Annual Stamp Tax
Annual Stamp Tax Act. 36/1992.
Annual Stamp Tax is a tax charged on gross receipts of a business. The Tax charged for a year is based on the gross receipts for the previous year. That is, the tax for 2018 is based on the gross receipts for 2017.
Rate of Tax
0.5 % in respect of businesses with gross receipts under three hundred thousand dollars ($300,000.00) per annum.
0.7% in respect of businesses with gross receipts in the amount of three hundred thousand dollars ($300,000.00) and above. (Effective 2018)
NB: In applying the percentage rate of this tax, the first thirty six thousand dollars ($36,000.00) is exempt
Calculating Past Years
The percentage rate to be used in calculating Annual Stamp Tax (Tax period 2016) is:
- 0.75% in respect of businesses with gross receipts in the amount of $300,000 and above per annum.
- 0.5% in respect of businesses with gross receipts under $300,000 per annum.
Prior to tax period 2016 (the tax was amended in 2015), the rates were as follows;
- 0.25% in respect of businesses with gross receipts over $30,000 per annum but not exceeding $100,000 per annum;
- 0.5% in respect of businesses with gross receipts exceeding $100,000 per annum.
Gross Receipts shall include:
- Sale or the disposal of goods and services;
- Investment Income;
- Rental Income
- Interest Income;
- Cost of material from stock;
- Commissions and Fees including income fees from copyright, patents and intellectual property; any income not of a capital nature.
NB:The minimum Stamp Tax payable is $100.00.
Filing of Returns
Returns are due by March 31st of the assessment year. Any person who fails to submit a return within the prescribed time or any extended time allowed by the Comptroller would be liable to a penalty equal to the greater of.
Late Filing Penalty
5% of the amount of the tax owing plus a further 1% for the amount of the tax owing for each month or part of a month during which failure to file continues, and
$500.00, plus a further $100.00 for each month or part month the failure to file continues.
Late filing fee is limited to $10,000.00
Late Payment Fee:
20% of the tax due but not paid.
1.5% per month or part month, compounded, if an amount is not paid by the due date.
The tax is payable in nine monthly instalments, starting from April and going right on to December of the year the tax is payable.