Miners were on Wednesday reminded of the changes in tax laws that will result in their payments on income derived from gold produced being treated as a final tax as of 2018.
At a members’ meeting, President of the Guyana Gold and Diamond Miners Association (GGDMA) Terrence Adams reminded miners that Minister of Finance Winston Jordan had stated in his budget speech for 2018 that it is allowed for tax to be assessed on a sliding scale and that such tax will be
a final tax on income from gold produced from their respective dredges and declared and sold to the Guyana Gold Board (GGB). As a result, tax assessed on income derived from gold produced from dredges will be treated as final tax of 2018 once it is declared and sold to the Board or a licensed dealer.
However, Adams explained that the law did not reflect the understanding as it relates to the final tax despite letters from the Commissioner General of the Guyana Revenue Authority Godfrey Statia and Jordan.
“Subsequently, based on such representations by the GGDMA, and for avoidance of doubt, Section 33 E (1) of the Income Tax Act was amended to reflect the concerns of the GGDMA, and will take effect from 2018 as agreed,” the GGDMA pointed out.
As a result of the change, the tax payable to the revenue authority will be assessed on a sliding scale. For an ounce of gold under US$1,100, there will be a 2% Income Tax (final tax) attached; for US$1,100 and under US$1,300, a 2.5% Income Tax fee is attached; for US$1,300 and under US$1,600, a rate of 3% in attached, while over $1,600, a rate of 3.5% income tax is attached.
GGDMA Administrative Manager Avalon Jagnandan further explained that the Association wanted to remind the miners of the changes given that it is currently “tax season.” He also pointed that they have been running full page ads in the print media over the last few days.
The members in attendance did not express any issues with the changes.