Employer Tax Contributions

Tax Type	Rate	Base
PAYE (Income Tax)	28% / 40%	Taxable income
National Insurance Scheme (NIS) - Employer Share	8.4%	Employee's gross salary, up to GYD $280,000 monthly

Filing & Compliance

• Monthly PAYE & NIS: Remit withheld PAYE and NIS contributions by the 15th day of the following month.
• Annual PAYE Returns (Form 2): File by April 30 of the following year, summarizing total remuneration and PAYE deducted.
• Annual NIS Returns: Submit by January 31 of the following year, detailing employee contributions.

In Guyana, employee tax deductions, referred to as Pay As You Earn (PAYE), are calculated based on an employee's gross income and several deductions and allowances.

Tax Threshold and Rates

• Tax Threshold: The monthly income tax threshold is GYD 130,000, meaning earnings up to this amount are not taxed. Annually, this equates to a tax-free income of GYD 1,560,000.
• Tax Bands and Rates: A tiered system is in effect as of January 1, 2025:
  • First Band: Up to GYD 260,000 monthly (GYD 3,120,000 annually) is taxed at 25%.
  • Second Band: Income exceeding GYD 260,000 monthly (GYD 3,120,000 annually) is taxed at 35%.

Allowances and Deductions

• Personal Allowance: An annual personal allowance of GYD 1,200,000 applies. This is factored in when determining taxable income. Taxpayers can claim the higher of the GYD 1,560,000 threshold or 1/3 of their chargeable income.
• Overtime and Second Job Relief: The first GYD 50,000 earned monthly from overtime or a second job is tax-exempt.
• Child Deduction: A monthly deduction of GYD 10,000 per child is available. Only one parent can claim this deduction for each child.
• No employment expense deductions are available against employment income.

National Insurance Scheme (NIS)

• Employee and Employer Contributions: Both employees and employers contribute to the NIS. Specific rates apply based on earnings.
• Earnings Ceiling: Contributions are payable up to a specified monthly and weekly earning limit.

PAYE Procedures and Deadlines

• Employers' Responsibility: Employers are responsible for deducting PAYE from employees' salaries and remitting it to the Guyana Revenue Authority (GRA).
• Remittance Deadline: Taxes withheld must be remitted by the 14th of the month following the payment of the employment income.
• Annual Tax Returns: Employees must file their annual tax returns by April 30th of the following year.

Example

Here’s an simplified example assuming monthly values. This scenario does not represent all possible individual cases and may not include other deductible expenses.

Scenario: An employee earns a monthly salary of GYD 300,000, works overtime earning an additional GYD 60,000 and has one child.

Calculation:

1. Gross Income: GYD 300,000 (salary) + GYD 60,000 (overtime) = GYD 360,000

2. Overtime Relief: The first GYD 50,000 of overtime is tax-free, so GYD 10,000 is taxable overtime.

3. Taxable Income: GYD 300,000 (salary) + GYD 10,000 (taxable overtime) - GYD 10,000 (child deduction) = GYD 300,000

4. Tax Calculation: In this scenario and for the purpose of demonstrating tax bands, let’s assume that 1/3 of chargeable income is higher than GYD 130,000 threshold. Hence, the initial GYD 100,000 will be tax-free based on the 1/3 of chargeable income, and the remaining amount (GYD 200,000) is subject to taxes. The first GYD 260,000 would be subjected to the 25% tax rate, but in our scenario GYD 200,000 falls within this tax bracket. Therefore, GYD 200,000 x 25% = GYD 50,000 (tax payable for this band).

This information is current as of February 5, 2025, and is subject to change. Always consult with a tax professional for personalized advice.