GUYANA-Government explains new income tax measures.

GEORGETOWN, Guyana, CMC—Senior Minister in the Office of the President with Responsibility for Finance and the Public Service, Dr. Ashni K. Singh, says that since presenting the GUY$1.38 trillion (One Guyana dollar = US$0.004 cents) national budget to Parliament last Friday, he has received “several requests” seeking further explanation regarding the personal income tax measures.

In a statement, Singh said that before the Irfaan Ali government came to office in 2020, there had been two rates of income tax, namely, 28 and 40 percent, with the threshold being set at GUY$60,000 monthly, or one-third of the salary, whichever is greater.

Singh said that as a result, at that time, the first GUY$60,000 or greater of the monthly salary would be taxed at zero percent, the next GUY$120,000 of the monthly salary, twice the amount of the threshold, would be taxed at 28 percent, and the remainder of the monthly salary above that would be taxed at 40 percent”.

However, in his statement, he said the government’s intention is to make adjustments in 2025 to the threshold and rates of personal income tax payable.

He said it would increase the threshold to GUY$130,000 monthly and lower the tax rates of 28 percent and 40 percent to 25 percent and 35 percent, respectively.

Singh said as a result of these proposed changes, the first GUY$130,000 of the monthly salary, or one-third of the wages if that is greater, will now be taxed at zero percent, would now be taxed at 25 percent, with the remainder above that would now be taxed at 35 percent.

“Additionally, of course, the allowance of GUY$10,000 per child monthly, and the allowances of up to GUY$50,000 monthly for overtime and up to GUY$50,000 monthly for income earned from a second job, will also be taxed at zero percent,” Singh said.

He said that the tabled Estimates of Revenue and Expenditure for 2025 already incorporate the above adjustments, even though this full elaboration was not provided in the budget speech.

“These changes will be reflected in proposed amendments to the Income Tax Act to give legal effect from year of income 2025,” Singh added.