|
|
|
CORPORATE TAX (Cont'd)
Nature of Tax Rates |
Percent |
| Assets tax, on net assets; levied on worldwide assets of companies and on assets located in Guyana of non-residential companies; imposed on amounts Not exceeding G$1,500,000 |
0 |
| Exceeding G$1,500,000 but not exceeding G$5,000,000 |
0.5 |
| Exceeding G$6,500,000 |
0.75 |
| Social Security contribution (National Insurance Scheme), imposed on monthly earnings of up to G$113,660 and weekly earnings of up to G$26,229. |
|
| Employer |
7.8 |
| Employee |
5.2 | |
Class of Assets |
Percent |
| Aircraft |
33 1/3 |
| Boats |
10 |
| Buildings (housing and industrial) |
5 |
| Furniture and Fittings |
10 |
| Motor vehicles |
20 |
| Office Equipment: |
|
| Electronic including Computers and Computer Software |
50 |
| Other |
15 |
| Plant and Machinery |
20 | |
Office buildings and structures used for trading are not entitled to any capital allowances.
Export Allowance. Companies may deduct an export allowance if they export non-traditional products to non-CARICOM countries. Non-traditional products include vegetables, furniture, fish and plants. Products that do not qualify for the allowance include bauxite, diamonds, gold, lumber, prawns, rice, rum and sugar.
The export allowance is computed by applying a specified percentage to export profits. The following are the deductible percentages of export profits.
|
Export sales as a percentage of total sales |
Deductible percentage |
Exceeding |
Not Exceeding |
Of Export Profits |
|
%
0
9.9
21
31
41
51
61 |
%
9.9
21
31
41
51
61
- |
%
0
25
35
45
55
65
75 | |
For the purpose of the export allowance, export sales and export profits include only those sales and profits derived from exports of products qualifying for the export allowance.
Relief for Losses. Companies may carry forward losses for an unlimited number of years, but the losses may not reduce the taxable income in any year by more than 50% or the tax payable to less than 2% of turnover. Loss carry-backs are taxed separately.
Groups of Companies. There are no provisions in the law relating to group taxation. All companies are taxed separately.
D. Other Significant Taxes
The table above summarizes other significant taxes.
E. Miscellaneous Matters
Foreign – Exchange Controls. The Guyanese currency is the Guyanese dollar (G$).
Guyana does not impose foreign exchange controls. Foreign exchange is freely traced at bank and non-bank cambios (places for the exchange currency).
Debt-to-Equity Rules. There are no required debt-to-equity ratios, but foreign companies must obtain permission to borrow locally.
Controlled Foreign Companies. No specific controlled foreign company rules apply.
Anti-avoidance Legislation. A provision in the law allows the Commissioner of Inland Revenue to apply the unitary system of taxation. Under this system, for a company that is part of a group, income tax is calculated by applying to the group’s worldwide profits a ratio of the company’s turnover in Guyana to the group’s worldwide turnover.
F. Treaty Withholding Taxes
| Dividends |
Interest Royalties |
|
% |
% |
% |
| Canada |
15 |
10 |
15 |
| United Kingdom |
15 |
19 |
15 |
| Non-treaty countries |
15 |
15 |
10 |
|
|
|
| |
|
