Emerging Markets Rates and Currencies Handbook

house. Offshore entities can trade onshore and onshore entities can trade offshore. Non-Resident Restrictions: Non-residents need to trade with an approved financial institution or exchange house. Local requirements need to be met by non-residents, such as documentation from the Intendencia de Verificacion Especial (IVE) to trade with the approved financial institution. License Requirements No license required. Requirements to open a foreign currency account It is possible to open foreign currency accounts in Guatemala with financial institutions. Requirements are the same as for local currency accounts. Deal Management Rollover: Rollovers are allowed, the bank must be notified at least 2 days prior to the expiry and that is also the earliest the bank can advise on the FX amount. Unwinding: Permitted. Net settled. Early Maturity: Permitted. Gross/net settled. Documentation Requirements FX Spot: An account with Citi is required. No additional documentation is required. Non Delivery and Full Delivery forwards are available; both can be traded onshore and offshore. No regulatory documentation is required, only the forms from the Intendencia de Verificacion Especial mentioned above. Citi requires all clients to sign a Master Agreement before closing any forwards. Forwards are available in GTQ against USD with tenors from 7 days to 365 days. GTQ Forwards are not traded online. Trade Flows No local law documentation requirements. Capital Flow and FDI No local law documentation requirements. Citibank, N.A. Guatemala Branch 3era Avenida 13-78, Zona 10, Guatemala City, Guatemala, 00106-2000 FX Sales Contact: +502 2313 2589 and +502 2313-2586 Tax Summary – Guatemala Guatemala W/H Tax • 10% WHT • No WHT • No WHT (*) • 5%WHT Tax on dividends Deductibility of interests • Not deductible • The deductible amount may not exceed the value of multiplying the interest rate set by the Guatemalan Monetary Board by a total of 3 times the average net asset amount reported by the taxpayer in the annual tax return. • The interest rate over loans in local currency (GTQ) may not exceed the maximum annual rate set by the Monetary Board every six months (on January and July). • N/A • N/A Deductibility of (FX) Losses • Deductible only when the loss is materialized in an FX trade of accounts payable and accounts receivable that generate taxable income. • N/A Country Tax Deductibility and Considerations Inter-Co Debt Offshore Derivatives Equities Local Borrowing Bank Loans Offshore