The Guyana Revenue Authority continues to sensitise taxpayers, the general public and other stakeholders on matters pertaining to the various legislations it administers. In this regard, the following information seeks to give clarity on the statutes, rules and procedures which would apply to the grant of tax exemptions to re-migrants, settlers and returning students.

AGENCIES

The Ministry of Citizenship and the Guyana Revenue Authority (GRA) are the two agencies involved in the process of determining the eligibility of a person for the relevant status and tax concessions, respectively. The Ministry of Citizenship determines whether a person qualifies as a re-migrant, settler or a returning student, and the Guyana Revenue Authority determines the items and the level of tax exemptions to which such a person is entitled.

GENERAL APPLICATION PROCEDURE

An application must be made in person to the Re-migration Officer at the Ministry of Citizenship within the first three (3) months of resettlement. If a person has satisfied the eligibility criteria, the Ministry sends the relevant documents to the Guyana Revenue Authority where the qualified applicant would be subject to an interview by an officer of the Tax Exemption Processing and Verification Section. Once the interview has been completed and the officer is satisfied with the documentary evidence supporting the tax exemptions requested, the qualified applicant would be issued with a letter outlining the tax exemptions granted and the conditions under which such exemptions were granted.

DEFINITIONS

The following categories of persons, once granted the relevant status by the Ministry of Citizenship, would be eligible for tax exemptions:

1. Qualifying re-migrants – means Guyanese citizens returning to reside in Guyana after a period of continuous bona fide residence of at least five years abroad who have attained the age of eighteen as of the date of return and met the criteria specified in the regulations. Guyana recognizes as citizens by descent, the children of Guyanese by birth, wherever those children are born. Further, each member of a family, once they satisfy the residency and age requirements, is treated as an individual re-migrant.
2. Settlers – mean any person not being a resident of Guyana who satisfies the Comptroller, within three months of his entry, that he intends to take up residence in Guyana for a minimum period of three years.
3. Returning students – means Guyanese students who have completed at least three consecutive years of training overseas.

TYPES OF TAX CONCESSIONS AND LEGISLATIONS

1. IMPORT DUTY – Motor Vehicle -Section 23 (1) (a) of the Customs Act, Chapter 82:01 exempts the import duty on motor vehicles by qualifying re-migrants, settlers and returning students. This means that no import duty is payable on a motor vehicle imported or purchased locally by a qualifying re-migrant, settler or a returning student.
   Household Effects & Baggage – the First Schedule Part 111 B (ii) Item 5 (3) to the Customs Act exempts import duty on household effects for a settler, while Item 5 (4) exempts import duty on the baggage and household effects of a qualifying re-migrant. This means that no import duty is payable on a reasonable quantity of tools of trade, personal and household effects imported by a settler or a qualifying re-migrant. With regards to the importation of arms, ammunition, communication equipment and any other items which may require an import licence or special approval, such licenses and approvals must be obtained from the relevant agencies.
2. EXCISE TAX – Table A -2-2 of the Excise Tax Regulations 2005 prescribes the excise tax payable on motor vehicles acquired by re-migrants, settlers and returning students. The total excise tax exempted shall be in accordance with the provisions of Section 23 of the Customs Act, Chapter 82:01. Section 23 of the Act states that the total exemption shall not exceed the sum of five million dollars ($5,000,000) in customs duty, excise tax and value-added tax.Where the duties and taxes payable exceed the sum of five million dollars ($5,000,000), the re-migrant, settler or returning student shall be permitted to pay the additional duties and taxes. Further, a re-migrant, with the approval of the Commissioner-General, may be permitted to acquire more than one vehicle within six months of re-assuming residence. However, if more than one vehicle is imported by the re-migrant, the total exemption on the motor vehicles would be limited to a maximum of five million dollars ($5,000,000). Any excess tax on the motor vehicles would have to be paid by the re-migrant.
3. VALUE – ADDED TAX – Motor Vehicle – In accordance with Paragraph 10 (b) of Schedule 11 of the Value – Added Tax, Chapter 81:05, motor vehicles imported for persons qualifying for exemption from customs duties under section 23 of the Customs Act are exempted from the payment of value – added tax. This means that no value-added tax is payable on a motor vehicle imported or acquired locally by a re-migrant, settler or a returning student.
   Personal Effects -Further, Paragraph 14 (c) of Schedule 11 of the Value – Added Tax Act, Chapter 81:05 exempts the payment of VAT on the importation of personal effects by re-migrants who qualify for exemption from customs duties under section 23 of the Customs Act. This means that no value-added tax is payable by re-migrants when they import their personal effects.

OBLIGATIONS

1. A qualifying re-migrant must import the motor vehicle with new tires, within six months of re-assuming residence; and a settler must import the motor vehicle with new tires within six months after their arrival in Guyana.
2. Both parties must produce a Certificate of Title, Registration or other form of proof of ownership, confirming ownership of the motor vehicle for at least six months and the motor vehicle should not be older than eight years from the date of manufacture to the date of importation.
3. The re-migrant or settler cannot transfer or lease the motor vehicle prior to the expiration of three years in the case of a used vehicle, and five years in the case of a new vehicle.
4. The re-migrant or settler must reside at least one hundred and eighty-three (183) days for each year until the threeyear or five-year period, as the case may be, has expired.
5. If a re-migrant or a settler fails to comply with numbers 3 and 4 above, the foregone tax would be reduced and become payable in accordance with section 23 of the Customs Act, Chapter 82:01.

Contact Us:
Tax Advisory Services Section
Communications & Tax Advisory Services Division
Guyana Revenue Authority
200 -201 Camp Street
Georgetown
Guyana
Tel: 227-6060 | 227-8222 Ext: 1201-1204
Email: gravat@gra.gov.gy
Website: www.gra.gov.gy