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3.4. Potential Loss of Tax Residence Status by Domestic Entities

The risk of losing tax residence status will depend on the ground why the resident became resident. In case the company is resident because the place of incorporation, there will be no risk of losing the residence status. If it is resident due to its domicile, the change of domicile will lead to the loss of Guatemalan residence. Finally, if the company is resident as a consequence of having its place of effective management within Guatemala, the possibility of losing tax residence status arises if effective management is moved out of the country.