Capital Gains Tax was introduced in Guyana from 1 January, 1965 and is guided by the Capital Gains Tax Act. Chapter 81:20.
Persons are required to pay on the gains made from the disposal of assets. An asset may be disposed of either by selling it to someone else, giving it as a gift to another person, or exchange it with another person. This may be done either wholly or partially.

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Capital Gains

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A capital gain is the amount by which the consideration received for the change of ownership of an asset exceeds its cost of acquisition, or its value at the time required, or its market value at 1st January, 1991, whichever is later.
The term "Acquisition" means obtained by purchase, gift, inheritance, or exchange, or in any other manner whatsoever.

Capital gains may also arise from the surrender or relinquishment or transfer of rights, and from redemption, dissolution, liquidation, amalgamation, merger and formation of companies.

 

Persons Exemption From Capital Gains

Those persons exempt from the operation of the Property Tax Act are also exempt from the operation of Capital Gains Tax Act.
 

These include:
    the President of Guyana
    any Local Authority
    any statutory or registered building or Friendly Society
    the Sugar Industry Labour Welfare Fund
    any official of the United Nations who is a resident in Guyana
 

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Charge of Capital Gains Tax

Capital Gains Tax is payable on the net chargeable Capital Gains of any person accruing in or derived from Guyana or elsewhere. However, where such Capital Gains accrue outside of Guyana to a person who is not ordinarily resident or is not domiciled in Guyana, Capital Gains Tax shall only be payable on the amount of Capital Gains received in Guyana.
No Capital Gains Tax is payable where a gain is treated as profit or income under the Income Tax Act.
Capital Gains tax shall not be payable on any Capital Gains where the transaction was effected more than twenty-five years after the date of acquisition of the asset from which the gains arose.
Net chargeable Capital Gains arising to a person within a period of twelve months after the charge of ownership occurs is deemed to be part of the chargeable income for Income Tax purposes and therefore not eligible to Capital Gains Tax unless the Commissioner-General is satisfied that the charge to Capital gains Tax is appropriate.

Capital Losses Carried Forward
A net Capital Loss incurred in any year is carry forward for set-off against future Capital Gains.

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Basis of Assessment
Capital Gains tax is charged, levied and collected for each year of assessment upon the net chargeable Capital Gain of any person for the year immediately preceding the year of assessment.

Rate of Tax
Capital Gains Tax is charged upon the net chargeable Capital Gain of any person for each year of assessment at the rate of twenty percent (20%).

Persons Required To File A Return
Every person chargeable with Capital Gains Tax shall on or before the 30th April in every year deliver to the Commissioner-General, Guyana Revenue Authority a true and correct return of his Capital Gains from every source whatsoever for the year immediately preceding the year of assessment.

 

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