Income tax is high at 33.33%

November 17, 2011

INDIVIDUAL TAXATION

Nonresidents are taxed on their income from sources in Guyana. Married couples are taxed separately.

INCOME TAX

Income tax is levied at a flat rate of 33.33%.

INCOME TAX

TAXABLE INCOME (US$) TAX RATE
Up to 420,000 (US$2,093) 0%
Over 420,000 (US$2,093) 33.33%
Source: Global Property Guide

RENTAL INCOME
Rental income is taxed at a flat rate of 33.33%. Income-generating expenses are deductible from the gross rent when computing for the taxable income.

For nonresidents earning rental income, a withholding tax of 20% of the gross rent must be withheld by the tenant. The withholding tax is deductible against the final income tax liability.

CAPITAL GAINS TAX

Capital gains tax is levied at a flat rate of 25% but assets and properties held for more than 25 years are exempt from capital gains taxation. Taxable capital gains are computed as the difference between the sales price or market value of the property and acquisition costs.

Capital gains realized from assets and properties disposed after less than one year of ownership are treated as income and taxed at the standard income tax rate of 33.33%.

PROPERTY TAXATION

Wealth Tax

Wealth tax is levied at progressive rates. The tax base is the net property and the income tax value of the assets is used when computing net property.

WEALTH TAX

TAX BASE, GYD (US$) TAX RATE
Up to 7.5 million (US$37,369) 0%
7.5 million - 12.5 million (US$62,282) 0.50%
Over 12.5 million (US$62,282) 0.75%
Source: Global Property Guide

CORPORATE TAXATION

INCOME TAX

Corporate tax rates vary, depending on the classification of the company. Non-commercial companies are taxed at a flat rate of 35% while commercial companies are taxed at flat rate of 45%.

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