Withholding Tax - Information

 

Withholding Tax is income tax withheld from employees’ wages and paid directly to the Government, by the employer. A tax levied on income (interest and dividends) from securities owned by a non- resident. The amount withheld is a credit against the income taxes the employee must pay during the year. Tax is deducted not only from dividends but from other income paid to non-residents of a country.

The rate tax of payments is set out based on:

  • Any gross distribution made to any person not a resident in Guyana
  • Gross payment, being interest earned on savings accounts held at commercial banks and other financial institutions by any person whether resident in Guyana or not
  • Gross payment, being interest earned on loans secured by bonds and similar instruments by any person whether resident in Guyana or not
  • Every discount earned on treasury bills by the person who discounts the bill whether on or before maturity

A person not resident in Guyana (non-resident person) whether a Commonwealth citizen or not, shall be assessable and chargeable in the name of his trustee, guardian, or committee, or of any attorney, factor, agent, receiver, branch, or manager, whether either party has the receipt of the income or not, like manner and to the like amount as the non-resident person would be assessed and charged if he were resident in Guyana and in the actual receipt of that income.

Where a person is exempt from Corporation Tax under Section 7 of the Corporation Tax Act Chap. 81:03 that person shall also be exempt from Withholding Tax under this Act.

For any person who is in Guyana for some temporary purpose only and not with intent to establish his residence therein, who has not actually resided in Guyana at one or more times for a period equal in the whole to six months in the year preceding the year of assessment is not required to pay tax in respect of any income arising.