In 2013, the Guyana Revenue Authority (GRA) commenced approving Mortgage Interest Relief (MIR) to taxpayers who meet the criteria set out in Section 20A of the Income Tax Act Chapter 81:01 and supporting regulations.
A deduction is given in respect of the amount of interest paid on a mortgage or loan taken out by an individual for:
- The purchase of land to construct a residential building or
- The construction of a residential building or
- The acquisition of a residential building
The deductions are limited to twenty-eight percent (28%) and or forty percent (40%) interest paid on the principal sum of a loan not exceeding G$15M.
Banking/ Lending Institutions are therefore requested to provide the necessary assistance to taxpayers seeking their Mortgage Interest Relief. In ensuring the completion of the application procedure, taxpayers will be required to submit the following documents to their respective bank for their input:
- The Letter by Lender (Form 2); and
- The Schedule of Interest, if necessary, to the approved Lending Institution for completion