Taxation of winnings (Guatemala)

💡 Important: Guatemala's gambling regulatory framework is fragmentary, with the market partly operating in a "gray zone." Taxation practices may differ depending on the type of winnings and the source of payment. Always consult the SAT (Superintendencia de Administración Tributaria) clarification and consult your local accountant.

1) Basic principles

Tax jurisdiction: Tax duties depend on the player's residency status and source of income (Guatemalan lottery/casino or overseas operator).

Income from winnings: generally qualified as other income (premiums, prizes). For individual organized draws/lotteries, special source holds apply.

Taxes of operators vs. players:

The player pays tax on the prize/net winnings received if withholding does not close the obligation.
The operator pays corporate taxes (on income and/or ISR mode), and for lotteries - usually acts as a tax agent (withholds tax from the prize until payment, if this is provided by the mode).

2) Types of winning sources

1. State/licensed lotteries and circulation games

It is often provided for withholding tax when issuing a prize. The player receives the amount "on hand" minus the deduction.

The organizer issues a supporting document (compromante) on the amount of the prize and retention.

2. Offline casinos and gaming halls in the country

Legal status is patchy. If the institution works legally and draws up payments, deductions and reporting are possible. In unofficial payments, the player is personally responsible for declaring income.

3. Foreign online casinos and bookmakers

Normally there is no source hold (operator outside Guatemala).

Income may be subject to self-declaration by the resident to the SAT as foreign/unregulated income.

Transfers through banks/fintech services may be subject to AML monitoring (requests for a source of funds).

3) Residency and tax qualifications

Guatemalan residents declare world income under ISR rules (including foreign winnings), applying appropriate rates/regimes and taking into account deductions, if any.

Non-residents are subject to income from sources in Guatemala. When paying bonuses/prizes within the country, non-residents are often subject to a fixed withholding at the source (if it is provided for by the regime for this type of income).

4) Withholding

When applied: for lotteries and organized draws, as well as for official payments from regulated institutions.

By whom: organizer/operator as a tax agent.

What the player receives: net amount of the prize + combrobante with a breakdown of deductions (save the document for reporting).

When not applicable: at foreign operators; in informal payments in the "gray" sector. Then the duty passes to the player (independent declaration).

5) Self-declaration and reporting

When required:

You won against a foreign online operator.
You were paid a prize without deductions.
You are a resident, and want to offset foreign tax (if it was withheld abroad).

What to prepare:

Extract/screenshot of the source of the win (personal account, letter from the operator).
Bank/fintech statements with credits.
Withholding documents (if any).
Accounting of expenses/fees of payment systems (if possible).
Deadlines and forms: see SAT instructions for the current filing period (annual ISR declaration; with significant amounts - consultation with an accountant is advisable).

6) IVA (VAT) and winnings

For players: Winnings are not a delivery of goods/services, so an IVA to a player does not usually apply.

For operators: activities may fall under IVA at the service/ticket/commission level, depending on product structure and license availability.

7) Rate, currency and conversion

Foreign currency winnings (USD, EUR, crypto assets, etc.) should be translated into GTQ according to SAT rules on the date of receipt of income/conversion.

For cryptocurrencies, valuation is practiced at market value at the time of receipt; in the subsequent sale/conversion, a separate financial result (profit/loss) arises, which may also be taxable.

8) AML/KYC and cash limits

Large winnings and cash transactions can cause requests for a source of funds from banks/payment providers and IVE (financial intelligence under SIB).

It is recommended to keep documents of the origin of funds (deposits/withdrawals from the operator, identification, scans of tickets/receipts).

9) Practical scenarios

Scenario A: National Lottery prize

1. The organizer withholds tax at source → 2) You receive a net amount + comprobante → 3) Keep the document. If you are a resident, check to see if the hold covers the entire liability.

Scenario B: Local Casino Win (Official Payout)

1. Casino withholds tax (if required) → 2) Issues confirmation → 3) Save papers for declaration/bank.

Scenario C: Winning on a foreign site

1. There is no deduction → 2) The resident declares income on his own → 3) Attaches extracts/screenshots; takes into account exchange rate revaluation and commissions.

Scenario D: Cryptocurrency win

1. Fix the market value of the token at the time of receipt → 2) When converting to fiat, a separate tax result is possible → 3) Keep track of dates/values.

10) Responsibility and risks

Non-declaration of income threatens with tax accrual, penalties and fines.

Informal payments without documents make it difficult to prove the source of funds and can be blocked by banks.

Crypto transactions without taking into account the cost on the date of receipt are a frequent error in checks.

11) Recommendations to players

Keep all documents: tickets, acts, receipts, deductions, bank statements.

For online operators - take screenshots of betting/inference history.

Keep track of rates and commissions for foreign exchange/crypto transactions.

For large amounts, take the advice of an ISR accountant and, if necessary, a financial attorney.

12) Notes for operators

Clarify your tax regime (ISR for income/income, IVA for services).

If the product falls under the lottery/circulation format - set up the tax agent function (withholding) and the correct compromantes.

Implement KYC/AML procedures (identification, monitoring, reporting in IVE) and storage of transaction logs.

A transparent payment policy and automatic issuance of confirmations reduce player claims and compliance risks.

Disclaimer

The material is for informational purposes only and does not constitute legal or tax advice. Rates, forms and procedures are updated; review current SAT requirements and related regulations prior to filing declarations or product launch.