In 2013, the Guyana Revenue Authority (GRA) introduced Mortgage Interest Relief (MIR) which is a deduction on the amount of interest you pay on a mortgage or loan. The relief takes the form of a tax refund that the GRA credits to you.
What types of mortgage must I be seeking to benefit from the Mortgage Interest Relief?
Section 20A (1) of the Income Tax Act, Chapter 81:01 states that “subject to this Act and the Regulations made under it, in ascertaining the chargeable income of an individual who was resident in Guyana in the year immediately preceding the year of assessment, there shall be allowed a deduction of the interest paid on housing mortgage loans owed by the individual to licensed financial institution or approved mortgage finance companies for-
- the purchase of land for constructing a residential building;
- The construction of a residential building; or
- The acquisition of a residential building”
Am I eligible to obtain a Mortgage Interest Relief (MIR)?
To be eligible for Mortgage Interest Relief, the applicant must be a first time home owner who occupies the property; and the principal amount borrowed must not exceed fifteen million dollars (G$15,000,000).
What requirements must I meet in order to commence my MIR process?
The applicant must ensure that the following documents are submitted when an application is made to the Guyana Revenue Authority:
- Completed Application Form
- Letter by lender (form 2)
- Schedule by lender showing yearly interest
- Copy of Transport/Title/lease agreement
- Loan Agreement with lending institution
- Copy of sale and purchase agreement in absence of Transport/Title/lease.
- Copy of Identification Card or Passport
- Pictures of property (front, back and two sides)
- Proof of the elected Mortgagor’s savings Account Number.
Additionally, the applicant (s) must be resident in Guyana. the sole or joint owner of the property and sole or joint borrower of the mortgage.
All relevant returns must be filed and taxes paid. Applicant (s) must satisfy all of the criteria, to be eligible for approval of Mortgage Interest Relief.
Moreover, in cases where part of the property is being rented, the applicant must declare the income earned and pay relevant taxes where applicable.
Further, if a transport, title or lease has two or more names as the owners of the property, only one person would be eligible to receive the Mortgage Interest Relief.
An approval letter will be issued to the applicant (s) once all criteria are satisfied. Thereafter, the applicant will be required to attach the original Form 4 received from their lending institution along with the emolument or 7B slip or Income and Expenditure statement, wherever applicable when submitting their Income Tax Return.