Resident companies are liable to tax on their worldwide income. Non-resident companies that carry on a trade or business in Guyana are subject to tax on the income that is derived from Guyana.
The current rates of corporate tax are as follows:
|Type of company
||Corporate tax rate (%)
|Commercial companies *
|Other companies (non-commercial)
|Both non-commercial and commercial
* A commercial company means any company carrying out commercial activities solely. Where dual activities are carried out by a company, the portion of the activity relative to commercial activities shall be so deemed. ‘Commercial activity’ means an activity carried out by a company trading in goods not manufactured by it and includes an activity of a commission agency, a telecommunications company, a body corporate licensed to carry on banking business in Guyana, and an insurance company carrying on in Guyana insurance business, other than long-term insurance, as defined in section 2 of the Insurance Act.
Minimum Corporation Tax (MCT)
Commercial companies (other than insurance companies) are subject to tax at the rate of 40% of chargeable profits or 2% MCT of turnover, whichever is higher. Any excess MCT over tax at the normal rate is carried forward for setoff against corporate tax payable in subsequent years, provided that in no year is the tax payable reduced to less than 2% of turnover.
Local income taxes
There are no additional income taxes imposed on companies.