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Income Tax

Income Tax

July 31, 2019

Any income which is immediately derived from a trade, business, profession or vocation either as an individual, or, in the case of a partnership, or any income arising from any gains or profits including any allowance, from any employment held by an individual will be deemed as Income earned.

Therefore, Income Tax will be applicable and payable at the rate or rates specified for each year for which an assessment will be made on the income earned, whether same was accrued in or derived from Guyana or elsewhere, and whether received in Guyana or not.

Income Tax

July 19, 2019

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:

  1. 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]
  2. 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.
  1. 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.

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