Guyana to block oil sector companies from exploiting income tax “loophole”

Last Updated on Wednesday, 30 October 2024, 21:09 by Writer

Guyana would soon be amending the Income Tax Act to block oil sector companies from evading income tax payments by rotating foreign workers, Vice President Bharrat Jagdeo said Wednesday.

“They’re rotating them for six months and then sending them back so they’re bypassing their eligibility for taxation,” he told a news conference. Mr Jagdeo said in a number of instances, the companies bring in new people.

The Vice President said he had spoken with Commissioner General of the Guyana Revenue Authority, Godfrey Statia and government would soon be amending legislation to block that “loophole”  “so that people who come to work in the oil and gas sector, they can’t use this creative mechanism of rotating the foreign workers to avoid paying taxes.”

Mr Jagdeo said Guyanese companies, which are holders of Local Content Certificates, would have to include the rotating workers in their management structures and then apply the formula of 25 percent foreign management and 75 percent local management. “If they don’t meet the criteria, they may lose their local content certificate,” he said.

The top Guyana government oil and gas policymaker said several other areas of the relevant legislation would be tightened to ensure compliance.