Taxes Frequently Asked Questions

CORPORATE TAX (Cont'd)

Nature of Tax

Percent

Property tax, on net assets; levied on worldwide net assets of resident companies and on net assets located in Guyana of non-resident companies; imposed on amounts not exceeding $10,000,000 0
- Exceeding $10,000,000 but not exceeding $25,000,000 0.5
- Exceeding $25,000,000 0.75
Social Security contribution (National Insurance Scheme), imposed on monthly earnings of employees up to $158,159 and weekly earnings of up to $36,498.
- Employer 7.8
- Employee 5.2

Class of Assets

Percent

Aircraft 33⅓
Boats 10
Buildings (housing and industrial) 5 on cost
Furniture and Fittings 10
Motor vehicles 20
Office Equipment:
- Electronic including Computers and Computer Software 50
- Other 15
Plant and Machinery 20

Office buildings and structures used for trading are not entitled to any capital allowances.

Export Allowance. Companies may deduct an export allowance if they export non-traditional products to non-CARICOM countries. Non-traditional products include vegetables, furniture, fish and plants. Products that do not qualify for the allowance include bauxite, diamonds, gold, lumber, prawns, rice, rum and sugar.

The export allowance is computed by applying a specified percentage to export profits. The following are the deductible percentages of export profits.

Export sales as a percentage of total sales

Deductible percentage

Exceeding

Not Exceeding

Of Export Profits

%

0

9.9

21

31

41

51

61

%

9.9

21

31

41

51

61

-

%

0

25

35

45

55

65

75

 

For the purpose of the export allowance, export sales and export profits include only those sales and profits derived from exports of products qualifying for the export allowance.

Relief for Losses. Companies may carry forward losses for an unlimited number of years, but the losses may not reduce the taxable income in any year by more than 50% for non-commercial companies or the tax payable to less than 2% of turnover for commercial companies. Loss carry-backs are not allowed.

Groups of Companies. There are no provisions in the law relating to group taxation. All companies are taxed separately.

D.  Other Significant Taxes

The table above summarises other significant taxes.

E.  Miscellaneous Matters

Foreign – Exchange Controls. The Guyanese currency is the Guyanese dollar (G$).

Guyana does not impose foreign exchange controls. Foreign exchange is freely traded at bank and non-bank cambios (places for the exchange currency).

Debt-to-Equity Rules. There are no required debt-to-equity ratios, but foreign companies must obtain permission to borrow locally.

Controlled Foreign Companies. No specific controlled foreign company rules apply.

Anti-avoidance Legislation. A provision in the law allows the Commissioner General to apply the unitary system of taxation. Under this system, for a company that is part of a group, income tax is calculated by applying to the group’s worldwide profits a ratio of the company’s turnover in Guyana to the group’s worldwide turnover.

F.  Treaty Withholding Taxes

Dividends Interest Royalties
% % %
Canada 15 20 10
United Kingdom 10/15 15 10
CARICOM 0 15 15
Non-treaty countries 20 20 20

Updated to: June 30, 2014