Guyana

Various tax incentives are available, depending on the nature of the industry that the companies are engaged in, including the following:

• Customs duty and VAT exemption on most plant, machinery, and equipment.
• Customs duty and VAT exemption on raw materials and packaging materials used in the production of goods by manufacturers and small businesses.
• Unlimited carryover of losses from previous years.
• Accelerated depreciation on plant and equipment.
• Full and unrestricted repatriation of capital, profits, and dividends.
• Tax deduction for scientific research expenses.
• Initial and annual allowances.
• Tax holidays.

Tax holidays are granted in respect of pioneering activities, that is, to companies whose trade or business are wholly of a developmental and risk-bearing nature and likely to be instrumental to the development of the resources of and beneficial to Guyana.

This does not include trade or business carried on by a gold or diamond mining company or a company carrying on petroleum operations.

Tax holidays are granted for a period of up to ten years. In exceptional circumstances, the period may extend beyond ten years.

Foreign tax credit

Foreign tax relief is available under DTTs with Canada, the United Kingdom, and Caribbean Common Market (CARICOM) countries.

Unilateral relief is also available for foreign taxes paid in non-treaty countries with tax systems and legislation similar to those in Guyana. For British Commonwealth countries, the relief is 50% of the relief that would be available if the foreign country were a treaty country. For other countries, the relief is 25% of such available relief. The available relief is the lower of the tax rate in Guyana and the tax rate in the other country.