Tax Operations and Services
What are the requirements to obtain a Taxpayer Identification Number (TIN)?

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.
What should I do if I have misplaced or damaged my TIN Certificate?

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.

If my address or name has recently changed, will I be required to pay a fee and will a new TIN be needed?

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.

I’m a Self-Employed Person, will I be required to obtain a TIN?

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
Is anyone exempt from applying for a TIN?

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.

 

When is the due date for the submission of Form 5?

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

What is Withholding Tax?

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

Who is responsible for payment of the Withholding Tax?

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.

What percentage of tax are resident contractors required to pay?

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.”.

I’m a Pensioner, will I be required to obtain a TIN?

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.

I am employed, possess a NIS card and a National Identification Card. I would like to know if I still need to use the ID card and the NIS card as a form of identification, now that I have a TIN?

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.

Would the 2% Withholding Tax be applicable if there is no contract?

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

When deducting the 2% withholding tax should it be inclusive of VAT?

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

What is the rate of Withholding Tax on Rental Income for Non-Residents?

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

Is there a timeline to remit the withholding taxes deducted to the GRA?

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.

What are the current rates of tax for a commercial company?

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.”

What is a Certificate of Compliance?

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.

What is a Land Compliance Certificate?

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.

How long is the Land Compliance valid for?

The land compliance is valid for one (1) calendar year but expires on the 30th 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.

How long is the Land Compliance valid for?

The land compliance is valid for one (1) calendar year but expires on the 30th 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

What documents are required to obtain a Land Compliance?

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.

What is the duty for an electric vehicle that is over four years?

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

When is the due date for quarterly advance payment for an individual?

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

1st April

1st July

1st September

31st December

When is the due date for quarterly advance payment for a company?

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
How long should an individual/company keep records and accounts?

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.

If I receive a notice of assessment and I do not agree with it what can I do?

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.

Value Added Tax
When was Value Added Tax (VAT) introduced in Guyana?

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

What is the current Value Added Tax Rate?

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

What is the current VAT Fraction used to determine the VAT charges on items?

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.

Is every business required to charge VAT on the services or goods they provide

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.

How are Mandatory and Voluntary VAT Registration determined?

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.
When are VAT Returns expected to be filed for VAT Registrants?

VAT Returns are due within fifteen working days after the end of each tax period, whether or not tax is payable for said period. For example, for the tax period January 2019, the deadline for the submission of a VAT Return will be within fifteen (15) working days in the month of February 2019 (February 22, 2019). As such, weekends and holidays are always excluded when calculating the deadline.

Can any business register for VAT regardless of their taxable turnover?

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

What is defined as public entertainment?

Public entertainment refers to live entertainment and includes, sporting events such as, boxing, cricket, football, horseracing and motor racing, theatrical performances, comedy shows, dance performances, dances with live bands and any other similar show to which the public is invited.

However, Bar-B-Ques, ‘limes’, fairs or dances with sound systems and disc jockeys playing records are not considered public entertainment for the purpose of VAT.

Who is considered a promoter of public entertainment?

For VAT purposes a promoter of public entertainment is defined as a person who arranges the staging of public entertainment and any musical entertainment, sporting event, theatrical performance, comedy show, dance performance, circus show, any show connected with a festival, or any similar show to which the general public is invited; but does not include entertainment organised by, an approved educational institution; or the board of management or a parent teacher association of an approved educational institution; or a person who provides entertainment on a daily or weekly basis; or a religious organisation.

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