FAQs – Frequently Asked Questions

Promoters of public entertainment and Auctioneers are required to register for VAT regardless of their turnover.

VAT Returns are due within twenty-one working days after the end of each tax period, whether or not tax is payable for the said period. For example, for the tax period January 2019, the deadline for the submission of a VAT Return will be within twenty-one (21) working days in the month of February 2019 (February 22, 2019). As such, weekends and holidays are always excluded when calculating the deadline.

The criteria governing Mandatory Registration in accordance with the VAT Act, are as follows:

1. Where the taxable activity equals or exceeds the threshold of Fifteen Million Guyana Dollars (G$15,000,000.00) at the end of twelve (12) months, or where the taxable activity exceeds the threshold in less than 12 months, the person carrying on the taxable activity MUST register for VAT, and
2. Where the taxable activity is expected to exceed the threshold in any period during the next twelve months, the person carrying on the taxable activity MUST

If your taxable turnover is below the G$15,000,000.00 threshold, you may apply for Voluntary Registration. However, applicants for voluntary registration must satisfy the following criteria:

• The applicant’s business and business location must be easily identifiable.
• The applicant must demonstrate to the Commissioner-General’s satisfaction, the ability to maintain records in accordance with the requirements of Section 60 of the VAT Act.
• The applicant must demonstrate to the Commissioner-General, the intention to make taxable supplies. Where the applicant’s business operations have not yet begun at the time of application, or if the applicant has carried on the business for less than a calendar year, evidence of bank loans and revenue projections, contracts or other details of arrangements to make taxable supplies, feasibility studies, purchase of capital equipment, and similar information, may be accepted by the Commissioner-General as evidence that the applicant intends to make taxable supplies.

A business must first be registered with the Guyana Revenue Authority to charge Value Added Tax. Upon the successful registration for VAT, a VAT Certificate will be issued, which must be displayed in a conspicuous manner at the location/ business where taxable activities will be conducted.

To determine the VAT charges on a good or service, the GRA utilises the fraction 7/57. Under Section 2 of the VAT Act, Cap. 81:05 the VAT Fraction is calculated using the formula R/(1+R); where R is the rate of tax applicable to the taxable sale (14%). Therefore, the VAT fraction is determined as follows 14%/ (1+14%) = 7/57.

Following changes to the legislation, Value Added Tax was reduced from 16% to 14% in 2017.

Value Added Tax or VAT as commonly used, was introduced on January 1, 2007, replacing consumption taxes.

The current rate is 27 ½ %

The rate of depreciation is 20%

According to Section 78 (2) of the Income Tax Act, Chapter 81:01, if you disagree with a notice of assessment, you are required to submit a letter of objection. It must outline the grounds for the objection.

Subject to section 65 (1) of the Income Tax Act, Chapter 81:01, records and accounts must be kept for a period of at least eight years after the completion of the transaction.

Pursuant to Section 117of the Income Tax Act, Chapter 81:01 (Payment of Tax by Companies), Regulations, paragraph 3(b), the due dates are as follows:

• March 15
• June 15
• September 15
• December 15

Pursuant to Section 69 (1) of the Income Tax Act, Chapter, 81:01, the due dates are as follows:

1^st April

1^st July

1^st September

31^st December

No taxes would be applicable, on the importation of electric vehicles over four years.

A Compliance Certificate for Land, is a legal document issued by the Guyana Revenue Authority which allows a person to transfer ownership of a property from one individual to another, either by sale or gift.

The land compliance is valid for one (1) calendar year but expires on the 30^th April each year. Once issued, a Certificate of Compliance granted for sale/transfer of land/property expires on April 30 of the year, following the date of issue

Upon making an application for a Land Compliance Certificate, the following documents must be submitted to the Compliance Section:

1. Transport/Title/Lease
2. Agreement of Sale
3. Valuation as at 1.1.2011, if property acquired before, or a current valuation
4. Power of Attorney (POA), if acting on behalf of another individual
5. Documentary evidence of capital improvement done after acquisition of land/building and other expenses incurred in the transaction
6. National Identification Card or Passport
7. TIN (Vendor and Purchaser)

In addition, the applicant must ensure that they submit all Tax Returns and pay all taxes due for the previous eight (8) years prior to his/her application.

Only the following persons are exempt from applying for a Taxpayer Identification Number:

• Any person under the age of fifteen years (15yrs);
• Temporary persons not in receipt of income, where the total period of residence in Guyana does not exceed one hundred and eighty-three (183) days in the year.
• A person who satisfies the Revenue Authority that he is not in receipt of an income or not required to furnish a return of income under this section.

Yes. As a self- employed person you would require a TIN once you meet any of the following conditions:

(a) If you have income for which you are required to file an income tax return.

(b) If you are required to conduct any transaction with any of the following agencies:

• State Agencies/Government Departments
• The Customs and Trade Administration
• Licence Revenue Office
• Internal Revenue Office
• Value Added Tax and Excise Tax Department
• Public Corporations registered under the Public Corporation Act such as NIS

Where changes were made to the taxpayer’s address or name, no fees will be charged to effect these changes. It is advised, however, that you inform the Guyana Revenue Authority of these changes immediately. The TIN represents the data utilised by the GRA to facilitate tax transactions (such as tax assessments; refunds, etc). Hence, failing to provide the updated information may hinder this process. While the taxpayer will not be required to re-apply for a TIN, the information for which the changes apply must be provided to the Central Data Processing and Verification Division. As such, proof of the new address and or name change must be provided to effect these changes. A new TIN Certificate will then be re-issued. It is also advised that the previously issued TIN Certificate be returned to the GRA.

