The Guyana Revenue Authority (GRA) has recently reiterated the critical importance of employers’ obligations under Section 93(1) of the Income Tax Act to deduct and remit Pay-As-You-Earn (PAYE) taxes from all employees’ emoluments whether these employees are on contract and irrespective of the sector the business operates.
The GRA has emphasized that employers cannot determine whether a person is under a contract for service or a contract of service and this status can only be determined by GRA. Employers are therefore required to comply fully with the statutory provisions, irrespective of contract type.
Additionally, under Section 61 of the Income Tax Act and the Income Tax (Deduction of Tax from Emoluments) Regulations, all payments to employees, whether resident, non-resident, or under contract, must be reported monthly (Form 5, due by the 14th of each month) and annually (Form 2, due by 28 February of the following year).
The GRA has signalled increased enforcement, including onsite inspections by PAYE inspectors. Non-compliance may result in significant penalties, interest, and liability for unpaid taxes for the employer.
Key deadlines
- Form 5 (monthly PAYE return) is due by the 14th of each month.
- Form 2 (annual return) is due by 28 February of the following year.
Immediate actions required
- Review all current employment and contractual arrangements to ensure PAYE deductions are being made correctly.
- Review all payroll records to confirm compliance with all taxable and non-taxable allowances.
- Rectify any areas of non-compliance without delay.
How we can help
At PwC, we understand the complexities of payroll compliance and the risks associated with non-compliance. Our dedicated Tax and Legal team can:
- Conduct a comprehensive payroll health check to identify and address compliance gaps.
- Advise on best practices to mitigate the risk of penalties and manage GRA inspections.
- Support you with the preparation and submission of monthly and annual payroll returns.
Get in touch
Our team is ready to support you with navigating these requirements. Contact us at +592 226 0792 for more information.
