Guyana: Tax measures proposed in 2022 budget

Withholding tax, individual income tax, VAT, and excise tax proposals

Withholding tax, individual income tax, VAT, and excise tax proposals

Guyana’s 2022 national budget—presented in late January 2022—includes tax-related proposals.

Withholding tax

  • Removal of 20% withholding tax currently charged on interest income earned on bank savings for individuals not exceeding GYD $10,000 per annum (approximately U.S. $48)
  • Removal of 2% withholding tax on payments made to Guyana resident contractors

Individual (personal) income tax

  • Increase in low-income loans obtained through commercial banks under the low-income housing programme to GYD $15 million (from GYD $12 million)
  • Increase in income tax threshold, which qualifies for relief, to GYD $75,000 per month (from GYD $65,000)
  • Up to 10% of income or GY $30,000 monthly, whichever is the lower amount, of insurance premiums paid for life and medical insurance to be deductible against chargeable income

Value added tax (VAT) and excise tax

  • Removal of 10% excise tax and 14% VAT on the importation of motor trucks less than four years old, of any tonnage utilised for transport of goods
  • Removal of 14% VAT on the importation of new haulers for pulling containers or similar vehicles
  • Removal of 10% excise tax on the importation of new double-cab pickups below 2000 cc
  • Reduction of excise tax to 75% (from 110%) for new double-cab pickups between 2000 and 3000 cc
  • Removal of 10% excise tax on the importation of new single cab pickups below 3000 cc
  • Removal of 14% VAT on cranes, safety equipment, and oil spill response equipment
  • Reduction of the excise tax rate on gasoline and diesel to 10% (from 20%)


Read a 2022 report [PDF 326 KB] prepared by the KPMG member firm in Trinidad and Tobago

 

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