If you have misplaced or damaged your TIN Certificate, then the following applies:

A fee of G$2,000.00, will be applied for the re-print of your TIN Certificate. Your valid identification (bio-data page of your Passport or the National ID Card), must be presented when requesting a re-print of the Certificate.

If the Certificate was damaged, it is advised that you return same to the Central Data Processing & Verification Division.

A Taxpayer Identification Number (TIN), is defined as a computer-generated number issued to individuals, businesses or corporations, a special body or Government Department transacting business with the Guyana Revenue Authority (GRA), Commercial Bank or a Public Corporation. The GRA is the only agency authorised to issue a TIN; the TIN is issued in the form of a Certificate by the Central Data Processing & Verification Division.

If a holder of a TIN Certificate, misplaces or damages his Certificate, he/she must request a new Certificate from the GRA. However, the Taxpayer Identification Number will remain the same.

If you are applying for a new TIN Certificate the following must be met:

Fee: G$1,000.00

Documents:

1. A Completed Application Form
2. Proof of Address (utility bill; bank statement; letter issued through the Post). If the applicant chooses to utilise a letter sent through the post, then the letter must be presented in the envelope stamped by the Guyana Post Office Corporation). If the applicant does not have a proof of address he/she can utilise the address of the person with whom they reside. It must be noted however, that the individual to whom the address applies, must also provide a copy of their valid identification, submitted along with a Testimony Form
3. Original and copy of a valid form of Identification (Bio-data page of Passport; ID Card) – If the applicant is utilising someone else’s address as indicated at number 2, then the person to whom the address applies, must also provide a copy of their valid identification.

A Certificate of Compliance is a document issued by the GRA to an individual or company as proof that all outstanding tax returns were filed and taxes due, paid.

The current rate of tax for a commercial company is 40% of the chargeable profit.

Subject to Section 10 (1) (b) of the Corporation Tax Act, Chapter. 81:03, tax shall be paid at the rate of 40% of the chargeable profit of a commercial company other than a telephone company.

(Regarding a telephone company, tax shall be paid at the rate of 45%; and tax shall be paid at the rate of twenty-seven and one half percent of the chargeable profit of any other company.)

Additionally, it should be noted that pursuant to Section 10 (2) (a) of the Corporation Tax Act, there “shall be a dual rate of corporation tax for companies that are engaged in commercial and non-commercial activities.”

As it relates to companies that are engaged in both commercial and non-commercial activities, Section 10 (2) (b) of the Corporation Tax Act, Chapter 81:03, stipulates that “the non-commercial activity of the company shall be taxed at the rate of twenty-seven and one half percent and the commercial activity of the company shall be taxed at the rate of forty percent.”

Yes, within thirty (30) days the person shall account for and pay over the withholding tax in respect of the rental income on the withholding tax declaration form. This is pursuant to section 39 (2) of the Income Tax Act, Chapter. 81:01.

When the 2% Withholding Tax is computed, it should be calculated exclusive of VAT.

The rate is 20% of the gross amount received, subject to Section 39 (1) of the Income Tax Act, Cap. 81:01; Rates of Withholding Tax (Third Schedule to the Act

In order for the 2% Withholding Tax to be applicable there must be a written contract, sub contract or purchase order.

Pursuant to Section 39 (13) of the Income Tax Act, Chapter. 81:01, resident contractors are required to pay 2% Withholding Tax (WHT) to the GRA on each payment disbursed to them in excess of Five Hundred Thousand Dollars ($500,000.00). A contractor is defined under the amended Subsection 14 of the Act as “any person who is a resident and who has been awarded a contract for providing or supplying independent personal services for reward, other than as an employee.”.

The tenant or whoever is managing the non-resident affairs is responsible for withholding 20% of the rental income and remitting it to the GRA.

Subject to section 39 (1), Cap. 81:01, Withholding Tax is a tax levied on income (e.g. interest or dividends) paid to a non-resident person

Pursuant to Section 117 of the Income Tax Act, Cap. 81:01; Deduction of Income Tax (Employments) Regulations, the due day is the 14^th day of every month for the previous month..

Yes. The Taxpayer Identification Number (TIN) does not replace any of the government issued cards nor does it replace your passport.

The TIN is issued by the Guyana Revenue Authority to taxpayers/individuals who will have to conduct business with the GRA, Public Corporations and or the Central Bank.

It means that entities such as the National Insurance Scheme can request that you present your TIN when transacting business with them but it is not to be used instead of these cards.

 You should also be reminded that TIN is a NUMBER and only replaces numbers previously issued by GRA.

Yes. While pension may not be taxable, Section 4 of the Income Tax Amendment Act, No. 15 of 2006, states, “Every employer shall record on the return made under section 61(2) the TIN of every employee, pensioner or annuitant from whose emoluments, tax was deducted or to whom he paid a pension or annuity. Therefore, even though you are a pensioner the company from which you receive your pension could ask you to provide it with your TIN.

It should be noted that the TIN is not confined to taxpayers but rather anyone who would require the “services” of the GRA. Hence, pensioners who have other assets are advised to obtain a TIN since they may need to do transactions with the GRA at some time.