The United States Embassy is advocating for the removal of double taxation affecting American companies operating in Guyana, citing growing investment and concerns over fairness.
U.S. Ambassador Nicole Theriot said efforts are underway to secure a bilateral tax treaty between the two countries, which would prevent companies from being taxed on the same income in both jurisdictions.
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“We do not have a bilateral tax treaty… we’re trying to convince Washington that this would be useful,” Theriot explained, noting that U.S. firms currently face the burden of paying taxes in both Guyana and the United States.
The ambassador highlighted the rapid expansion of American investment across multiple sectors in Guyana, including construction, agriculture, and technology. She pointed to a recent agreement involving a U.S. company to establish a data center, underscoring the country’s increasing appeal to foreign investors.
However, the absence of a formal tax treaty remains a significant concern for businesses seeking to operate efficiently across borders.
Currently, Guyana maintains double taxation agreements with countries such as Canada, the United Kingdom, members of the Caribbean Community (CARICOM), and the United Arab Emirates. In contrast, its arrangement with the United States is limited to a Tax Information Exchange Agreement, which facilitates financial transparency but does not eliminate double taxation.
Local accountant Christopher Ram explained that double taxation treaties are designed to ensure income is taxed only once, typically in the country where it is earned.
“If such a treaty is established, income earned in Guyana would be taxed there and not again in the United States,” Ram said, adding that similar principles apply to Guyanese businesses operating abroad.
While acknowledging the potential benefits of such an agreement, Ram cautioned that the terms must be carefully negotiated to protect Guyana’s interests.
“The conditions must be good,” he said, warning that poorly structured agreements could disadvantage smaller economies. He referenced past regional experiences, including a case in Trinidad and Tobago, where an unfavorable treaty reportedly resulted in significant financial losses.
Ram also emphasized that any proposal allowing foreign companies to avoid taxation in Guyana altogether should be firmly rejected, stressing the importance of maintaining the principle that income generated locally should be taxed within the country.
The push for a bilateral treaty reflects broader efforts to strengthen economic ties between the United States and Guyana, as the latter continues to attract increased international investment.
