In accordance with the Fiscal Enactments (Amendment) Act No. 5 of 2022, Section 8 of the Income Tax Act Chapter 81:01 has been amended, thereby increasing the annual statutory deduction from seven hundred and eighty thousand dollars ($780,000) to nine hundred thousand dollars ($900,000).

The section now provides as follows:

“Notwithstanding the provisions of section 39(1)(c), (d) and (e) any person referred to in subsection (3) whose income from all sources does not exceed nine hundred thousand dollars per annum shall be exempt from taxation on interest earned on savings accounts.”

Section 8 (4) states that, “Where the income from all sources exceed nine hundred and thousand dollars per annum then, notwithstanding section 39(6)(b) that person shall at his option be subject to income tax on his income from all sources including interest on all savings accounts in which case, withholding tax deducted under section 39(1)(c), (d) and (e) shall be granted as a set-off against the tax assessed …”

Therefore, resident individuals who have attained the age of sixty (60) years or are incapacitated by illness or infirmity shall be granted exemption from paying twenty percent (20%) Withholding Tax on interest earned on savings where their total income from all sources does not exceed nine hundred thousand dollars ($900, 000).

Further, where such a person’s income has exceeded nine hundred thousand Guyana dollars (G$900,000) from all sources, and that person decides to submit an Income Tax Return declaring his income from all sources including interest on all savings accounts, withholding tax charged on savings interest by the bank will be granted as a set off against the tax assessed or disclosed in his Income Tax Return submitted to the Guyana Revenue Authority.

Where interest earned on all Saving Account does not exceed ten thousand ($10,000), these persons are not required to apply for an exemption letter from the Guyana Revenue Authority.

For such persons where Interest earned on all savings accounts exceeds ten thousand dollars ($10,000) and who wish to benefit from the withholding tax exemption, the system remains. An application must be made to the Taxpayer Services Division and submit their original updated Bank Books or Statements for the preceding year and their Identification Card or passport for all individuals on the Account or submit such information electronically to compliance@gra.gov.gy for processing. Thereafter, the exemption letter can be uplifted from the Taxpayer Services Division with the appropriate Identification.

This measure takes effect from January 1, 2022.

By Order of

Mr. Godfrey Statia
Commissioner General
Guyana Revenue Authority