Procedures for Filing of Income Tax Returns

Income Tax Returns are to be filed for three types of Taxpayers, The Corporate Tax Returns for Companies, The Partnership Tax Returns for partnerships and Joint Venture operations and the Individual Tax Returns for Individual Taxpayers.

Corporate Income Tax (CIT) Return

  • To be filed by all corporation regardless of profits or tax holiday status
  • To be filed three (3) months after the end of the company's fiscal year
  • The company is required to complete and attach a set of financial statement that meet generally accepted accounting principles
  • If a profit is made at the time of filing a 25% rate of tax is charged on the profit
  • The IRD officer issues the form for payment and payment is made by the IRD cashier
  • Returns can also be filed and paid online at eservices.gov.dm

Partnership/Joint Venture Income Tax Return

  • To be filed by all partnerships and joint ventures regardless of profits or tax holiday status
  • Tax return to be file three (3) months after the end of the entity's fiscal year
  • The entity is required to complete and attach a set of financial statement that meet generally accepted accounting principles
  • No payment are made on this return, only the share of profit/loss is declared
  • The individual partners are required to declare any profit or losses on their individual income tax return

Individual Income Tax Return

  • To be filed by any individual in receipt of employment income, net profits from a sole trader business, share of partnership income or a combine all in excess of $30,000.00
  • This tax return is due on or before the 31st of March annually
  • Tax related documents are required to attached such as annual salary slip (TD5), any interest statement used for allowable deductions, any statement of exempt income like DSS sickness benefit
  • A sole trader needs to attach a statement of profit and loss to the return
  • After various allowances one can claim, tax is charge on a progressive scale from of (15, 25 & 35) % at various tax brackets
  • If payment is necessary after any PAYE and other credits the IRD officer issues a form for payment at the IRD cashier
  • Return can also be filed online at eservices.gov.dm

When filing any tax return one needs the tax related documentation, such as annual salary slip (TD5) from an employer in the case of an individual, financial statements showing earnings and expenses for corporations, sole-traders, non-individual enterprises, trust etc.

Tax Returns are processed by the data processing sections and automatically affects the tax accounts of the taxpayer.

An assessment notice is generated immediately for Tax returns resulting in outstanding balances due to the state. The notice is printed and forwarded to the Taxpayer indicating that payment is due.

For returns resulting with zero tax to pay the assessment notice is not printed unless a request is made by the taxpayer.

Where the result is a refund due to the Taxpayer the notice is forwarded to the Refunds Officer for processing of the refund after all checks are made to validate the refund.

Posted: 14/09/2018