MINISTRY OF FINANCE (DEPARTMENT OF INLAND REVENUE) TAX CREDIT & TAX DEFERRAL EMPLOYMENT RETENTION PROGRAMME
1. TARGET GROUP
Medium and large sized businesses, excluding businesses operating within the following sectors: hotels and resorts, retail or wholesale grocery establishments, regulated telecommunications, regulated financial and insurance business, or gaming.
This Programme aims to provide businesses with the cash flow of up to $600,000.00 for 3 months, to preserve current employment levels for non-executive staff, and includes the following:
(a) Non-reimbursable tax credit of up to 50% of the taxes due and payable by the applicant:
(i) under the Business Licence Act; and
(ii) between the 17th March, 2020 and the 30th June, 2020 under the Value Added Tax Act, not to exceed $300,000 in the aggregate.
(b) Tax deferral for Business Licence fees and Value Added Tax of up to 50% of the taxes due and payable or $300,000 in the aggregate, to be deferred to January 2021, after which it will be repayable over a 12 month period between January 2021 to December 2021.
Note: If payroll costs of a business exceed $200K per month, only $200K per month will be provided in tax relief; if payroll costs are below $200k per month, the tax relief will be equivalent to the payroll cost.
(a) Business must have a minimum of 25 employees or such number Minister of Finance may approve and an annual turnover of at least $3 million or such annual turnover as the Minister of Finance may approve.
(b) Business must agree to retain 80% of employee level as at 29th February 20,20 and continue to employ such staff at least until 31st October, 2020.
(c) Business must be in good standing with all tax agencies up to February 2020.
(d) The compensation can only be used to cover payroll obligations to non-executive staff for the period 1st April, 2020 to 30th June, 2020.
Note: (i) non-executive staff includes all employees of the business who are not the owners of the business, or hold the positions of or function in the capacities of president, vice president, director, or similar positions within the business.
(ii) payroll obligations refer specifically to the total gross basic pay of all non-executive staff of the business, excluding bonuses, tips, gratuities, commission and severance pay.
4. COMMENCEMENT AND EXPIRY DATES
All applications must be submitted by the 30th June , 2020.
5. HOW TO APPLY
Once your business meets the eligibility requirements, you may apply online to the Department of Inland Revenue using the following link:
Business will also be asked to provide the following along with their application, as proof of payroll:
- A copy of their non-management payrolls for the month of February 2020.
- A copy of banking information in support of their payroll cost.
- A copy of NIB returns for that month.
- A payroll showing the breakdown by employee categories.
- Evidence that the number of employees is equal to or greater than 25.
- A declaration that they will retain 80% of the workforce through to October 31, 2020.