EMPLOYERS ARE REMINDED OF THEIR OBLIGATIONS TO DEDUCT AND REMIT TAXES FROM THE EMOLUMENTS OF THEIR EMPLOYEES in accordance with section 93(1) of the Income Tax Act, Chapter 81:01, REGARDLESS OF WHETHER SUCH EMPLOYEES ARE ON CONTRACT, AND REGARDLESS OF THE INDUSTRY THE EMPLOYER OR THE BUSINESS ENGAGES OR OPERATES.
IT IS NOT WITHIN THE PURVIEW OF EMPLOYERS TO DETERMINE WHETHER THE PERSON SO EMPLOYED IS UNDER A CONTRACT FOR SERVICE OR A CONTRACT OF SERVICE. Such a determination can only be made by the Revenue Authority, subject to the proviso as set out in Section 93(1) of the said Act.
EMPLOYERS WHO PRESENTLY ENGAGE IN THIS PRACTICE ARE INSTRUCTED TO CEASE AND DESIST FROM DOING SO, AND COMMENCE PAYE DEDUCTIONS IMMEDIATELY. The failure to comply with the provisions and regulations set out above will make the employer liable for the payment of the tax (PAYE) not deducted, together with the relevant penalties and interest for their failure to deduct and remit as legally required.
PAYE INSPECTORS WILL BE MAKING VISITS TO ENSURE COMPLIANCE WITH THE SAID REQUIREMENTS.
Further, in accordance with Section 61 of the Income Tax Act, Chapter 81:01 and the Income Tax (Deduction of Tax from Emoluments) Regulations (1991) made under Section 117 of the Income Tax Act, Chapter 81:01, ALL payment of emoluments to ALL employees (resident/non-resident/contract of/for service) is required to be disclosed on the prescribed Forms 2 and 5.
Form 5’s are submitted together with the remission of the applicable taxes on or before the 14th day of each month, following the month of payment, while Form 2s are submitted on or before February 28, in the year of assessment.
All the columns contain therein the Form 2 and 5 are mandatory fields and must be completed before submission.
Employers are encouraged to register for e-Services at eservices@gra.gov.gy and make such submissions electronically.
