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.

Anti-Money Laundering, Countering the Financing of Terrorism and Proliferation Financing

Money laundering is the processing of criminal proceeds to disguise or conceal their illegal origin (FATF).

It simply means the process by which criminals make ‘dirty’ money obtained from their criminal activities look legitimate, or ‘clean’.

 “Financial Action Task Force” means the task force established by the Group of Seven (G-7) Summit that was held in Paris in 1989, to develop and provide national and international policies to combat money laundering and terrorist financing

Terrorist financing means wilfully providing or collecting funds whether from a legitimate or an illegitimate source, by any means, directly or indirectly, with the unlawful intention that they should be used or in the knowledge that they are to be used in full or in part
(a) to carry out, terrorist acts;
(b) by a terrorist organisation; or
(c) by an individual terrorist;

A terrorist means any natural person who –

(a) commits, or attempts to commit, terrorist acts by any means, directly or indirectly, unlawfully and willfully;
(b) participates as an accomplice in terrorist acts;
(c) organises or directs others to commit terrorist acts; or
(d) contributes to the commission of terrorist acts by a group of persons acting with a common purpose where the contribution is made intentionally and with the aim of furthering the terrorist act or with the knowledge of the intention of the group to commit a terrorist act;

Proliferation Financing includes the act of providing funds or financial services which are used, in whole or in part, for the manufacture, acquisition, possession, development, export, trans-shipment, brokering, transport, transfer, stockpiling or use of nuclear, chemical or biological weapons and their means of delivery and related materials (including both technologies and dual use goods used for non-legitimate purposes), in contravention of the provisions of any or, where applicable, international obligations.

A Reporting Entity is any person whose regular occupation or business is the carrying on of:

(a) any activity listed in the First Schedule; or
(b) any other activity defined by the Minister responsible for Finance as such by an order published in the Gazette amending the First Schedule

The statutory responsibilities/ obligations of the RE’s are articulated in Sections 15, 16, 18, 19 and 20 of the AML/CFT Act of 2009 and are as follows:

• Register with the FIU
• Appoint a compliance officer who shall be responsible for ensuring the reporting entity’s compliance with the requirements of the AML/CFT Act.
• Conduct Customer Due Diligence (CDD) and Enhanced Customer Due Diligence (ECDD) by identifying and verifying the identity of customers.
• Create a policy manual to ensure that your reporting, record keeping and client identification requirements are being adhered to.
• Maintain all customer records relevant to transactions, for at least seven (7) years.
• Conduct AML/CFT training with employees (where applicable) on a regular basis to ensure that they are up to date with new AML/CFT requirements and obligations.
• Submit monthly Threshold Transaction Reports (TTRs), quarterly Terrorist Property Reports (TPRs) and Suspicious Transaction Reports (STRs) to the FIU.
• Establish and maintain independent audit

Yes.

The FIU is an agency established under the AML/CFT Act 2009 and is tasked with, among other things, ensuring the FATF recommendations are implemented locally. It is the primary agency for collecting information and gathering intelligence to be used in combating money laundering and terrorist financing.

The FIU is located at Lot 49 Main and Urquhart Streets, Georgetown (Ministry of Finance Compound).

A Reporting Entity (RE) has to complete the FIU’s registration form and submit it along with the following supporting documents:

1. Business Registration/ Articles of Incorporation
2. Licence issued by the GRA (Dealer’s/Pawnshop/ House Agent)
3. Owner’s identification (Passport, National ID)
4. Recent Financial Statements/ Statement of Projection (newly established entities)

No, the FIU’s registration is a one-off registration and it is free of charge. However, reporting entities are required to notify the FIU about any changes made to the entities’ Business Registration/ Articles of Incorporation or Compliance Officer.

Yes, the FIU will conduct training which will provide in-depth knowledge of AML/CFT/PF, obligations of the Reporting Entity and the roles of the Supervisory Authority.

