Category Centre - Employees/Pensioners
FOR THE EMPLOYEE (THE EMOLUMENT EARNER)
YOUR RESPONSIBILITIES -
- On taking up employment for the first time -
- Apply for a Board of Inland Revenue (BIR) File Number
- Give BIR Number to your Employer
- Complete a Tax Declaration Form 1 (TD1) and give to your employer. A TD1 would require prior approval from the Inland Revenue Division where claims are made in respect of – Tertiary Education Expenses, First Time Acquisition of Home, Alimony/Maintenance, Contributions to Deferred Annuity or Pension Plans, Investment in Venture Capital.
- A new TD1 must be completed and submitted to your employer within seven days of a change in any of your deductions.
- Ensure that your employer is deducting the correct Income Tax from your emoluments (Income).
- Assess your Tax Liability by April 30th of the year following that in which you earned the Income to ensure you paid the correct tax for that year.
- Interest is charged at the rate of 20% per annum from May 1st to the date the payment is made.
- Keep all records of TD 4 Certificates obtained from your employer(s).
- If required to File an Income Tax Return, ensure that all supporting documents are attached including your TD4 Certificates.
- Income from all sources must be included on ONE Income Tax Return for a year of income.
See "Tax Guide for the Individual"
FOR THE PENSIONER
ALLOWABLE DEDUCTIONS & CREDIT
INCOME YEAR 2009
These deductions, credits are available to Resident Individuals, i.e individuals in the country for a period exceeding 183 days for the year.
Personal Allowance - $60,000
First Time Home Owners - $10,000
Contributions/Premiums to Deferred Annuities/Pension Plan/70%NIS - $30,000
Tertiary Education Expenses
Alimony/Maintenance - 100% of contributions
Investment in a VENTURE CAPITAL COMPANY - the credit granted is equivalent to the individual's marginal rate of tax multiplied by the actual investment made.
CHARGEABLE INCOME 25%