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10. INCENTIVES AND SPECIAL REGIMES

To encourage investments, promote the development of technology, increase employment opportunities in Guyana, various incentives are available.

General Incentives

  • Customs duty exemption on raw materials and packaging materials used in the production of goods by manufacturers and small businesses (see Sec. 8.1.1.);
  • Exemption from customs duty and zero VAT rate on raw materials and packaging for manufacturers who export at least 50% or more of their products;
  • Customs duty exemption on spares, packaging material, fishing vessels and equipment etc. to industries engaged in the fishing business
  • Exemption from excise tax on items approved under an Investment Agreement between the Government and the business;
  • Free repatriation of capital, profits, and dividends;
  • Export allowances based on a percentage of export sales outside the markets of CARICOM member states. The amount of export profit eligible for deduction from taxable income is based on the percentage of export sales to total sales. The maximum amount of deduction allowed is 75% of profits from export sales. Effective 1 January 2019, the scope of the export allowance has been extended to cover exporters of non-traditional productsto markets outside CARICOM where payment is made in a recognisable foreign currency;
  • Mining Industry:
    • Customs duty exemption on mining equipment;
    • A single rate of depreciation of 20% on assets depreciated using straight-line method; and
    • Carry forward of losses for an indefinite period for gold and diamond mining industry;
  • Companies engaged in the tourism industry are eligible for the following incentives subject to certain conditions:
    • Effective 1 January 2019, the provision of tourism activities in certain specific regions is eligible for a tax credit equal to 75% of corporate taxesfor the first 2 years of establishment;
    • New/eco-tourist hotels – customs duty exemption and zero VAT rate on equipment, furnishings, building materials and appliances up to 50% of total investment; and
    • Expansion of existing hotels eligible for fiscal concession up to 25% of the value of additional investments (subject to certain exceptions);
  • Companies engaged in the Aviation industry are eligible for reduced consumption tax of 10%;
  • Companies engaged in the information and communication technology sector are eligible for the following incentives, subject to certain conditions:
    • Customs duty expemtion on a wide range of information and communication technologies equipment;and
    • Zero VAT on computers and hardware accessories, routers, switches and hubs for networking computers, toner cartridges and ink cartridges for computer printers;
  • Effective 1 January 2017, income from the provision of wind and solar energy, water treatment and water recycling facilities, waste disposal and recycling facilities for plastic items is eligible for exemption from corporate taxes for a period of 2 years.

Tax Holiday for Pioneer Industries

Pioneer industries are companies engaged in the new economic activity of developmental and risk-bearing businesses such as information and communication technology, non-traditional agricultural development, infrastructural development, bio-technology, etc.

Conditions for Incentives:

  • Creation of new employment in specified regions/ areas such as Barimi/Waini, Cuyuni/Mazaruni, Potaro/Siparuni, Upper Takatu/Upper Essiquibo, Upper Demerara/Upper Berbice;
  • Creation of employment in specified business areas/ industries such as petroleum exploration, value-added wood processing, information technology, infrastructure development, etc. or such other areas as the Minister may specify.

Following tax holiday/ incentives are available to Pioneer Industries:

  • Exemption from corporate tax (‘CIT’) for a period of 5 years to 10 years;
  • Exemption from CIT for a period of more than 10 years in case of a company engaged in the business of Infrastructural development including the production of electricity using renewable sources of energy; and
  • Carry forward of losses for an indefinite period.