The two per cent withholding tax on contractors’ earnings (individuals/companies) is not applicable to regular day-to-day commercial activities involving the trade in goods and services, the Guyana Revenue Authority (GRA) has said.
Rather it applies to payments to resident businesses, individuals and companies with written “contractual arrangements,” it said in a statement yesterday.
The GRA explained that “Contractors” as defined in Subsection 14 of the Income Tax Act Chapter 81:01, refer to persons “contracting with or employed directly by an owner or an agent of the owner to supply services, goods, materials, equipment, or personnel in the furtherance of the services.”