There is a standard deduction of G$420,000 per annum, after which the balance of chargeable income is taxed at 33.33%. There are no other allowances.
Basis - Guyana resident individuals are taxed on their worldwide income. Nonresidents are taxed only on Guyana-source income.
Residence - Individuals are resident if they live permanently in Guyana or are present in Guyana and intend to reside there permanently. Temporary absences may be regarded as consistent with such residence.
Individuals who are in Guyana for a total of more than 183 days in a calendar year are also regarded as resident for tax purposes.
Filing status - Joint filing is not permitted. Each individual must file a separate tax return.
Taxable income - Taxable income is the aggregate income from all taxable sources, calculated according to the rules applying to those different sources.
Capital gains - Capital gains are treated as income and taxed at the normal rate if the asset disposed of was held for less than 1 year. Assets held for 25 years or more are not subject to capital gains tax. All other capital gains are subject to tax at a rate of 20%.
Stamp duty - GYD 1 to GYD 300 on documents.
Capital acquisitions tax - No
Inheritance/estate tax - No inheritance tax is levied where the gross value of inherited property does not exceed GYD 100,000. For property with a gross value exceeding that amount, an inheritance tax is levied at an amount of 0.5% of 1% of the gross value exceeding GYD 100,000.
Net wealth/net worth tax - Net wealth/net worth tax is levied on the net value of property. The first GYD 7.5 million is exempt, the next 5 million is subject to a 0.5% rate and the remainder at a 0.75% rate.
Social security - Employers withhold and pay social security contributions under Guyana's National Insurance Scheme. Contributions are levied at a rate of 13% (7.8% for the employer and 5.2% for the employee) on monthly earnings of between GYD 5 and GYD 104,278 (weekly earnings of between GYD 5 and GYD 24,064).
Tax year - Calendar year
Filing and payment - The tax return must be submitted annually by 30 April for income derived in the immediately preceding year of assessment.
Penalties - Fines are imposed for late filing or failure to file.
Guyana company tax rate is 45% for commercial companies and 35% for non-commercial companies.
Tax rate for non commercial companies is 35% of chargeable profit. Losses may be carried forward indefinitely and set off is limited to 50% of the chargeable profits in future years.
Tax rate for commercial companies is 45% of chargeable profits or 2% turnover, whichever is higher. Any payment in excess of 45% of profit is carried forward as a credit to be used to reduce the tax whenever it is higher than 2% turnover. A commercial company means a company of which at least 75% of the gross income is derived from trading in goods not manufactured by it and includes commission agency and any telecommunications company. It also includes Banks and Insurance Companies other than long term Insurance business.
PROPERTY TAX (WEALTH TAX)
This tax is payable on the net assets of the company as at 1 January each year. Assets which attract wear and tear allowances will be included at their income tax values.
The tax rates on net property are as follows:
- the first G $ 1,500,000 is exempt
- the next G $ 5,000,000 is taxed at 0.5%
- the remainder is taxed at 0.75%
A set off would be granted to investors who hold shares in local companies at the appropriate rate.
The tax rate is 20% on the gain on disposal unless the asset was held for more than 25 years when it becomes exempt. Capital losses are carried forward indefinitely and could be set off against future capital gains until fully recouped. Gain on disposal of investments in local public companies is exempt from tax.
The after tax profits of a branch of a non-resident company is deemed distributable whether distributed or not and will be subject to withholding tax at 20% or at treaty tax rates unless the company has reinvested to the satisfaction of the Commissioner General such profits or any part thereof in Guyana.
There are no specific rules for granting of tax free allowances except overseas travel assistance which is described in the Income Tax Act. In practice, some management staff may obtain car and entertainment allowances but the amount would be limited to 10% of their renumeration in each case.
CAPITAL GAINS TAX
The tax rate is 20% on the gain unless the asset is held for more than 25 years when the gain will be exempt. Capital losses are carried forward indefinitely until they are fully recouped. There is no limit on the losses to be claimed in each year.
The rates for wear and tear allowances for different categories of assets are as follows:
- aircraft 33.3%
- banks 10%
- furniture and fittings 10%
- motor vehicles 20%
- office equipment - electrical 20%
- other equipment 15%
- plant and machinery 20%
- computers 50%
- buildings (housing machinery) 5% on cost
The claim is computed on a reducing balance basis except as stated otherwise. An accelerated write off is granted to pioneer industries and certain other undertakings. The rates for the initial allowances are:
- plant, equipment and motor vehicles 40%
- industrial buildings 10%
There is aq special regime for gold and diamond mining companies which enjoy a 20% write off on all assets for each year. There is no limit to the carried forward losses to be set off for each year.
Dividends paid to residents are tax free. Dividends paid to non residents are subject to withholding tax at 20% or at tax treaty rates.
Guyana VAT rate is 16%, although certain transactions are exempt or zero rated.
VAT is imposed on the supply of goods or services in Guyana and on imports.
VAT Registration - Persons making taxable supplies in excess of GYD 10 million are required to register for VAT purposes.
Filing and payment of VAT - VAT returns and payments are due within 15 days after the end of the period.
35 or 45%
Income Tax Rate
Corporate Tax Rate
Sales Tax / VAT Rate
Last Update: Nov 2010
ANTIGUA & BARBUDA
BOSNIA & HERZEGOVINA
BRITISH VIRGIN ISLANDS
CENTRAL AFRICAN REP.
CONGO, DEM. REPUBLIC
CONGO, REPUBLIC OF
ISLE OF MAN
PAPUA NEW GUINEA
TURKS AND CAICOS
UNITED ARAB EMIRATES
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