Home to a welcoming business environment and a fast-growing economy, Guyana offers promising business opportunities for international investors. In particular, tourism, mining and agriculture industries offer interesting investment prospects. Learn more about accounting and taxation in Guyana in this article.
It is important to understand Guyana's accounting and tax regulations before starting a business in this thriving market. Lack of knowledge of local laws can lead to serious compliance and legal issues.
To help you manage these issues, we've outlined some of the essential information you need to know about accounting and taxation in Guyana. Read on to discover insights on how to do business in this untapped market.
See also: Guyana Company Formation
What are the taxes for Guyana companies?
Resident corporations are taxed on all income earned globally. Non-resident companies doing business in Guyana are taxed on their income earned within the country.
The tax year coincides with the calendar year. Taxes are calculated based on income earned during the tax year (usually the calendar year preceding the tax year). However, companies that use a non-calendar fiscal year may request that their taxes be aligned to the fiscal period of their choice.
Tax returns must be completed by April 30 of the tax year.
Accounting and Taxation in Guyana: Key Local Tax Rates
Understanding accounting and taxation in Guyana is very important when starting a business in this market. Here are the tax rates you need to know:
Income tax: Residents (residing in Guyana for at least 183 days of the year) receive a personal allowance of GYD 1,020,000 or one-third of their earnings, whichever is greater. For individuals earning less than GYD 2,040,000 per year, the tax rate is 28%. If your income exceeds GYD 2,040,000, the tax rate increases to 40%.
Corporate tax: The current corporate tax rates are as follows:
- Telephone companies – 45%
- Commercial companies – 40%
- Other companies (nonprofit) – 25%
- Both non-commercial and commercial – 25 – 40%
- Small businesses engaged in manufacturing and construction services and registered with the Small Business Administration – 25%
Value Added Tax (GCT): VAT in Guyana is 14% or 0% for registered businesses. You must submit the return and pay the value-added tax by the 21st of the following month. Zero-rated supplies include exports and certain medical items. Exempt supplies include a variety of sectors, including education, finance, certain health services, and renewable energy equipment.
Withholding tax: WHT applies to payments to non-residents. The report and total monthly payment must be paid by the 14th of the following month. If the treaty rate is higher than the statutory rate, the lower rate will apply. See WHT rates below.
Recipient | WHT | ||
dividends | interest | royalty | |
non-treaty | 20 | 20 | 20 |
treaty: | |||
Canada | 15 | 25 (1) | 10 |
uk | 10 | 15 | 10 |
capricom | 0 | 15 | 15 |
social security: Employers must deduct and remit employees' social security contributions. Contributions apply to monthly earnings up to GYD 280,000 and weekly earnings up to GYD 64,615 and are taxed at a rate of 8.4% for employers and 5.6% for employees.
Paying taxes in Guyana
The corporate tax liability is structured around quarterly advances based on the previous year's tax liability. Payment is due on March, June, September and December 15 of the previous year.
However, the Director reserves the right to request a calculation of estimated income for the current fiscal year.
The remaining tax balance must be settled by April 30 of the tax year. Failure to meet this deadline will result in the following penalties:
- 1. If you do not file your tax return and payment by the end of April, you will be charged 10% of the unpaid tax amount.
- 2. Penalties for late payment include a 2% monthly fee for unpaid taxes and an 18% annual interest rate.
- 3. Additionally, a fixed fee of GYD 50,000 will be charged for each deficit report submitted after the stipulated deadline.
Tax audit process
Tax audits are a routine part of corporate compliance, often starting through random selection with an average frequency of every three years.
Once selected, companies are obligated to provide comprehensive financial data and related documentation to tax officials. Supervision of tax matters in Guyana falls within the purview of the Guyana Revenue Authority.
Guyana’s International Tax Treaties
Guyana currently has tax treaties with the following countries:
- Canada
- Caribbean Common Market (CARICOM) Member States
- uk
Frequently Asked Questions (FAQs) about Accounting and Taxation in Guyana:
Based on our experience, we have identified common questions and concerns that our clients frequently ask when doing their accounting and taxes in Guyana.
1. What are the tax rates for individuals and businesses in Guyana?
Tax rates vary depending on income level and type of business. For individuals, the tax rate ranges from 28% to 40%, while the corporate tax rate is generally 25%.
2. How does the tax year work in Guyana?
The tax year in Guyana coincides with the previous year and is assessed based on income earned in the previous year.
three. What are the VAT registration and reporting requirements in Guyana?
VAT registration is mandatory for businesses handling taxable supplies. The value added tax (VAT) reporting and payment deadline is the 21st of the month following the month in which the taxation period falls.
4. What is Guyana’s withholding tax regime?
VAT registration is mandatory for businesses handling taxable supplies. The value added tax (VAT) reporting and payment deadline is the 21st of the month following the month in which the taxation period falls.
5. What are the social security contribution requirements for employers and employees in Guyana?
Employers must deduct and pay Social Security contributions on their monthly and weekly earnings, at a tax rate of 8.4% for employers and 5.6% for employees.
6. Are there any tax incentives for companies in Guyana?
Guyana offers a variety of tax incentives to encourage investment and economic development. These incentives may include tax exemptions, reduced tax rates, or exemptions for certain industries or activities. Interested businesses should consult their local authority or tax advisor to determine eligibility and application procedures.
Biz Latin Hub can assist you with accounting and taxation in Guyana.
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We also have trusted partners in many other markets. Our unrivaled reach means we are ideally placed to support multi-jurisdictional market entry and cross-border operations.
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The information provided here should not be construed as formal guidance or advice. Please consult a professional regarding your specific situation. The information provided is for informational purposes only and may not contain all applicable laws, standards and best practices. The regulatory environment is constantly evolving. Information referenced may be outdated or may have changed. The interpretations presented are not official. Some sections are based on the interpretations or views of relevant authorities, but we cannot guarantee that these views will be supported by all areas of expertise.