COMPANIES filing corporation tax returns for the Year of Assessment 2018 (Year of Income 2017) and until further notice are permitted to submit draft management accounts in the absence of audited accounts and in certain other instances as predetermined by the commissioner-general at the Guyana Revenue Authority(GRA).

This directive is aimed at reducing the numerous requests of the auditing profession and accounting firms for extensions beyond April 30th of each year — the due date for filing. This change will also reduce the incidence of late filing of corporate tax returns and alleviate the imposition of penalties and interest resulting from such late filing.

It should be noted that, in accordance with Section 10 of the Corporation Tax Act, Chapter 81:03, corporation tax shall be paid at the rate of 45 per cent of chargeable profits of a telephone company, 40 per cent of the chargeable profits of a commercial company other than a telephone company and 27 and one-half per cent of the chargeable profits of any other company. For companies that are engaged in commercial and non-commercial activities, the rate of 27 and one-half per cent applies to the non-commercial activity, while the commercial activity of the company shall be taxed at the rate of 40 per cent.

Further, under section 10A, of the said Act, where for any year of assessment the corporation tax payable by a commercial company is less than two percent of the turnover of the commercial company in the year of income, there shall be levied on, and paid by the commercial company, a corporation tax (in this Act referred to as “minimum tax”) at the rate of two percent of the turnover of the commercial company. Provided that when proven to the satisfaction of the commissioner-general, that the rate of two percent of the turnover of the commercial company or a company engaging in commercial activities, exceeds the 40 per cent rate of tax, then the corporation tax payable shall be limited to the corporation tax assessed and payable at the 40 per cent rate.