Section 39(1)(c) of the Income Tax Act Chapter 81:01 has been amended in accordance with the Fiscal Enactments (Amendment) Act 2022, Act No. 5 of 2022 with the inclusion of the following Proviso:
Section 39 (1)(c) of the Income Tax Act Chapter 81:01 now reads as follows, “There shall be levied and paid income tax (in this Act referred to as withholding tax) at the rate set out in the Third Schedule-
(c) on 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.
Provided that withholding tax is not payable when an individual’s total interest income does not exceed ten thousand dollars per annum.”
Therefore, financial institutions are advised that taxes should only be withheld when the individual’s total interest earned exceeds Ten Thousand Guyana Dollars (G$10,000).
Any taxes withheld on the affected accounts and not remitted to the Guyana Revenue Authority should not be remitted but recredited to the Accounts of these persons.
Please note that the reporting requirement remains unchanged. Hence, Financial Institutions should continue to report such income, though not taxable, for reconciliation purposes.
This measure is effective from January 1, 2022.
By Order of
Mr. Godfrey Statia
Guyana Revenue Authority