File A Self-employed Return

What do you need to know:

If you work for yourself and you are responsible for setting the charges for the goods or services you provide, you can be categorized as a ‘self-employed person’. Examples of “self-employed” include the following:

• Professionals in private practice viz. Doctors, Lawyers, Accountants, Engineers, etc.
• Minibus/Taxi Owners
• Farmers
• Contractors/Sub-contractors
• Real Estate Agents
• Wholesalers/Retailers
• Vendors/Shop/Stall Owners
• Barbers/Hairdressers

Self-Employed persons earning an income in excess of $780,000 annually, or $65,000 per month, for the year 2021 must submit an Income Tax Return and pay outstanding taxes by April 30, in each year the taxes are being assessed. Further, if you are earning an income below the annual threshold of $780,000, you are still required to file an Income Tax Return, along with your Income and Expenditure Statement.

You are reminded that in cases of income earned from multiple sources in 2021, you are still entitled to an annual statutory deduction of $780,000.

Taxpayers lodging their Returns with the Guyana Revenue Authority are to ensure that a lodgement receipt ‘stamped and signed’ by the GRA Officer has been issued for each year (period) that a Return was lodged. This receipt serves as proof that you have filed your Income Tax Return.

Additionally, self-employed persons are required to pay Income Tax (Advanced Taxes) on a quarterly basis. The Taxes paid each quarter are based on the previous year’s income as reported in your Income Tax Return.

NOTE: To successfully apply the correct calculations, your total taxes for the previous year should be divided by four, which will give you your Quarterly Instalments for the current year. If this is your first year of business, it is calculated based on your anticipated income for the current year.

Advance Taxes are due on or before the following dates:

• April 1
• July 1
• October 1
• December 31

For assistance with your Income Tax calculations, use our Income Tax Calculator

What expenses are deducted from your income:

As a self-employed person, it is expected that you will be affected by a number of expenses in the operations of your business; whether that is the wear and tear of vehicles used in the operations of your business or whether repairs have occurred to the equipment used in the operations of your business. In this regard, we have listed a number of deductible expenses that can be applied when filing your Income Tax Return:

• Salaries and wages paid;
• N.I.S. paid on behalf of employees;
• Bank interest and charges;
• Stationery, postage, and stamps;
• Rent, rates, and taxes;
• Motor vehicle operating expenses;
• Repairs;
• Electricity and telephone;
• Maintenance of plant, machinery, and equipment.

NOTE: The following expenses will not be accepted as deductible expenses from any Income earned:

• Domestic and private expenses e.g. school children fees, electricity charges for residential purposes.
• Any disbursement or expenses not being money wholly and exclusively expended or laid out for the purpose of acquiring the income;
• Any capital employed in improvements, except land development expenditure incurred for agricultural purposes and allowed to be expressed against income over a period of ten (10) years;
• Any capital withdrawn or any sum employed or intended to be employed as capital;
• Any sum recoverable under an insurance or contract of indemnity;
• Rent of or cost of repairs to any premises or part of premises not paid or incurred for the purpose of producing the income;
• All Income, Property, and Capital Gains Taxes.