What if I work for more than one employer?
If you work for more than one employer, the one that you have worked for the longest will be considered your primary employer and the other employer will be considered your secondary employer. Only your primary employer will qualify you for your $10,000 tax exemption. Let’s say you started working for the Financial Services Commission (FSC, your secondary employer Bobby’s will not be able to factor in your exemption when deducting your taxes from your salary.
How are payroll taxes paid?
If you are a business owner or a self-employed person operating in the BVI, you must register for a Payroll Tax Account with the Commissioner of Inland Revenue. You must register at the following locations:
- Inland Revenue Department at the Central Administration Complex on Tortola.
- Inland Revenue Department at the Vanterpool Administration Complex on Virgin Gorda.
- District Office if you live in Anegada (third Wednesday each month) or Jost Van Dyke (third Friday of each month).
Employers are required by law to deduct the amount of tax that you are required to pay from your salary and give it to the Government. Deductions must be made for equal amounts for each payment period. If an employer has failed to make the required tax deduction from an employee’s salary, that employer will still be responsible for paying the tax to Government, both the employee’s 8% and the employer’s 2% or 6% match. The employer, however, cannot make tax retroactive by going back and deducting it from an employee’s salary later. The law does not make provision for recovery of taxes from an employee by an employer. The law, though, provides for recovery of taxes from an employer by the Government.
You (if self-employed) or your employer must file your monthly tax return and pay your tax within 21 days of the end of each month. For an annual payroll tax return, you (if self-employed) or your employer must file your annual tax return and pay your tax by 30 April of the following year for which you are filing.
What documents do you need to submit with your tax?
Tax return forms to be completed and submitted with your tax are available at the Inland Revenue Department. You must also submit a financial statement with your tax return and tax. If you fail to provide the information or if you provide false information, you commit an offence and may be fined and/or imprisoned.
What happens if you don’t pay your tax?
If the tax is filed after the date it is due, there is a penalty of $50 or 5% of the taxable income, whichever is greater, and a further 1% of the tax payable for each month or part of the month during which failure to file continues. In addition to the penalty, tax not paid by the due date is charged interest of 4% per annum until it is paid up.
If you fail to pay your taxes, you may be convicted and may be fined and/or imprisoned.