Dear Editor,
The Guyana Revenue Authority (GRA) would like to respond to a letter published in the October 11, 2017 edition of Stabroek News captioned ‘There should be a phased reduction in Corporation Tax rates’ which was submitted by Mr Sase Singh, and to correct several inaccuracies mentioned in the letter on the rate of Corporation Tax.
The GRA wishes to remind the writer and the general public that Section 10 of the Corporation Tax Act was amended in 2017 to reduce the Corporation Tax rate for non-commercial companies from 30% to 27.5%. Additionally, provisions were also made in the Act for a dual tax rate for companies carrying out both commercial and non-commercial activities. For these companies, the non-commercial activity of the company shall be taxed at the rate of twenty-seven and one half percent and the commercial activity of the company shall be taxed at a rate of forty percent.”
This reduction was a direct response to complaints raised by the manufacturing sector on the high rate of tax in the sector, and appeals for a decrease in the corporate tax rate in order to improve their competitiveness, both locally and overseas.
Please note that if the correct corporate tax rate was used in the letter, the arguments posited by the writer for tax avoidance, transfer pricing and enhancement of the investment climate would be refuted.
Members of the public are urged to visit the GRA’s website at www.gra.gov.gy for up-to-date information on rates of taxes and recent tax reforms. Further contact can be made with our Tax Advisory Services Section on +592 227 6060 Ext. 1200-1204 or you can send us a message at gravat@gra.gov.gy or www.facebook.com/guyanarevenue.
Yours faithfully,
Melissa Baird
Public Relations
Guyana Revenue Authority
