– General incentives
Across the board incentives for investors.
• Tax Holidays – Pioneering Projects (new economic activity), etc.
• Incentives when the activity creates new employment in the following regions:
• Region 1: Barima / Waini
• Region 7: Cuyuni / Mazaruni
• Region 8: Potaro / Siparuni
• Region 9: Upper Takatu / Upper Essequibo
• Region 10: Upper Demerara / Upper Berbice
Initial Allowance equal to 1/10th of capital expenditure allowed for construction
on hotel buildings in Regions 1, 7, 8, 9 and 10.
Tax credit equal to 75% of income and corporate taxes payable on profits from
tourism activities, for investments in Regions 1, 7, 8, 9 and 10.
• Zero-rated Customs Duties and VAT on:
• Most plant, machinery, and equipment
• Raw materials and packaging materials used in the production of goods by manufacturers licensed by the GRA
• Unlimited carry-over of losses from previous years
• Accelerated depreciation on plant and equipment
• Full and unrestricted repatriation of capital, profit, and dividends
• Benefits of double taxation treaties with the UK, Canada, Kuwait and CARICOM countries
– Sector Specific Incentives (provided in addition to general incentives)
– Agri-business
Waivers of Custom Duties and VAT on:
• A wide range of machinery and equipment for land preparation
and cultivation, including agricultural hand tools and spare parts for
agricultural machinery
• Vehicles imported in accordance with the published guidelines for
farming enterprises
• A wide range of agro-processing equipment
• Duty-free importation on a wide range of agro-chemicals (e.g.,
insecticides, herbicides, fungicides, etc.)
• Allowances for expenditures incurred for development and cultivation
purposes
– Construction
• For Businesses registered with the Small Business Bureau, a reduced
rate of income and corporate tax rates of 25% on taxable profits
• Exemption from Customs Duty on limestone used in the agriculture
sector
– Fisheries
• Exemption from import duties on trawlers, fishing vessels, spare parts
for fishing boats and trawlers, a wide range of fishing equipment
• Exemption from custom duties and VAT on fish/seafood processing
equipment, packaging material and other inputs for processing
– Manufacturing
Custom Duties and Zero-rated VAT on:
• A wide range of processing machinery and equipment, including
packaging equipment, raw materials for manufacturing companies
registered under the VAT Act
• Exemption on a wide range of auxiliary plant equipment such as boilers,
forklifts, scales for continuous weighing, continuous-action conveyors,
etc.
• Exemption from import duty and VAT on packaging materials, for the
manufacturing of exempt items, by manufacturers registered under the
VAT Act
• For businesses registered with the Small Business Bureau, a reduced
rate of income and corporate tax rates of 25% on taxable profits
• Export allowance extended to exporters of non-traditional products
who are paid in a recognized tradable currency.
– Tourism
Eligible for Duty and VAT Exemptions on Capital Items
• New guesthouses/hotels/lodges with not less than thirty rooms outside
of interior locations
• Expansion of hotels and resorts with no less than eight rooms in interior
locations and no less than thirty rooms outside of interior locations
• Facilities must be approved by the Guyana Tourism Authority
Items eligible for concessions
For interior locations, the following items, in addition to the above, may be
accorded concessions:
• Energy system generators
• Communication equipment – radio sets
• Boats, engines, life jackets, Water bikes (recreational vehicles)
and camping equipment
• Portable chemical toilets
• Construction materials, furnishing, fixtures, appliances and vehicles necessary for operations
Vehicles
Incentives for Incorporated Companies
The following Excise Tax exemptions and reductions apply to motor vehicles
that are used exclusively overland in the Tourism Industry in Regions 1, 7, 8,
9 and 10.
• Vehicles less than four years old with a cylinder capacity (cc) exceeding
2,000 cc shall be exempt from the payment of Excise Tax;
• Vehicles four years old and over exceeding 2,000 cc but not exceeding
3,000 cc: Excise Tax shall be reduced using the following formula:
((CIF+US$13,500) *35%)+ US$13,500.
• Vehicles four years old exceeding 3,000 cc: Excise Tax shall be reduced
using the following formula – ((CIF+US$14,500 *35%)+US$14,500).
• These motor vehicles must be used EXCLUSIVELY by incorporated entities
in the tourism industry that have been in existence and operating for at
least five years to transport people within Regions 1, 7, 8, 9 and 10.
Other Incentives within the Tourism Sector
Exempt from the payment of import duties and excise taxes, motor buses with
12 or more seats, not exceeding four years old, purchased and used exclusively
for the transportation of tourists anywhere in Guyana, and registered and
licensed as a tourism operator by the Guyana Tourism Authority (GTA).
• Vehicles eligible for concessions must have twelve seats and over for
tourist accommodation facilities.
• For incorporated entities operating in Regions 1, 7, 8, 9 and 10 for at
least five years, reduction in the rates of Excise Tax on the importation
of overland transportation used for tourism purposes is applicable to
vehicles between 2,000 cc and 4,000 cc.
• For vehicles 2,000 cc to under 3,000 cc and which are less than four
years, the Excise Tax would be removed. For vehicles over 3,000 cc to
4,000 cc and which are less than four years, the Excise Tax would be
removed.
