exemptions. Taxable income includes the value of employerprovided benefits, including accommodation and transportation.
Emoluments deposited on behalf of an employee into an approved Savings Scheme may be exempt from tax.
Self-employment income. Taxable profits generally consist of business profits as disclosed in the business operation’s financial statements, subject to various tax adjustments. Income tax is imposed on net business income.
Investment income. Dividends received by residents of Guyana from Guyana resident companies are not subject to tax. Interest, rental income, dividend income from nonresident companies and royalties or other income arising from property are aggregated with other income and taxed accordingly.
Interest that accrues to an individual during any year on the amount credited to him or her in an approved Savings Scheme established under the Savings Scheme Act is exempt from tax. Also, dividends paid by an approved mortgage finance company are exempt from tax in Guyana.
An individual resident in Guyana is exempt from income tax on interest earned on savings accounts if he or she satisfies both of the following conditions:
• He or she is 60 years or older at the start of the tax year or is incapacitated by illness or infirmity.
• He or she does not earn income exceeding GYD1,200,000 per year. If the income of the person exceeds GYD1,200,000 such person is taxed on interest earned on savings accounts greater than GYD10,000.
A final withholding tax at a rate of 20% is imposed on dividends, interest, royalties and management fees paid to nonresident individuals.
Taxation of employer-provided stock options and profit-sharing schemes. No specific provisions in Guyana regulate the taxation of employer-provided stock options. Consequently, the tax treatment is based on general principles and case law. Ordinarily, an option is taxed on the difference between the market value of the shares and the price at which the option is granted at the time when the employee receives an irrevocable right to acquire shares. In general, gains derived from the subsequent sale of the shares acquired under the option may be subject to capital gains tax if the shares are held in excess of 12 months. If the shares are sold within 12 months of acquisition, the gains are subject to income tax. If a vesting period must elapse before the employee obtains an irrevocable right to acquire shares, the taxing date is the date of vesting.
Capital gains. Capital gains tax is payable at a rate of 20% on the change of ownership of property in Guyana as well as in other specific cases if the net taxable capital gain for the tax year is in excess of GYD500,000. Capital gains accruing outside Guyana accruing to a person not ordinarily resident or domiciled in Guyana are taxable in Guyana only if received in Guyana.
A net taxable gain realized on the disposition of certain assets within 12 months after acquisition is subject to income tax as ordinary income.
No capital gains tax is payable on the gains arising from the disposal of the shares or stock of public companies or on the gains arising from the sale of property used as a private residence, if the proceeds of the sale are used for the purchase of a property of equal or greater value within 60 days after the end of the year in which the property is sold.
The following deductions are allowed in calculating capital gains tax:
• Expenditure (other than the purchase price, if any) incurred solely in connection with the acquisition of that property by the person who is the owner of that property immediately before the change of ownership.
• Expenditure incurred by the owner in making improvements, additions and alterations to the property. This is subject to the condition that if any expenditure was allowed as a capital allowance, such amount is not allowed in computing the capital gain or loss.
• Costs incurred in connection with the transaction that results in the change of ownership, such as legal fees and agent’s fees.
Deductions
Personal deductions and allowances. The following is a list of allowances and deductible expenses allowable with respect to the 2024 tax year:
• Personal allowance, which is the greater of GYD1,200,000 per year or one-third of the employee’s total income from all sources excluding income subjected to withholding taxes
• Employee contributions to the National Insurance Scheme (NIS)
• Premium paid for life and medical insurance up to a maximum of 10% of income or GYD600,000 annually, whichever is lower
• Traveling allowances (deductible only if related to the exercise of employment)
• Station allowance
• Entertainment allowance
• Subsistence allowance
• Meal allowance
• Security and telephone allowance (this is by the current policy of the Guyana Revenue Authority [GRA] and is not provided for in a statute)
• Medical and dental expenses (deductible only for government employees)
• Gratuity (deductible only for government employees)
• Severance pay
• Vacation allowance (up to a maximum of one month’s gross salary)
The traveling, subsistence and entertainment allowances are deductible only if it is proven that the allowances were expended for the purposes for which the allowances were granted.
Business deductions. Any expenses incurred wholly and exclusively for the purpose of producing income are deductible.
