The Guyana Revenue Authority (GRA) has temporarily removed the Value Added Tax (VAT) from Water and Electricity and extended the deadline for the filing of tax returns to June 30, 2020.
In a statement issued yesterday the GRA noted that as part of ongoing national efforts to support businesses and individuals who have been socially and economically disadvantaged by the novel coronavirus (COVID-19) pandemic the Government of Guyana has approved a number of additional tax measures.
These measures include the removal of VAT on water and electricity for three months, April 1 to June 30, 2020 and the extension of the April 30 deadline for the filing of tax returns to June 30, 2020.
“However, estimated remaining taxes using ‘management financial statements’, for the Year of Income 2019 must be paid by April 30,” the statement explained.
Other measures announced are the removal of VAT on Domestic Air Travel with effect from April 8 to June 30 and the expedited processing of VAT refunds for businesses and Pay As You Earn (PAYE) refunds for employees.
These four measures have been approved as an addition to those which were announced two weeks ago.
Those measures are the waiver of VAT and duties on COVID-19 medical supplies and lab testing kits, the granting of Tax deductions for all donations made by local businesses to staff and health institutions for the treatment of the virus, the deferral of the payment of advance corporate and individual advance taxes for the Year of Assessment 2021 (Year of Income 2020) and PAYE for affected businesses until June 30, 2020.
Examples of affected businesses include airline and tourism and associated industries, like hotels and transportation, who continue to employ their employees, or send their employees on extended vacation leave.
The payment of advance taxes will be deferred without penalty and interest and affected businesses will pay advance taxes on the current year basis, the authority reiterated.
GRA explained that despite having employees working from home, the authority continues to provide essential services to taxpayers and collect vital revenue necessary for the provision of services.
It is also fast tracking the provision of its services electronically including the submission of documents and payments and continuing to provide the essential services needed to clear all items, both by air and sea and also to expedite exports.
Those employees who are still working on site have for the last three weeks been rotating on a weekly basis while at close of work every Friday, the entire building is fumigated so that persons returning to work on Monday come to a clean environment.
