Tax act
In presenting the 2011 budget, the administration informed the country that it was reducing the tax rates that were applied to the income of commercial and non-commercial companies doing business in Guyana. Commercial companies will now pay a rate of 40 per cent and non-commercial companies will pay a rate of 30 per cent. The rate reduction of five percentage points by the administration applies to both types of companies, even though the starting point for each is different. To get a better understanding of the consequences of the rate change, Guyanese need to keep in mind what is a commercial company and what is not. The Corporation Tax Act provides some help.
Label
A reading of that document reveals that a commercial company is any entity which derives at least 75 per cent of its gross income from trading in goods which it does not manufacture. It leaves little doubt that the definition applies to all and sundry who obtain a significant share of their income from selling goods that they do not produce. It does
