Category Centre - Companies/Employers

This is a summary of specific taxes which may be applicable to companies and/or the dates upon which
they are due and payable. Self employed persons include Taxi Drivers, suitcase traders, vendors,
hairdressers, tradesmen etc.

Reconciliation of PAYE Accounts and preparation of TD4 Certificates and Summary for the
JANUARY 02
previous year.
Remittance of December PAYE & Health Surcharge deductions and filing of PAYE Monthly
15
Return.
25 VAT Payable
FEBRUARY 15 Remittance of January PAYE & Health Surcharge deductions and filing of PAYE Monthly Return.
TD4 Certificates to be issued to all employees. Copies to be submitted to the BIR, PAYE Section,
28
along with TD4 Summary, IT 76 and Form IT 76 Supplementary for the previous year.
MARCH 15 Remittance of February PAYE & Health Surcharge deductions and filing of PAYE Monthly Return.
25 VAT Payable
First Quarterly Installment of Corporation Tax, Business Levy and Green Fund Levy due and
31
payable.
APRIL 15 Remittance of March PAYE & Health Surcharge deductions and filing of PAYE Monthly Return.
Final date of the payment of outstanding tax liabilities for the previous year without accruing
30
interest.
MAY 01 Interest accrues on outstanding tax liabilities at the rate of 20% per annum.
15 Remittance of April PAYE & Health Surcharge deductions and filing of PAYE Monthly Return.
25 VAT Payable
JUNE 15 Remittance of May PAYE & Health Surcharge deductions and filing of PAYE Monthly Return.
Second Quarterly Installment of Corporation Tax, Business Levy and Green Fund Levy due and
30
payable.
JULY 15 Remittance of June PAYE & Health Surcharge deductions and filing of PAYE Monthly Return.
25 VAT Payable
AUGUST 15 Remittance of July PAYE & Health Surcharge deductions and filing of PAYE Monthly Return.
SEPTEMBER 15 Remittance of August PAYE & Health Surcharge deductions and filing of PAYE Monthly Return.
25 VAT Payable
Third Quarterly Installment of Corporation Tax, Business Levy and Green Fund Levy due and
30
payable.
Remittance of September PAYE & Health Surcharge deductions and filing of PAYE Monthly
OCTOBER 15
Return.
31 Last day for filing the Corporation Tax Return without accruing a penalty for late filing.
NOVEMBER 01 Penalty of $1000 for every six month the Tax Return remains outstanding is imposed.
15 Remittance of October PAYE & Health Surcharge deductions and filing of PAYE Monthly Return.
25 VAT Payable
Remittance of November PAYE & Health Surcharge deductions and filing of PAYE Monthly
DECEMBER 15
Return.
Fourth Quarterly Installment of Corporation Tax, Business Levy and Green Fund Levy due and
31
payable.

VALUE ADDED TAXES

• If VAT Registered Your VAT Return is due and Taxes Payable on the 25th day preceding the Tax
Period.
• Your Tax Period is any two month period approved by the Board upon registration.

ALLOWABLE DEDUCTIONS FOR COMPANIES

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In ascertaining the CHARGEABLE PROFITS of a company the ‘rule of thumb’ is that the
expenses to be allowed must be wholly and exclusively incurred in the production of the income.
Additionally the company is eligible to claim statutory deductions granted under both the Income
and/Corporation Tax Acts.

The following are specifically identified in law as allowable deductions –

Full details of these deductions and allowances can be found in the Corporation Tax Booklet /
Corporation Tax Act (see Document Centre)
• Wear & Tear on plant, machinery and buildings used exclusively for housing plant and machinery
used in the trade.
• Wear & Tear in respect of Capital Expenditure incurred in respect of the construction of a building
or structure or on capital improvements made to a building or structure completed on or after
1/1/95, which is used in the course of trade or business. See W&T schedule in the Document
Centre for rates.
• Initial Allowance - Industrial Buildings - 10%
• Initial Allowance - Plant & Machinery - 75% effective 1/01/2008
• Annual Allowance - Industrial Buildings - 2% of cost
• Bad Debts incurred.
• Rates and taxes on real estate (not including income tax)
• Fire Insurance Premiums
• Contributions paid to an approved Pension Fund or Scheme for the benefit of employees.
• Lump Sum payments made to an employee in respect of past services to an approved fund or
scheme.
• Amount contributed to a trust under an approved pension fund plan
• Contributions by an employer in accordance with the NIS Act.
• Contributions by an employer to an approved Profit Sharing Plan.
• Employment Allowance – 200% of salary or wages paid to each additional worker hired on or
after Jan. 01, 1997- Dec. 31, 2005. for a period of 12 months. This allowance was repealed
Finance Act 2/2006.
• Management Charges paid.
• Promotional Expenses – 150% of the actual expenses incurred wholly and exclusively for the
purpose of creating or promoting the expansion of foreign markets for the export of specific items.
• Training or Retraining – 150% of expenses incurred in the training or retraining of employees up
to 31/12/05. This allowance was repealed Finance Act 2/2006.
• Art & Culture – 150% of the expenses incurred from 2001-2005 and actual expenses incurred
only from 01/01/06 up to a maximum of $1,000,000. ($300,000 Income Years 2001 & 2002,
$450,000 Income Yr 2003, $1,000,000 Income Years 2004 & 2005).

• Audio, Visual and Video Productions - 150% of the expenses incurred from 2003- present in
sponsoring audio, visual or video productions for the purpose of local education or local

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 entertainment or reflecting local culture for radio or television. This allowance shall be limited to
$1,000,000.(Income Year 2003 - $450,000)
• Production Companies Allowance – 150% of expenses incurred by companies producing its
own audio, visual or video productions for the purpose of local education or local entertainment
or reflecting local culture for radio or television. This allowance shall be equivalent to 150% of the
actual expenditure incurred limited to $1,000,000. (For income year 2003 the allowance was
limited to $450,000). In accordance with Section 10N this allowance shall not be granted in the
absence of Certification from the Minister. Effective Income Year 2006 the expenditure must be
in respect of its own audio, visual or video production for educational purposes or promoting or
reflecting local entertainment or local culture for use in radio, television or cinematograph works
• Sponsors of Sportsmen or Sporting Acitivities – 150% of the expenses incurred from 2003-
2005 and actual expenses incurred only from 01/01/06 in respect of sponsoring sportsmen or
sporting activities up tp a maximum of $1,000,000. (Income Year 2003 - $450,000.)
• Apprenticeship Allowance – 200% of the remuneration paid under registered apprenticeship
programmes for persons hiring secondary and post secondary students between the ages of 16-
24 limited to a maximum of six months per apprentice. The allowance is further limited to 5% of
the company total wages and salaries for the year. This allowance was repealed Finance Act
2/2006.
• Actual expenses incurred in granting Scholarships for nationals who are not company
employees.
• Expenses incurred in the acquiring from the holder, bonds, notes, debentures or other similar
debt securities.
• Export Allowance (up to Income Year 2002)

NOTE: WHERE ALLOWANCES ARE GRANTED IN RESPECT OF SPONSORSHIP OF

ARTS, CULTURE, SPORTSMEN, SPORTING ACTIVITY AND AUDIO, VISUAL OR VIDEO
PRODUCTION THE AGGREGATE ALLOWANCE SHALL NOT EXCEED $1,000,000.