Operator Taxation (Guyana)

Taxation of gambling operators in Guyana

1) Frame: where taxes "live"

Basic special taxes and definitions for rates/lotteries are fixed in the Tax Act (Cap. 80:01). It describes lottery and sweepstakes tax, licences and tax for pool betting, and licences for betting premises.

General "prohibitive" law - Gambling Prevention Act (Cap. 9:02): he defines "common gaming house" and "public lottery," as well as sanctions, on top of which allowed regimes and taxation are then introduced.

Casinos operate under licenses issued by the Gaming Authority (2007 amendment to the Gambling Prevention Act), but tax payments and operator accounting are subject to general tax regimes and special Tax Act regulations.

2) Betting/betting (pool betting)

Definitions and tax base. Tax Act introduces the concepts of pool betting, promoter and "money or money's worth paid as a bet." Each space requires an annual license to operate; the fee is fixed GYD 2,000,000 per object.

Tax rate. For each acceptance of funds "on account of the bet," a tax of 20% of gross receipts is charged. According to the text of the law, payment is historically tied to weekly periods (until Thursday for the week, law L.R.O. 1/2012).

Reporting practice. The Tax Service (GRA) publishes the Tax on Betting Return form and the deadlines for its submission (as a rule, until the 14th day of the month following the reporting one). These are the GRA administrative rules for monthly compliance.

3) Lotteries

Government Lotteries Act (Cap. 80:07) - an independent law regulating the state lottery and allowing, among other things, to establish the procedure for the circulation of unclaimed winnings in favor of the state fund.

The Tax Act has a special tax rate of 8⅓% on gross ticket sales of individual traditional lotteries (historical reference to the Demerara Turf Club). This shows that lottery receipts were taxed both as a "special tax" and through other financial mechanisms.

Concession terms are used for the modern national lottery; in public materials, a license fee of 24% of gross revenue under a contract with an operator was mentioned (example from reporting/media). Specific interest is the subject of the relevant agreement and does not replace the Tax Act.

4) Casino (offline)

Licensing: casino premieres license and casino operator's license (issued by Gaming Authority). Tax special bets on the shaft for casinos in the text of the Tax Act itself are not highlighted; operators pay corporate taxes and other general taxes, plus the stipulated license fees/duties according to the regulations.

5) Corporate taxes, minimum tax and VAT

Corporate tax (CIT).

25% - for "non-profit" companies/activities.

40% - for "commercial" companies (trading/banking, etc.; telecom is a separate story in different years).

Minimum corporation tax (MCT) for commercial companies.

If 40% of profit is less than 2% of turnover, a minimum tax of 2% of turnover applies; MCT "overpayment" is carried forward.

VAT.

Base rate of 14% on taxable supplies in Guyana; GRA registration is mandatory for VAT payers. The applicability of VAT to specific gambling services depends on their classification and the current GRA clarifications (the operator needs to check the interpretation for his products).

CIT deadlines and forms.

CIT submission and payment - according to GRA schedule; advance payments and annual calculation are valid (see corporate forms and GRA directories).

6) Non-Resident Payments (WHT)

Standard WHT rates (without double tax treaty): 20% on dividends/interest/royalties to non-residents. Deadlines for submission - as a rule, until the 14th day of the next month; reduced rates are possible under contracts.

7) What is important for operators in practice

1. Classify your business model. A bookie (pool betting) is a + 20% room licence from Tax Act gross rates; the lottery has its own logic (Tax Act + concession conditions); casinos have GA licenses and a common tax outline (CIT/MCT/VAT/WHT).

2. Observe the GRA calendar. For rates - monthly forms (Tax on Betting Return); according to CIT/VAT - reporting within the terms of GRA; WHT - withholding and reporting on payments to non-residents.

3. Consider MCT 2% of sales. For commercial companies, this is a "threshold" that works at low margins. Plan cash flow and advances based on possible MCT.

4. Local lottery contracts. Concession parameters (as a share of gross revenue) - outside the general tax rates; check the current contract/regulation.

5. Combinations of activities. When combining "commercial" and "non-commercial" activities, the "double" logic of CIT rates (40 %/25%) by type of activity applies.

8) Short memo on rates and documents

Pool betting: room license (GYD 2 million/year) + 20% of gross rate receipts; reporting and payment under the GRA schedule.

Lotteries: special taxes (including historical 8⅓% from the Tax Act for individual lotteries) + concession conditions for the national lottery (for example, 24% of gross revenue under the agreement).

Casino (offline): Gaming Authority licenses; taxes - CIT 25 %/40% (+ possible MCT 2% of turnover), VAT 14% according to classification, WHT 20% for payments to non-residents (if there are no reduced contractual rates).

Abandoning speculation and checking relevance

Norms in cited acts (Cap. 80:01 and Cap. 9:02) - consolidation L.R.O. 1/2012; GRA administration regularly updates instructions and forms (including due dates). Before implementing the model, we recommend that you check the latest GRA clarifications and - for lotteries/casinos - the current regulations/concession agreements.

• Tax Act (Cap. 80:01) - pool betting: GYD license 2 million/year; 20% of gross receipts; definitions and order.
• Gambling Prevention Act (Cap. 9:02) - definitions of "common gaming house "/" public lottery "and common framework.
• Gambling Prevention (Amendment) Act 2007 - Gaming Authority casino license authority.
• GRA - Tax on Betting Return
• GRA - CIT rates (25 %/40% and separate taxation of mixed activities).
• PwC/EY - confirmation of MCT 2% turnover and practical nuances of CIT.
• GRA - VAT 14% (method) and VAT registration FAQ.
• National Lottery (example of a concession) - material about 24% of gross revenue as a license payment.