The Guyana Revenue Authority (GRA) wishes to outline for the benefit of the taxpaying public the requirements for the disposition of property as outlined under the Capital Gains Tax Act, Chapter 81:20.

Section 7A(3) of the Capital gains Tax Act, Chapter 81:20 states as follows:

A person’s acquisition of property and the disposal of it to him shall for the purposes of this Act be deemed to be for a consideration equal to the market value of the property where he acquires the property otherwise than by way of a bargain made at arm’s length and in particular where he acquires it by way of a gift or by way of distribution from a company in respect of shares in the company and where the Commissioner-General is dissatisfied with the amount of consideration stated for the disposal or acquisition of any such property, he may reject such consideration and substitute therefor the market value of a competent valuer.

Further, Section 2 (a) of the said Act defines Capital Gains as:

“… the amount by which the value of that property at the time when such change of ownership occurs exceeds the cost of acquisition or its value at the time when it was acquired by that person or the market value as at 1st January, 2011, whichever is later”;
and
“market value” means the price which could reasonably have been obtained for that property in the open market on the date on which it was acquired.

In view of the above, the Guyana Revenue Authority (GRA) wishes to inform the general public that a Valuation Certificate is not a requirement when applying for a Certificate of Compliance for a transfer of the said property.

Rather, it is only where the Commissioner-General is dissatisfied with the amount of consideration stated for the disposal or acquisition of any such property, that he may so request a valuation.

For additional information on the procedure to obtain a Certificate of Compliance for disposal of a property, please visit the GRA website: www.gra.gov.gy/tax-services/compliance