Partnerships

Summary of Obligations for Partnerships

• Liable to pay Green Fund Levy at the rate of 0.3% on gross sales or receipts

• Required to file yearly Income Tax Return for partnership

• ​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.

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Summary of Obligations for Owners and Individual Partners

• Each is required to file yearly Income Tax Return for individuals (Non-Emolument)

• 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.

• 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%.

• 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.