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5.1. Tax Base for Resident Entities

Resident entities are subject to corporate tax on their worldwide income derived from within and outside Guyana.

Dividend income received by a resident company from another resident company is exempt from corporate income tax. Dividends received from non-resident companies are taxed as ordinary income.

Capital gains on the disposal of assets within a period of 12 months from the date of acquisition are classified as short-term gains and are taxed as ordinary income at the standard corporate tax rate. Capital gains on the disposal of chargeable assets held for a period exceeding 12 months are classified as long-term gains and are charged to corporate income tax at a reduced rate (see Sec. 8.1.).

Following capital gains are exempted:

  • Capital gains not exceeding GYD 500,000 in a year (increased from GYD 1,000 effective from 1 January 2019);
  • Capital gains derived from the sale of investments made in local public companies; and
  • Effective 4 March 2021, capital gains in respect of assets held for more than 25 years. This includes capital gains arising from several sources such as sale, surrender, relinquishment, transfer of rights, redemption, dissolution, liquidation, amalgamation, merger, formation, etc. as specified.