4.2 Accessing Incentives

The information provided below is a summary of Investment Incentives available

General Incentives:

  • Exemption from Customs Duty on most plant machinery and equipment
  • Exemption from Customs Duty on raw materials and packaging materials used in the production of goods by manufacturers
  • Exemption from Customs Duty and zero rate of Value-Added-Tax on raw materials and packaging for manufactures who export 50 percent or more of their products
  • Unlimited carryover of losses from previous years
  • Accelerated depreciation on plant and machinery for approved activities
  • Full and unrestricted repatriation of capital, profits and dividends
  • Benefits of double taxation treaties with the UK , Canada, Kuwait and Caricom countries
  • Exemption from Customs Duty and zero rate of Value-Added-Tax on items approved under an Investment Agreement between the Government and the business
  • Exemption from Excise Tax on items approved under an Investment Agreement between the Government and the business
  • Zero rate of Value-Added-Tax on exports

Tax holidays for projects that meet the requirements specified in the In-Aid of Industry Act

Special Incentives (provided in addition to general incentives):

  • Export Allowances for non-traditional exports to markets outside Caricom.  The actual amount deducted depends on the proportion of export sales to total sales.  Does not include rice, lumber, timber, shrimp, rum, sugar, diamond, gold, bauxite, molasses, petroleum.
% of export sales to total sales

10% or more –less than 21%

Greater than 21% – less than 31%

Greater than 31% – less than 41%

Greater than 41% – less than 51%

Greater than 51% – less than 61%

Greater than 61%

% of export profit deducible from income tax

25%

35%

45%

55%

65%

75%

Sector Incentives (provided in addition to general incentives):

Agri-business

  • Exemption from Customs Duty on a wide range of machinery and equipment for land preparation, cultivation, harvesting – tractors, combines, bulldozers, excavators, etc.
  • Exemption from Customs Duty on a wide range of agro-processing equipment – sorting and grading of seeds, fruits presses and crushers
  • Zero rate of Value-Added-Tax on harrows, scarifiers, ploughs, weeders, hoes
  • Exemption from Customs Duty on fertilizers, insecticides, fungicides, weedicide, herbicides, inoculants
  • Zero rate of Value-Added-Tax on fungicide, herbicide, weedicide, pesticides, fertilizers
  • Exemptions from duties and taxes from items covered under an Investment Agreement

Manufacturing

  • Exemption from Customs Duty on a wide range of process machinery and equipment including packaging equipment – fruit processing, sewing machines, four processing, poultry feed
  • Exemption from Customs Duty on a wide range of auxiliary equipment – boilers, fork-lifts, scales for continuous weighing, conveyors
  • Exemption from Customs Duty and zero rate of Value-Added-Tax on raw materials and packaging form manufacturers who export 50 percent or more of their products
  • Exemption from Customs Duty on raw materials and packaging materials used in the production of goods by manufacturers
  • Zero rate of Value-Added-Tax on sacks and bags used for packaging of goods
  • Exemptions from duties and taxes from items covered under an Investment Agreement

Tourism

  • For tourist hotels and eco-tourist hotel
  • Tourist hotels – a hotel having at least 15 rooms and providing accommodation, services and activities intended to attract visitor on holiday
  • Eco-tourist hotel – a tourist hotel in a location and having activities intended to attract persons who have an interest in the natural environment and wildlife of Guyana and having installations and operations designed to protect and preserve the natural environment and wildlife
  • New tourist hotels/eco-tourist hotel – exemption from Customs Duty and zero rate of Value-Added-Tax on equipment, furnishings, building materials, appliances – to a total value of up to 50% of the total investment
  • Expansions of existing tourist hotels/eco-tourist hotels – fiscal concessions of up to 25% of the additional investment

Fisheries

  • Established fishing industries with fishing licences are eligible for exemption from Customs Duty for items such as spares, packaging material, fishing nets, floats, fishing vessels and wide range of fishing equipment
  • Small fishing establishments that provide evidence of their operations and supporting documentation from the Fishing Co-operatives are eligible for exemptions from Customs Duty and zero rate of Value-Added-tax on fishing nets, floats, rope, twine, cordage, hooks and sheet lead
  • Exemption from Customs Duty and Value-Added Tax on outboard engines of up to 75 Hp
  • Exemptions from duties and taxes for items covered under an Investment Agreement

Forestry

  • Exemption from Customs Duty of a wide range of forestry and sawmilling equipment – skidders, band saws, gang saws, chain saws, saws blades, etc.
  • Exemption from Customs Duty on a wide range of wood working equipment – lathes, sanders, routes, saws
  • Exemptions from duties and taxes for items covered under an Investment Agreement

Mining

  • Exemption from Customs Duty on a wide range of mining equipment – for sorting, screening, separating, washing, crushing, grinding, mixing or kneading earth, stone, ores or other mineral substances; rock drilling or earth boring tools; furnaces and ovens for roasting, melting or heat treatment of ores, pyrites or of metals
  • Exemptions from duties and taxes for items covered under an Investment Agreement

ICT

  • Exemption from Customs Duty on a wide range of ICT equipment including computers and their hardware accessories, integrated circuits, micro assemblies and apparatus
  • Zero rate of Value-Added-Tax on Computers and hardware accessories, routers, switches and hubs for networking computers, toner cartridges and ink cartridges for computer printers
  • Tax Holiday
  • Exemption from duties and taxes for items covered under an Investment Agreement