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INVESTMENT INCENTIVES
[ Investment] [ General Incentives] [ Agri-business] [ Manufacturing] [ Tourism]
[ Forestry] [ Mining] [ Housing] [ Aviation] [ Informatics] [ Making Contact]
Investment
The Government is looking for foreign investment that will:
Strengthen the existing infrastructure in the various sectors;
Decrease foreign exchange expenditure on imports;
Develop the country’s natural resources in an environmentally sustainable
manner;
Promote the development and transfer of technology
Promote employment growth and development through the strategic location of
economic activities.
There are, generally, no restrictions on ownership of any enterprise or asset. A
foreign investor may invest alone or in partnership with other foreign or local
investors.
The Government of Guyana has been reviewing its incentive regime with a view to
making it more competitive in an effort to promote foreign investment.
In addition to the incentives listed below the Guyana Office for Investment, a
quasi-governmental institution, charged with responsibility for the promotion of
local and foreign investment in Guyana, may make recommendations to the Ministry
of Finance for additional incentives for an investor.
It must be noted that all exemptions are required to be approved prior to
importation.
General incentives:
Tax holidays may be granted to companies carrying on pioneering activities for
a period of up to ten years.
There is a rate of 0% Consumption tax and Customs duty on most items of plant,
machinery and equipment.
There is a rate of 0% Consumption tax and Customs duty on raw materials for
registered companies.
Manufacturers and producers have access to preferential markets through
CARICOM, Lome IV, Caribbean Basin Initiative (CBI) and Caribcan.
Guyana party to double taxation treaties with the United Kingdom of Great
Britain and Northern Ireland, Canada and the Caribbean Community.
Tax legislation allows unlimited loss carry-overs from previous years.
Tax legislation enables accelerated depreciation on plant and equipment.
An export allowance for non-traditional exports to countries outside of the
Caribbean Community are granted as a percentage of export profits and vary from
25% to a maximum of 75%.
Agri-business:
Waivers of duty and consumption tax on certain:
machinery and equipment for land preparation and cultivation, for example
combine harvesters, bulldozers and graders;
agro-processing equipment- e.g. rice mills, driers, shellers and grain
cleaners.
Duty free importation on a range of agro-chemicals.
Allowances for expenditure incurred in development and cultivation.
Manufacturing:
0% duty and consumption tax on:
process machinery and equipment including packaging equipment; and
most raw materials for companies registered under the Consumption Tax Act.
Exemption from duty and consumption tax on:
vehicles imported exclusively for use in the enterprise; and
packaging materials for manufacturers registered under the Consumption Tax
Act.
Waiver of 30% consumption tax on power generators.
Tourism:
Companies are eligible for a package on incentives once every five years. This
includes duty and consumption tax waivers on basic furnishing, plant equipment
and building materials.
Items eligible for concession include:
Television and video recorders
Microwave ovens
Refrigerators and freezers
Gas and electric stoves
Dishwashers
Washing machines and dryers
Air conditioners
Beds
Ceiling fans
Toilet equipment
Bath tubs and fittings
Solar and electrical water heating systems
Elevators
Ice makers
Building materials
Additional items are eligible for concession in respect of investment in
interior locations and include:
Transportation
Electrical generators
Communication equipment
Boats, Engines and life jackets
Chemical portable toilets
Water bikes
Camping equipment
Concessions are limited to 25% of the value of the investment and items
manufactured and available in Guyana do not qualify for exemption.
Eligible entities include:
Existing guest houses and hotels with no less than 15 rooms
Existing resorts located in the interior
New investment for hotels or guest houses with no less than 15 rooms
New resorts to be located in the interior
Tour operators
Approved tourist facilities
Fisheries:
Exemption from import duty on:
trawlers and fishing vessels;
a range of fishing equipment.
Exemption from duty and consumption tax on:
fish and seafood processing equipment;
blast freezers and other refrigeration equipment used in fish and seafood
processing;
packaging material;
refrigerated vehicles
Waiver of 30% consumption tax on power generators
Forestry:
Exemption from duty and consumption tax on:
sawmilling equipment;
equipment used in logging and land development- excavators, compactors,
graders;
wood working equipment- lathes, industrial saws, drill press, industrial
planing machines, routers, finishing and belt sanders;
outboard engines up to 75 Hp- over 75 Hp 5% duty
Waiver of 30% consumption tax on power generators
Mining:
Exemption from duty and consumption tax on:
mining equipment- dredges, rock drilling or earth boring tools, machines for
washing, crushing and grinding rocks, machinery for sorting, screening,
separating and washing earth, feeding and conveying, mercury retorts and
furnaces, diving suits, face masks, diamond recovery sieves;
equipment for land clearing;
outboard engines up to 75Hp; over 75Hp- %5 duty
Preferential consumption tax rate of 10% on aviation fuel
Housing:
Duty and Tax exemptions on selected items of building materials including
lumber, clay bricks and concrete blocks.
Aviation:
Preferential consumption tax rate of 10%
Informatics:
A waiver of duty and consumption tax on machinery and equipment
Tax holidays under the Income Tax (In Aid of Industry) Act
Making contact:
Disclaimer: The information contained in this website is not intended to
replace the advice of an attorney-at-law. For further information or legal
advice we invite you to contact our office.
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