.gob.gtAccessed Aug 19, 2026Go to the source