Mortgage Interest Relief for loans up to $15M

Feb 02, 2017 News

Following an amendment to the Income Tax Act (Cap. 81:01) made possible through the passage of the 2017 budget, taxpayers will now be able to access Mortgage Interest Relief (MIR) on mortgages not exceeding $15M.
The amendment targeted Section 20(A)(1) which says, “Subject to this Act and the Regulations made under it, in ascertaining the chargeable income of an individual who was resident in Guyana in the year immediately preceding the year of assessment, there shall be allowed a deduction of the interest paid on housing mortgage loans owed by the individual to licensed financial institutions or approved mortgage finance companies for – (a) the purchase of land for constructing a residential building; (b) the construction of a residential building; or (c) the acquisition of a residential building, to be occupied by the individual as a first time home owner, where the principal amounts of the housing mortgage loans do not and did not at any time exceed the sum of fifteen million dollars in the aggregate.”
According to a statement circulated by the Guyana Revenue Authority (GRA) yesterday, potential applicants must note that their mortgage must not surpass $15M in aggregate where the loan was obtained on or after February 1, 2017.
The MIR programme was introduced in October 2013 and was aimed at helping persons realise their dreams as homeowners. As part of the criteria for benefitting from the relief, applicants must be a first-time homeowner and also provide relevant information from their prospective lending institutions, and include interviews with applicants.
The relief takes the form of a refund cheque paid by the GRA to the lending agency where the taxpayer has accessed the mortgage and is therefore bound by contract to repay with interest.

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