4.1 Paying taxes

Displayed below is information gathered by the Ministry of Business on the current tax regime in Guyana as it relates to investment and the business environment.

Table 1: Taxes and Mandatory Contributions payable by Businesses and/or persons doing Business in Guyana

No. Type of Tax Legal/Regulatory Basis Definition Tax Rate Tax Base
1.a Corporate Income Tax. (Commercial Company) Corporation Tax

Act 81:03

Section 10

A levy placed on the chargeable profits of a firm or its turnover if higher, where Turnover is the net sales generated by a business, while profit is the residual earnings of a business after all expenses have been charged against net sales. 40% Chargeable Profit
2% Turnover
1.b Corporate Income Tax. (Non-Commercial Company) A levy placed on the chargeable profits of a firm, where chargeable profit is the residual earnings of a business after all expenses have been charged against net sales. 30% Chargeable Profit
2 Value Added Tax Value Added-Tax, No. 10 of 2005 Value Added Tax (VAT) is levied on the sale of goods or services. It is levied at each stage in the chain of production and distribution from raw materials to the final sale (retail) based on the value (price) added at each stage. 16% Value Added
3 Property tax Property Tax Act, Cap. 81:21 Property Tax is an annual tax charged on the net property which is  the amount by which the total value of the property owned by any person at the end of the year, exceeds the total value of all debt owed by him at that time. First Year exemption of $40M  then

 

0.75%

Net Property
4 Capital gains tax Capital Gains Tax Act, Cap. 81:20 CGT is a tax levied the gains made from the disposal of assets. A capital gain is the amount by which the price received for the change of ownership of an asset exceeds its cost of acquisition, or its value at the time it was acquired, or its market value as at 1st January 1991, whichever is later. 20% Capital Gains
5a Employer paid – Social security contributions National Insurance and Social Security Act Cap. 36:01 Paid contributions into the National Insurance Scheme by employers based on a Payroll System, i.e.,  a system that calculates employee’s payment based off of hours works etc. 8.4% Gross Salaries
5.b Employee paid – Social security contributions Paid contributions into the National Insurance Scheme by employees based on a Payroll System, i.e., a system that calculates employee’s payment based off of hours works etc. 5.2% Gross salaries

 

Table 2: Other Taxes and Mandatory Contributions indirectly related to Businesses and/or persons doing Business in Guyana

No. Type of Tax Legal/Regulatory Basis Definition Tax Rate Tax Base
1 Withholding Tax Corporation Tax

Act 81:03

Section 10B

Withholding Tax is income tax withheld from employees’ wages and paid directly to the Government, by the employer. A tax levied on income (interest and dividends) from securities owned by a non- resident. 20% Chargeable Income
2 Vehicle registration tax Motor Vehicles and Road Safety Act Cap.51:02 Vehicle registration tax or VRT is a fixed fee that must be paid when registering a motor vehicle. G$30,000 Fixed Fee
3 Excise Tax Excise Tax Act, No. 11 of 2005 Excise Tax is paid on taxable goods imported and not warehoused, taxable goods imported and warehoused and removed from the warehouse, taxable goods manufactured and sold in Guyana, at rates specified by regulations made by the Minister, which regulations shall be subject to an affirmative resolution of the National Assembly. Various Rates eg.

 

CIF + 50%

 

(Gasoline Motor Vehicles under four years old)

Chargeable value determine by the nature of the good

 

Duty levied on the value of the good

4 Stamp Duty Stamp Duties (Management) Act Cap.80:03 Stamp duty is a duty levied on the legal recognition of certain documents. G$ 1 per G$ 1,000 Transaction value
5 Premium Tax Income Tax Act, Chapter 81:01 Premium Tax is referred to as an assessment levied by a state, usually on the premium collected by insurance companies. 10% (foreign company not established place in Guyana)

 

6% (companies within Guyana)

Collected Premium
6 (Personal) Income Tax Income Tax Act,

81:01 Section 20

Personal Income Tax (PIT) is a direct tax levied on income of a person. Standard deduction of G$600,000 per annum + 30%. Chargeable Income

 

For more information see Guyana Revenue Authority Website