Under the Corporation Tax Act (Imposition of Corporation tax), corporation tax is payable upon the profits of any company accruing in or derived from Guyana or elsewhere, and whether received in Guyana or not in respect of:
any trade or business for whatever period of time the trade or business may have been carried on
any profession or vocation or management charges or charges for the provision of personal services and technical and managerial skills;
Capital gains accruing on the disposal of property within twelve months of its acquisition;
interests, discounts, annuities or other accrued or periodic payment received for the use of capital;
Premiums, commissions and fees.
Rentals and royalties paid for the use or the right to use: (1) copyrights, artistic or scientific work, patents, designs, plans, secret processes or formulae, trade marks, motion picture films, films or tapes for radio and television broadcasting or other like properties or rights, or (ii) information concerning industrial, commercial or scientific knowledge, experience or skill; and
Dividends and other income from non-resident companies and other persons and entities including partnerships.
Rate of tax
The rates of corporation tax are as follows
A commercial company the rate of tax is 40%
And for non commercial companies the rate is now 30%.
A commercial company is one that derives at least seventy- five percent (75%) of its gross income from goods not manufactured by it and includes any commission agency, any telecommunication company, any body corporate licenced or otherwise authorised by law to carry on banking business in Guyana, and any company carrying on in Guyana insurance business other than long-term insurance business.
Minimum Corporation Tax
A Minimum Corporation Tax (MCT) of two percent (2%) of turnover is payable by commercial companies.
Companies may carry forward loss for an unlimited number of years, but such losses may not reduce the taxable income in any year by more than fifty percent (50%) or in the case of commercial companies the tax payable to less than two percent (2%) of turnover.
Payment of Corporation tax
Corporation Tax is payable in advance quarterly installments on the preceding year's tax liability. Advance tax payments are due on March 15, June 15, September 15 and December 15 of the calendar year prior to the tax year.