On Monday, March 17, there were two relevant legal updates that may be of interest to you. First, the Individual Taxpayer Identification Number (ITIN) was replaced by the Unique Identification Code (CUI) for taxpayers. Second, the government will require all drivers to have insurance against third parties and occupants of their vehicle as of May 1. More information on this below.
The CUI will also be your ITIN
The Tax authorities (SAT) published resolution SAT-DSI-393-2025 which harmonizes the Identification Number (CUI) with the Individual Taxpayer Identification Number (ITIN) in SAT's computer systems. This measure applies both to current individual taxpayers and to those who register in the future.
This means that, as of March 17th, the CUI also becomes the taxpayer's ITIN number. And it will be the number that must be used in any procedure with the SAT, on invoices or any other document issued in accordance with tax laws.
According to the SAT, this will improve the efficiency of tax information management and facilitate communication between them and other state institutions. Although it is important to emphasize that the transition will be gradual and there is still no exact date for everything to be harmonized. Regulatory, administrative and technical actions and adjustments are still pending
This agreement goes hand in hand with Decree 31-2024, Law for the Integration of the Primary and Agricultural Production Sector, which will come into force on April 9, 2025. Article 19 of this legislation reforms article 120 of the Tax Code and establishes the obligation that the ITIN not only be used for tax matters and extends its use to all civil, commercial, labor-management, financial and notarial transactions, administrative and judicial procedures.
In the case of companies, associations, legal entities, among others, there will be no change, and they will keep the same ITIN.
Mandatory Civil Liability Insurance for all Vehicles
On March 17, the Executive published four Government Agreements (46-2025, 47-2025, 48-2025 and 49-2025) in the Official Gazette that require motorcycles, private vehicles, public transport and cargo transport to have civil liability insurance against third parties and occupants.
This agreement will come into force on May 1, 2025, and will affect both vehicles with national and foreign license plates while they are moving within the national territory.
Depending on the vehicle, the insured sum must cover at least 100 minimum monthly wages (motorcycles), 200 minimum wages (private vehicles) or 400 minimum wages (public and cargo transportation). Based on the current salary, this means Q380,060 (US$49,255), Q760,120 (US$98,511) and Q1,052,024 (US$136,342) respectively.
The new regulation also includes fines for not having insurance, ranging from Q500 (US$64.80) to Q4,000 (US$518.40) depending on the type of vehicle. These will be multiplied by four, from Q2,000 (US$259.20) to Q15,000 (US$1,944), if the driver is involved in an accident. The amounts to be compensated are also specified according to the type of injury, ranging from one to 50 times the minimum wage: Q3,723.05 (US$482.51) to Q186,152.50 (US$24,125.36).
According to the Guatemalan Association of Insurance Institutions (AGIS), only 600,000 vehicles have insurance in the country (10% of the vehicle fleet).
They added that insurers are creating new insurance policies that adapt to the specifications and amounts defined in the Government. These would include, for example, those under 25 years of age, who were previously excluded in many policies.
Based on the figures provided by AGIS, third-party liability insurance today has an average annual cost of between Q800 (US$103.68) and Q1,200 (US$155.52). In the case of the new products, the new prices have yet to be defined.
If you have any questions or require more information on any of these topics, we are at your service.
Update (March 20, 9:30 a.m.): After two days of roadblocks and protests agains this measure in Guatemala, President Bernardo Arévalo announced that, following a dialogue with the various organizations involved in the protests, he had decided to cancel the four agreements. This measure took effect on March 20, 2025, with the publication of the annulment in the Official Gazette. According to Arévalo, they agreed to form a technical working group to discuss, within a maximum of one year, the regulations for the implementation of Article 29 of the Transportation Law (regarding insurance) and to work on a proposal for a general transportation law that would update the current regulations, which do not take into account new modes of transportation.