Govt reduces tributors, percentage take for gold miners

DPI, GUYANA, Monday, November 27, 2017

The Guyana Revenue Authority will slash the tributors’ tax by half and introduce a sliding scale percentage for taxable income for all gold miners come January 2018.

Minister of Finance, Winston Jordan noted that the tributors’ tax will be reduced from 20 to 10 percent effective January 1, 2018. However, he said that tribubtors “will continue to file annual tax returns and pay any due taxes or be refunded as appropriate.”

Minister Jordan made the announcement today during his presentation of the 2018 National Budget to the National Assembly. In tandem, the Guyana Revenue Authority (GRA) and the Guyana Geology and Mines Commission (GGMC) will be intensifying their efforts to bring operators in the industry within the tax net.

Meanwhile, miners will no longer be required to pay two percent of gross proceeds to the GRA. Minister Jordan said a new regime with a sliding scale percentage based on the price of gold will be introduced.

The sliding scale is outlined below:

Price of Gold (per ounce)	Percentage Income Tax Payable
Under US$1,100	2% Income Tax (Final Tax)
US$1,100 and under US$1,300	2.5% of gross proceeds (Final Tax)
US$1,300 and under US$1,600	3% of gross proceeds (Final Tax)
Over US$1,600	3.5% of gross proceeds (Final Tax)

Minister Jordan noted that operations in the industry must continue to keep records of income from mining operations in accordance with the law.

The decision to reduce these tax measures which were introduced in the 2017 National Budget last year, following strong representation by the Guyana Gold and Diamond Miners Association (GGDMA), Minister Jordan noted.

 

By: Tiffny Rhodius