The standard corporate tax rate is 25% (reduced from 27.5% effective 1 January 2019) for non-commercial company and for small businesses (i.e., businesses which are engaged in manufacturing and construction services and registered with the Small Business Bureau). However, a number of other rates apply as follows:
- Commercial companies are taxed at the rate of 40%. Commercial companies include entities which derive 75% of their income from trading of goods not manufactured by them and includes companies engaged in the business of commission agency, telecommunications, banking and insurance (except long-term insurance business);
- If companies are engaged in both commercial and non-commercial activities, then the non-commercial activity of the company is taxed at the rate of 25% (reduced from 27.5% effective 1 January 2019) and the commercial activity of the company is taxed at the rate of 40%;
- Income of telephone companies is subject to tax at 45%;
- Short term capital gains from the disposal of assets within 12 months of acquisition are taxed at the standard corporate tax rate, whereas other capital gains are subject to capital gains tax at a reduced rate of 20%. However, certain exemptions apply (see Sec.5.1.); and
- Companies eligible for tax incentives are subject to reduced corporate tax (see Sec. 10. below).
Taxpayers engaged in the business of gold mining are charged to a final withholding tax at the rate of 2.5% on the gross total income (2% if the price per ounce is not more than USD 1,100). Until 31 May 2022, the final withholding tax rate for gold mining ranged from 2% to 3.5% depending on the price per ounce. For diamonds, a final withholding tax at the rate of 2% applies on the valuation made by the Central Authority. The deadline for filing returns and paying the final tax on gold and diamonds is by the 14th day of the following month (end of each calendar month until 31 May 2022).
Companies engaged in the extraction of mineral resources are subject to tax for the use of subsoil, in addition to corporate income tax. Under the Guyana Mining Law, entities holding a mining license or permit are required to pay mineral extraction royalties at rates fixed by/ computed in accordance with the provisions of the mining license or as per the rate prescribed under the regulations.
Commercial companies (other than insurance companies) are subject to a minimum tax at the rate of 2% of turnover. Any excess of minimum tax over the final corporate tax liability is carried forward to be set off against the corporate tax payable in subsequent years.