C. Social security
Contributions. Contributions to the NIS must be made at the following rates on maximum monthly insurable earnings of GYD280,000:
• For employees: 5.6% for employees between the age of 16 and 59 years. No employee contribution is required for employees above the age of 60.
• For employers: 8.4% for employees between the age of 16 and 59 years. The required contribution is reduced to 1.5% for employees above the age of 60.
• For self-employed persons: 12.5% (of their declared income up to GYD280,000)
Totalization agreements. Guyana has entered into social security totalization agreements with the Caribbean Community and Common Market (CARICOM) to provide relief from paying double social security taxes and to assure benefit coverage.
D. Tax filing and payment procedures
The tax year in Guyana is the calendar year. In general, married individuals are taxed separately, not jointly, on all types of income. Every individual receiving income must file an income tax return by 30 April of the year following the tax year. Every individual receiving income from a trade, business, profession or vocation must file an income tax return for the tax year, even if the business operated at a loss.
Employers must deduct tax from employees under the Pay-AsYou-Earn system, and this tax should be declared and remitted to the GRA on or before the 14th day of the following month.
Every self-employed individual receiving income must pay tax in four equal installments on or before 1 April, 1 July, 1 October and 31 December in each tax year. Each installment must equal onequarter of the tax on taxable income for the preceding year. The balance of tax due, if any, must be paid no later than 30 April of the following year.
Nonresidents must file tax returns for any year in which they derive income from Guyana sources. For the filing of returns, nonresidents follow the administrative rules that apply to residents.
The penalty for the late filing of a tax return is 10% of the tax assessed. However, a flat fee of GYD50,000 is payable for failure to file a nil tax return or a tax return that declares a loss. If any tax due is not remitted by the stipulated deadline, a penalty of 2% per month is payable. In addition, interest is applicable at the rate of 18% per year on the late payment of tax.
E. Double tax relief and tax treaties
Unilateral relief. A Guyana taxpayer who proves to the satisfaction of the GRA that he or she has paid income tax on foreign income is entitled to claim a credit for such tax paid against Guyana tax chargeable with respect to that income, as determined under specific rules in the Income Tax Act.
Double tax treaties. Guyana has entered into double tax treaties with the CARICOM Member States (Antigua and Barbuda, Barbados, Belize, Dominica, Grenada, Jamaica, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, and Trinidad and Tobago), Canada and the United Kingdom. Guyana has signed a double tax treaty with the United Arab Emirates, which has not yet been ratified. In general, the credit available may not exceed Guyana tax payable on the underlying foreign-source income.
The treaty with the CARICOM Member States provides for reduced withholding tax rates as well as exemption from tax on income received by the recipient, because the treaty is a sourcebased treaty.
F. Entry visas
Only Guyana citizens and their dependents have the right to enter the country freely. Nonresidents are subject to varying entry requirements. Depending on the nationalities of the individuals, visas may not be required for entry into Guyana.
G. Work visas and/or permits
In general, foreign nationals employed by companies in Guyana must obtain both entry visas (subject to certain exceptions mentioned above) and work permits. The Ministry of Home Affairs requires specific and detailed information before granting work permits to foreign nationals. The government requires that employment opportunities first be offered to Guyana nationals and residents before nonresidents.
In general, CARICOM nationals may be given up to six months for employment purposes on entry into Guyana. If a CARICOM national has a Certificate of Recognition of Caribbean Community Skills Qualification by virtue of being a university graduate or meeting other specific criteria, the person may enter Guyana for a period of six months or some other indefinite period and work in Guyana. Similar rights are granted to the spouse and dependents of the CARICOM national.
Non-CARICOM nationals may be granted up to three months for employment purposes on entry into Guyana. However, the Chief Immigration Officer may extend the initial period granted to two years.
Work permits are non-transferable. If a work permit holder leaves the employer, the work permit is canceled. The employer must inform the authorities that the employee has left the company.
If a foreign national is entering Guyana for the purpose of employment, a landing permit/employment visa must be obtained prior to arrival in Guyana. Subsequent to his or her arrival, a work permit must be obtained.
The following documents with respect to the employee must be submitted to the Ministry of Home Affairs to facilitate the landing permit/employment visa and work permit application processes:
• Landing permit/visa application form
• Work permit application form