In This Guide
Quick Links
- GRA Withholding Tax Page Official GRA information on withholding tax obligations, rates, and compliance requirements.
- GRA eServices Portal File withholding tax returns online, make payments, and manage your GRA account.
- GRA Forms & Downloads Download withholding tax return forms and related documents.
What Is Withholding Tax?
Withholding tax is a tax deducted at source from certain payments before the money reaches the recipient. Instead of the recipient paying the tax later, the person or business making the payment withholds a specified percentage and remits it directly to the Guyana Revenue Authority (GRA) on behalf of the recipient.
In Guyana, withholding tax applies to various types of payments, including payments to contractors, dividends, interest, royalties, and rent paid to non-residents. The system ensures that the government collects tax revenue at the time of each transaction rather than relying solely on annual tax returns.
Key Concept
Withholding tax is not an additional tax — it is a prepayment of income tax. The amount withheld is credited against the recipient's overall tax liability when they file their annual income tax return. If more was withheld than owed, the recipient can claim a refund.
Who Must Withhold
The obligation to withhold tax falls on the payer — the person or business making the payment. You are required to withhold tax if you are:
Withholding Obligations
Withholding Tax Rates
The following table summarises the withholding tax rates currently in effect in Guyana:
| Payment Type | Resident Rate | Non-Resident Rate |
|---|---|---|
| Contractor Payments (labour/equipment, over $500K) | 0% (Repealed Jan 2022) | 10% |
| Dividends | N/A | 20% |
| Interest | N/A | 20% |
| Royalties | N/A | 20% |
| Management Fees (to non-residents) | N/A | 20% |
Double Taxation Treaties
Guyana has double taxation treaties (DTTs) with certain countries. Under these treaties, the withholding tax rate on dividends, interest, and royalties may be reduced (e.g., to 15%, 10%, or even 0%). If the recipient is a resident of a treaty country, check the applicable treaty for reduced rates. The payer must obtain a valid certificate of residence from the recipient to apply the reduced rate.
Contractor Withholding
Resident Contractors
Important Change
The 2% withholding tax on payments to resident contractors (for supply of labour or hiring of equipment exceeding GYD $500,000) was repealed effective January 1, 2022 under the Fiscal Enactments (Amendment) Act No. 5 of 2022. Payments to resident contractors are no longer subject to withholding tax. Contractors are still required to file their own income tax returns.
Non-Resident Contractors (10%)
Payments to non-resident companies or individuals (contractors and subcontractors) for work done in Guyana are subject to withholding tax at the rate of 10% on the gross amount. This applies regardless of the payment amount — there is no threshold for non-resident contractor withholding.
Employer Responsibility
If you are required to withhold tax but fail to do so, you become personally liable for the amount that should have been withheld. The GRA may also impose penalties and interest on the unpaid amounts. Always verify your withholding obligations before making payments.
Non-Resident Withholding
Payments to non-residents of Guyana attract withholding tax at 20% on the following types of income:
- Dividends: 20% withholding on dividends paid by Guyana-resident companies to non-resident shareholders
- Interest: 20% withholding on interest payments from Guyana sources to non-residents
- Royalties: 20% withholding on royalty payments to non-residents for the use of intellectual property, patents, trademarks, etc.
- Management and Technical Fees: 20% withholding on fees paid to non-resident entities for management or technical services
Treaty Countries
If the non-resident recipient is from a country that has a double taxation treaty with Guyana, the withholding rate may be reduced. The recipient must provide a valid Tax Residency Certificate from their home country's tax authority to claim the reduced rate. Without this certificate, the full 20% rate applies.
How to Remit
After withholding the tax, you must remit it to the GRA within the prescribed time frame. Here is how:
- Deduct the Tax: Withhold the correct percentage from the payment at the time it is made.
- Complete the Return Form: Fill out the prescribed withholding tax return form, available from the GRA Forms page.
- Remit Within 30 Days: The withheld tax must be paid to the GRA within 30 days of the end of the month in which the payment was made.
- Submit Online or In Person: You can remit online through the GRA eServices portal or in person at any GRA office.
- Issue a Certificate: Provide the payee with a withholding tax certificate showing the amount withheld. The payee will use this to claim credit against their own tax liability.
Filing Requirements
Businesses and individuals who withhold tax must maintain proper records and comply with the following filing requirements:
Record-Keeping Requirements
Need Help?
Contact the GRA Tax Advisory Services for assistance with withholding tax obligations. Call 227-4921 or visit the GRA Head Office at 200–201 Camp Street, Georgetown.
Frequently Asked Questions
What is withholding tax in Guyana?
Withholding tax is a tax deducted at source from certain payments before the money reaches the recipient. The person or business making the payment withholds a percentage and remits it directly to the GRA on behalf of the recipient.
What is the withholding tax rate for contractors?
The 2% withholding on resident contractors was repealed in January 2022. Payments to resident contractors no longer require withholding. For non-resident contractors, the rate is 10% on gross payments for work done in Guyana.
What is the withholding tax on dividends paid to non-residents?
A 20% withholding tax applies to dividends paid by Guyana-resident entities to non-residents. This rate may be reduced under a double taxation treaty between Guyana and the non-resident's country of residence.
How do I remit withholding tax to the GRA?
You must remit the withheld tax to the GRA within 30 days of the end of the month in which the payment was made. You can remit online through the GRA eServices portal at eservices.gra.gov.gy, or in person at any GRA office.
Do I need a TIN to withhold tax?
Yes. Both the payer and the payee should have a valid Taxpayer Identification Number (TIN) issued by the GRA. If you do not have a TIN, you can apply at any GRA office or online.
What happens if I fail to withhold tax as required?
If you are required to withhold tax but fail to do so, you become personally liable for the amount that should have been withheld. The GRA may also impose penalties and interest on the unpaid amounts.
Is withholding tax on interest the same for residents and non-residents?
No. Interest paid to non-residents is subject to a 20% withholding tax. Interest paid to residents is generally not subject to withholding tax at source, but it must still be declared as income and taxed under the Income Tax Act.
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Government Services HubLast updated: April 3, 2026. Information in this guide is based on the Income Tax Act, Corporation Tax Act, and official GRA publications. Tax laws may change — always verify current rates and rules at gra.gov.gy or consult a qualified tax professional.