This policy is intended to offer the guiding principles regarding 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-
a) the purchase of land for constructing a residential building;
b) The construction of a residential building; or
c) The acquisition of a residential building’
In order for an individual to be eligible for Mortgage Interest Relief, the applicant(s) must be a first-time home owner who occupies the property and the principal amount borrowed must not exceed Thirty Million Dollars ($30,000,000). This took effect from January 1, 2020.
The applicant(s) must ensure that the following documents are submitted when an application is made to the Guyana Revenue Authority:
1. Completed Application Form (Form 1)
2. Letter by Lender (Form 2)
3. Schedule by lender showing yearly interest
4. Copy of Transport/Title Certificate of Property/Lease Agreement/Letter of Assurance issued by the Ministry of Housing
5. Loan Agreement with Lending Institution
6. Copy of Sale and Purchase Agreement if applicable.
7. Copy of Applicants ID/Passport/Drivers Licence
8. Tax Return to be filed for the past 8 years and all taxes should be paid
9. Pictures of property i.e. (front, back and two sides)
10. Proof of the elected Mortgagor’s saving account number, Bank Transit Number or Routing Code
11. Cellular number, home landline numbers
12. Active Email address
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 the 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) where all critera are satisfied. Thereafter, the applicant will be required to attach the original Form 4 received from their Lending Institution along with the Emolument or 7B2 Slip or Income and Expenditure Statement wherever applicable when submitting their Income Tax Return.
The payment of Mortgage Interest Relief will be based on the applicable tax rate for the year in which the claim is being made.
Contact Us:
Tax Advisory Services Section
Communications & Tax Advisory Services Division
Guyana Revenue Authority
200 -201 Camp Street
Georgetown
Guyana
Tel: 227-6060 | 227-8222 Ext: 8000
Email: taxadvisory@gra.gov.gy | gravat@gra.gov.gy
Website: www.gra.gov.gy