• Free vehicle licences granted to motor buses and motor vehicles that
operate in Regions 1, 7, 8 and 9.
• VAT will be removed on vehicles that are less than four years, which are
equipped to transport more than 21 persons.
• The Excise Tax flat rate of US$6,900 was removed and replaced with a
VAT of 14 %, on vehicles four years and older that carry between 22 and
29 passengers.
• Duty-Free Concessions are limited to 50% of the value of investment for
New Projects.
• Duty-Free Concessions are limited to 25% of the value of
Investment for Expansion Projects.
• Exemption of VAT and waiver of 5% import duty for boats (not exceeding
7.08 cubic metres (250 cubic feet)) used in rural and riverain areas
designed for the transport of goods and persons .
• Exemption of VAT and waiver of 5% Import Duty on aircraft engines and
main component/parts.
– Forestry/Wood Products
• Exemption from custom duties and VAT on machinery and equipment
and vehicles used in logging, land development and sawmilling.
– Information & Communication Technology
• Exemption from custom duties on a wide range of ICT equipment
including computers, hardware accessories, integrated circuits, micro
assemblies and apparatus.
• Zero rates of VAT on computers, accessories, routers, switches and hubs
for networking, computers.
• Exemptions from duties and taxes for items covered under an Investment
Agreement.
• Tax holiday for some projects (with positive net economic benefit).
• Exemption of VAT and waiver of 5% import duty for boats (not exceeding
7.08 cubic metres (250 cubic feet)) used in rural and riverain areas
designed for the transport of goods and persons .
• Exemption of VAT and waiver of 5% Import Duty on aircraft engines and
main component/parts.
– Energy
• Exemptions from duties and taxes on machinery, equipment, tools,
spares and supplies and motor vehicles for industrial use.
• Investments (except wind and solar energy) may benefit from
exemptions from property, corporate, withholding and capital gains
taxes for a period of five years. These are renewable depending on
the type of new employment created.
• Investments in wind and solar energy may benefit from exemptions
from property, corporate, withholding and capital gains taxes for a
period of two years.
• Income from the provision of wind and solar energy may be exempted
from corporation tax for a period not exceeding two years.
• Tax exemptions are available within the energy sector for new
economic activities of a developmental and risk-bearing nature which
create new employment in areas such as:
• Write off of capital expense within two years
• Waiver of import duties and VAT on new equipment
– Services
• An allowance of 2% for wear and tear on buildings used for services
and warehousing purposes.
• Exemption of VAT and waiver of Import Duty of 5 percent on water
treatment and production plants.
• Exemption from VAT, and waiver of 5% duty on aircraft engines and
main components/parts.
– FOR MORE INFORMATION PLEASE VISIT THE FOLLOWING WEBSITES
(A) Ministry of Foreign Trade & International Cooperation: www.moftic.gov.gy
(B) Guyana Office for Investment (GO-INVEST): www.goinvest.gov.gy
(C) Ministry of Tourism, Industry & Commerce: www.mintic.gov.gy
(D) Ministry of Natural Resources and the Environment: www.nre.gov.gy
(E) Guyana Sugar Corporation (GuySuCo): www.guysuco.com
(F) Ministry of Agriculture: www.agriculture.gov.gy
(G) Guyana Rice Development Board: www.grdb.gy
(H) Guyana Forestry Commission: www.forestry.gov.gy
(I) New Guyana Marketing Corporation (Non-Traditional Exports): www.newgmc.com
(J) Ministry of Finance: www.finance.gov.gy
GO-INVEST
In light of the urgency for expanding and diversifying investment opportunities and exports, the Guyana Office for Investment (GO-INVEST) was restructured. The new agency is aggressively seeking out investors and promoting Guyana as a place with which to do business. The processing of applications for concessions and other government support is expedited.
GO-INVEST is the primary contact for investors and exporters. It liaises, on their behalf, with government ministries and other agencies. Investors are given a comprehensive summary of the steps required to commence operations and to grow their business, including the documents that have to be completed and the estimated time for their completion by the relevant agencies.
An INVESTOR ROADMAP which is available in three forms – a Manual, Fact Sheets and on the GO-INVEST Website at www.goinvest.gov.gy – outlines in five sections the following:
· Business registration;
· The process to lease or buy government and private lands;
· Permits for construction, fire safety and environmental protection;
· Applications for water, electricity and telephones;
· Laws and regulations on accounting and reporting procedures to the Guyana Revenue Authority;
· Laws and regulations on work permits as well as the hiring and severance of employees.
The last section provides a detailed list of the incentives and concessions that are applied across-the-board and a list on incentive programs for specific sectors.
GUYANA’S MAIN EXPORT COMMODITIES
Gold
Sugar
Sea foods, shrimp/fish products
Rice
Forestry (Timber/plywood etc)
Bauxite
Diamonds
Rum
Molasses
Pharmaceuticals
Gold Jewelry
Leather Products
Live Animals/Birds (Macaws & Parrots)
Non-Traditional – Agricultural Exports
Heart of Palm
Coconut
Crude oil
Copria
Plantain
Cassava
Yams
Breadfruit
Mango
Pineapple
Watermelon
Lime
Pepper
Pumpkin
Crafts
Go-Invest Booklet 2019