The main responsibilities of a Compliance Officer are:

• Designing and implementing the RE’s AML/CFT Compliance Program;
• Ensure the RE’s compliance with AML/CFT legislative requirements, as well as the RE’s AML/CFT procedures, policies and controls;
• Act as the liaison between the RE and the FIU;
• Prepare and submit reports to the FIU; and
• Organising and arranging AML/CFT training for the entity’s staff.

A Politically Exposed Person is any individual who is or has been entrusted with prominent public functions on behalf of a state, including a Head of State or of government, senior politicians, senior government, judicial or military officials, senior executives of state owned corporations, important political party officials, including family members or close associates of the politically exposed person whether that person is resident in Guyana or not.

All single transactions equal to and above the threshold limit of Two Million Dollars ($2,000,000.00), or a group of related transactions that occur within the same reporting period (calendar month) that together exceed the reporting threshold.

All single transactions equal to and above the threshold limit of Three Hundred Thousand Dollars ($300,000.00), or a group of related transactions that occur within the same reporting period (calendar month) that together exceed the reporting threshold.

All single transactions equal to and above the threshold limit of Two Million Dollars ($2,000,000.00), or a group of related transactions that occur within the same reporting period (calendar month) that together exceed the reporting threshold.

The UN Sanctions List is a UN-issued list of countries and individuals that face economic, trade, or diplomatic limitations due to their criminal or peace-violating activity.

Reporting entities are usually updated via email of all updates to the UN Sanction List by their Supervisory Authority.

Also, the updated UN Sanction List can be accessed on the FIU’s website: https://fiu.gov.gy/

Reports can be submitted to the FIU either:

• Electronically: CaseKonnect.fiu.gov.gy (preferred)
• Manually: (Mr. Matthew Langevine)

The Director
Financial Intelligence Unit
C/o Ministry of Finance Compound
49 Main and Urquhart Streets
North Cummingsburg
Georgetown
Guyana

Subsequent to registration, the FIU will conduct training with the reporting entity and issue a letter specifying the period/ month from which reporting must begin.

The format for the different reports are provided by the FIU.

Supervisory Authorities are designated competent authorities with responsibilities aimed at ensuring compliance by reporting entities with the requirements of the AML/CFT legislation to combat money laundering and terrorist financing.

Section 22 of the AML/CFT Act 2009 details the Roles of the Supervisory Authority (SA). The key roles are as follows:

• Examine and supervise the reporting entities, and regulate and oversee effective compliance with the obligations set out in the AML/CFT legislation and any other preventive measures in relation to combating money laundering and terrorist financing;
• Issue instructions, guidelines or recommendations and provide training to reporting entities on their obligations and requirements under the AML/CFT legislation;
• Ensure that the reporting entities update their AML/CFT Compliance Program in keeping with any amendments to the AML/CFT legislation.
• Enter into the business premises of a reporting entity during ordinary working hours in order to:

(i) inspect or take documents or make copies or extracts of information from such documents;
(ii) inspect premises; and
(iii) observe the manner in which certain functions are undertaken, and require any person on the premises to provide an explanation on any such information.

• Impose sanctions on reporting entities for non-compliance with AML/CFT obligations; and the FIU accordingly.

The respective Supervisory Authority can institute any of the following Sanctions as outlined in Section 23 of the AML/CFT Act:

• Administrative Sanctions
  • Written warnings
  • Order to comply with specific instructions
  • Order regular reports from the RE on the measures it is taking
  • Prohibit a convicted person from employment within the RE
  • Recommend that the reporting entity’s licence/registration be suspend, restrict or withdraw.
  • Removal of defaulting director or senior manager from board.
  • A fine of five to fifteen million dollars.

• Criminal sanctions
  • A reporting entity or any of its directors, managers, officers or employees that breaches its obligations under the AML/CFT legislation can also be sanctioned criminally.
  • In the case of a breach by an individual, the penalty is a fine of five to fifteen million dollars; and imprisonment for up to three years, and in the case of a breach by a company/body corporate, the penalty is a fine of between fifteen to forty million dollars.