Summary of Obligations for Partnerships
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Liable to pay Green Fund Levy at the rate of 0.3% on gross sales or receipts
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Required to file yearly Income Tax Return for partnership
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Value Added Tax (VAT) registration if income exceeds $500,000 in any successive twelve (12) months.
- Partnerships are not subject to Income/Corporation Tax, but are subject to VAT, Green Fund Levy.
Summary of Obligations for Owners and Individual Partners
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Each is required to file yearly Income Tax Return for individuals (Non-Emolument)
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Liable to pay Business Levy at the rate of 0.6% on gross sales or receipts if income is above $250,000 after three years of commencement of trading (usually interpreted as commencing from the date of registration) and subsequently thereafter.
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Liable to pay Income Tax at the rate of 25% on the profits after deducting business expenses and personal allowances (where applicable). Chargeable profits over $1,000,000 are taxed at the rate of 30%.
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Liable to pay Health Surcharge at the rate of $8.25 per week / $429 yearly
Payment Dates:
- PAYE – 15th every month (once business has employees)
- NIS – 15th every month (once business has employees)
- Health Surcharge – 15th every month (once business has employees)
- Income Tax – 30th April (with the filing of the tax return)
- Business Levy – last day of each quarter (Mar, June, Sep, Dec)
- VAT – 25th day of the month following the VAT period.
Filing Date:
Filing your Income Tax return is done usually on April 30th (or the date specified by the Board of Inland Revenue). Late filings incur a penalty from 1st November and every six months thereafter of $100.
If you registered and operated a business for any part of 2020, then filing is mandatory. (even if no transactions occurred and no money made)
Penalties and Interest:
- Late payments on Income Tax incur interest at the rate of 20% per annum from due date
- Late payment of VAT results in a Penalty of 8% and interest of 2% per month.
- PAYE – 25% and interest of 20% per annum (on both principal and penalty)
- NIS – Late payment of 25% and interest of 15% per annum (on both contribution and penalty)