Latest update February 14th, 2025 8:22 AM
We need to know the scope of these two agreements signed by Govt. and the specific benefits which will accrue to Guyana
DEAR EDITOR,
Yesterday, the Kaieteur News carried an article “United Arab Emirates to help Guyana address challenges to taxation, customs”, sourced to Director General of the Ministry of the Presidency, Mr. Joseph Harmon, stating that by way of two crucial agreements, Guyana will soon be able to lean on the expertise of the United Arab Emirates (UAE) in addressing taxation and customs issues.
The referenced agreements approved by the Cabinet “speak[s] to the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital”.
It appears that Mr. Harmon is referring to the kind of double taxation agreements under section 89 of the Income Tax Act of Guyana which authorises the Minister to enter into arrangements “with the Government of any other country with a view to affording relief from double taxation in relation to income tax and any tax of a similar character imposed by the laws of that country…”
It would be interesting to learn whether the Guyana Revenue Authority was involved in the negotiations leading up to these agreements and the kind of expertise which the UAE can offer Guyana in matters of taxation and customs.
Whoever negotiated the two agreements must be aware that the UAE is a federation of seven Emirates and that there is no federal corporate income tax (CIT). It is possible that Guyana may have entered into an agreement with one or more of those emirates, but that is not what Harmon said.
Similarly, the UAE does not levy income tax on individuals. Excise Tax and Value-Added Tax do exist in the UAE, but these are not taxes subject to the section 89 provision.
It would help us citizens to understand the scope of the two agreements signed by our Government and the specific benefits which will accrue to Guyana from the agreements.
Christopher Ram
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