Premium Tax is referred to as an assessment levied by a state, usually on the premium collected by insurance companies.
In accordance with Section 57 of the Income Tax Act, Chapter 81:01, a premium paid to a company in respect of insurance other than long-term insurance, outside Guyana, attracts Premium Tax. Once a foreign Insurance Company has not established a place of business in Guyana, the tax is paid at a rate of 10%, while 6% is paid by those insurance companies within Guyana. Withholding tax is paid on gross payments on interest earned on savings accounts held at commercial banks and other financial institutions and on gross payments from interest earned on loans secured by bonds and similar instruments by any person resident in Guyana or not.
Insurance Companies have an obligation to remit to the Guyana Revenue Authority Premium Tax in a timely manner. In accordance with Section 57 (3) of the Income Tax Act, failure to comply with the requirements for the payment of Premium Tax is an offense.
Once premiums are received by an insurance company in Guyana, the obligation to deduct the tax and to render an account to the Commissioner- General is the responsibility of the Insurance Company. However, if a company is making the payment of the premium, the account should be rendered by a Manager or other Principal Officer of the company.
What to note before submitting your Premium Tax Summary Declaration
- Premium Tax Summary Declaration is due on the 14th of each month. You are encouraged to file as early as possible.
- The Return and all required supporting documents must be submitted to the Guyana Revenue Authority Headquarters, at any of the GRA’s Regional Integrated Tax Offices or P.O Box 10406.
- All fields within the Return should be completed. Where a line item is not applicable, you should use “None”, “-” (a dash), or “0″ if the item is a numeric field. Failure to do so could result in any enquiry and delay in the processing of your return.
- The Declaration Section must be completed and Return signed.