Corporation Taxes FAQ
What income is chargeable to corporation
The profit of any company
accrued in or derived from Guyana or elsewhere, whether or not payments are received in
Guyana is chargeable to corporation tax. Chargeable profits include:
profits from any trade or business for
whatever period of time the trade or business is carried on;
profits from any profession or vocation or management charges or
charges for the provision of personal services and technical or managerial skills;
capital gains accruing on the disposal of property within twelve
months of its acquisition;
interests, discounts, annuities or other accrued or periodic
payment received for the use of capital;
premiums, commissions and fees;
rents and royalties; and
dividends and other income from non-resident companies.
How is corporation tax calculated?
The rate of corporation tax is forty percent for commercial companies except telephone companies which are taxed at the rate of forty-five percent and thirty percent for non-commercial companies. There are no special rates applying to particular
A commercial company is a company at least seventy-five percent of the gross income of
which is derived form trading in goods not manufactured by it and includes any commission
agency, any telecommunication company, any body corporate licensed or otherwise authorised
by law to carry on banking business in Guyana, and any company carrying on insurance
business other than long-term insurance.
While non-commercial companies pays tax at one rate, (30%), commercial companies are also
subject to a tax referred to as minimum corporation tax (MCT) which is computed at two
percent of turnover. Commercial companies must first calculate corporation tax in
accordance with normal principles. If the tax calculated on the normal basis i.e. at 40%/45%
is less than two percent of turnover, tax at two percent of turnover is payable. Where the
tax at the normal rate is greater, then tax at the normal rate is payable.
Any excess MCT over tax at the normal rate is carried forward for setoff against
corporation tax payable in subsequent years. MCT is recoverable against future years’
taxes providing however that in no year shall the tax payable be reduced to less than two
percent of turnover.
Updated to: September 30, 2012