Income is defined as any salaries, wages, earnings, gains, profits; including allowances received by an Individual through his employ by an organisation, company, trade, or any form of business. As such, Income Tax is applied to earnings derived from Guyana or elsewhere, and whether it has been received in Guyana or not.
The following changes will be applied to the assessment of Income Tax for the year 2020:
- Seven Hundred and Eighty Thousand Guyana Dollars (G$780,000) or one-third of the Individual’s Income earned on an annual basis, will be allowed as a deduction (or free pay) to determine the chargeable income. [i]
- When determining the tax on the chargeable income for individuals, the following tax rates will be utilized:
- Twenty-eight percent (28%) on Income less than one million, five hundred and sixty thousand Guyana Dollars (G$1,560,000), earned annually.[ii]
- Forty percent (40%) on income in excess of one million, five hundred and sixty thousand Guyana Dollars (G$1,560,000), earned annually.
- National Insurance (NIS) contributions by Employees will be allowed as a deduction in determining the chargeable income.[iii]
[i] Section 20 of the Income Tax Act, Cap. 81:01 further addresses the statutory deduction on Income earned in Guyana.
[ii] Sections 36 and 36A of the Income Tax Act can be referenced for further details on the Income Tax rates.
[iii] Section 16 (1) (k) addresses the deductions of the National Insurance Scheme (NIS) contributions by employees.