Re: The reason why Guyana needs Tax Reform
The Guyana Revenue Authority (GRA) would like to respond to a letter published in the October 12, 2017 edition of Kaieteur News captioned “The reason why Guyana needs Tax Reform” which was submitted by Mr. Sase Singh, and to correct several inaccuracies mentioned in the letter on the rate of Corporation Tax.
The GRA wishes to remind the writer and the general public that Section 10 of the Corporation Tax Act was amended in 2017 to reduce the Corporation Tax rate for non-commercial companies from 30% to 27.5%. Additionally, provisions were also made in the Act for a dual tax rate for companies carrying out both commercial and non-commercial activities. For these companies, 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 a rate of forty percent.”
This reduction was a direct response to complaints raised by the manufacturing sector on the high rate of tax in the sector and appeals for a decrease in the corporate tax rate in order to improve their competitiveness, both locally and overseas.
Please note that if the correct Corporate Tax rate was used in the letter, the arguments posited by the writer for tax avoidance, transfer pricing and enhancement of the investment climate would be refuted.
Guyana Revenue Authority